AIG board 'rebuffs' CEO Benmosche on use of jet

NEW YORK: American International Group Inc Chief Executive Officer Robert Benmosche was rebuffed by the insurer's board after saying he should be allowed personal use of the bailed-out company's aircraft, according to two people familiar with the matter.

The board said flights will be limited to business purposes because an exception would require permission from the Treasury Department, said one of the people, who asked not to be identified because the talks were private. AIG posted an expense guideline on its website this week, saying personal use of corporate jets is "strictly prohibited".

AIG, which was rescued a year ago with a US lifeline that swelled to $182.5 billion, has to sell assets to repay government loans under the direction of Benmosche, who took the CEO post last month. Outrage over bonuses and perks including corporate jets led Congress to require that Troubled Asset Relief Program recipients disclose their policies on expenses.