TIM LESMEISTER - Trade Show Executive

Society of Association Executives
(ASAE) and The Center for Association
Leadership.
The CIC said it endorsed the guidelines
on February 17 because conventions,
trade shows and other business events are
critical to the performance of individual
companies and the entire U.S. economy.
Exhibitions Generate Sales
“Exhibitions provide a wealth of
industry information and contacts under
one roof and support the sales efforts
critical to driving revenue to companies
already hurting in the current economy,”
the statement said. “Limiting these events
Event Travel Guidelines
The exhibition and travel industries developed a list of
guidelines for travel to meetings and events for companies
receiving assistance from the Troubled Asset Relief Program
(TARP). The guidelines are a response to criticism from
elected lawmakers in Washington to the travel practices of
TARP recipients.
Model Board Policy for Approval of Meetings, Events
and Incentive/Recognition Travel
• General policy statement: The CEO shall be responsible
for implementing adequate controls to assure that meetings,
events and incentive/recognition travel organized by the
company serve legitimate business purposes and are costjustified.
• All proposed meetings, events and incentive/recognition
travel organized by the company must serve one or more
specified legitimate business purposes. Each proposed
meeting, event or incentive/recognition travel with a cost
exceeding $75,000 must be supported by a written business
case identifying a specific business purpose.
• Total annual expenses for meetings, events and incentive/
recognition travel shall not exceed 15% of the company’s
total sales and marketing spend.
• The amount spent for an employee performance incentive/
recognition event shall not exceed 2% of the total
compensation of eligible participants or 10% of total award
earners’ compensation.
• The process for approving meetings, events and incentive/
recognition travel, and the procedures for assuring
adherence to this policy, will be subject to independent audit
to confirm policy adherence.
• At least 90% of incentive program attendees shall be other
than senior executives from the host organization.
• Performance incentives shall not promote excessive or
unnecessary risk-taking or manipulation of financial results.
• All internal meetings or events attended only by senior
executives and/or board members shall be devoted
would curtail the hundreds of millions
of dollars worth of business transacted.
These events are supported by thousands
of U.S. corporations that value the
opportunity to do business, engage in
education and create new relationships for
their success.”
The Educational Aspect
The CIC also pointed out that
conferences and meetings offer training
and professional education, such as
Continuing Education Units and
Continuing Medical Education credits
that are required for various licenses.
“This education is critical to keeping
America’s workforce at the top of its game
in a competitive global marketplace,” the
statement said.
The Economics of the Event Business
An equally important impact of
business travel, the CIC said, is the
economic benefit that comes in the form
of jobs, tax revenues and direct spending
in host cities. “Cutting back on travel
kills jobs at a time when job preservation
and creation is critical,” the statement
said.
Reach Karen Kotowski, chief
operating officer, at (571) 527-3116 or
kkotowski@conventionindustry.org
to specific business purposes, and participating senior
executives shall be responsible for any expenses incurred for
non-business related activities.
• The CEO of the company shall certify to the board that
the policies are being followed and are sufficient to provide
reasonable assurance that the company’s expenditure for
such purposes are not excessive.
• These policies shall be subject to modification only with
board approval stating the specific business rationale for the
change in policy.
Examples of Legitimate Business Purposes for Meetings,
Events, Incentive/Recognition Travel
• Trade shows and similar events that bring prospective
buyers and sellers together.
• Effective product launches to educate sales force, channel
partners and customers.
• Sales conferences and employee meetings to align vision,
strategy and tactics.
• Training and staff development meetings.
• Employee recognition programs to motivate and reward
employees for achievement and productivity.
• Professional conferences that provide networking,
education and best-practice sharing.
• Performance incentives with clear rule structures that
are designed to motivate and reward high performers
for exceeding established goals that generate incremental
revenue growth for their respective organizations and that
are beyond the investment in the program.
• User conferences for customers and product development
events for research and development purposes.
• Corporate-sponsored events that further charitable purposes.
• Strategic, business and financial planning and review
meetings.
• Employee meetings as a result of company mergers or
acquisitions for the purpose of alignment of products,
brands and cultures.
Continued on page 11
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