The CEO of the company needs to cut back on the insurer’s spending even further.
The CEO of the Citizens homeowners insurance company in Florida implemented some strict travel expense policies in place in order to help cut spending, but is having trouble adhering to those regulations.
Barry Gilway has been submitting expenses that are far above the regulations he put into place.
It has now been revealed that Gilway, the chief executive officer of the homeowners insurance company, has stayed in a hotel that costs almost twice as much as the room rate cap that he implemented at Citizens. Though he was charged with the company’s spending housecleaning in the first place, he seems to be struggling to keep up with his own regulations.
The CEO has been expensing the homeowners insurance company for other purchases that are not permitted, as well.
For instance, it has been reported that Gilway used the homeowners insurance company’s corporate credit card to purchase liquor, which is in direct violation of the organization’s regulations. He is also known to be late in submitting his expense forms, and he needs to be reminded to provide itemized receipts with those submissions.
At the same time, the Florida homeowners insurance company has shown to have taken important steps, overall, in order to considerably reduce its travel spending. This occurred following a discovery made by reporters in the state, who reported that the executives from Citizens had been staying at five star hotels and were charging lavish and expensive meals at exactly the time that the company was claiming that it was being forced to considerably raise its rates.
Equally, while it has been making some progress, further belt tightening is needed in order to adhere to its own rules, as some of the executives in the company, including the CEO, are not keeping up. Some have not kept up with the 15 day deadline in which expense reports are to be submitted, following a trip. Furthermore, hundreds of dollars are often spent in order to change airplane tickets. The homeowners insurance company is still footing the bill for expensive dinners as co-workers dine together at high end restaurants.