How Would You Handle? Employee spends too much on company card. But is top producer...

You better get Chad in line. If not next thing you know your kids are calling him Daddy

If you have a rule, enforce it.

If this in finance that's in violation of FINRA rules baw.

Don’t let a penny hold up a dollar.

I'd treat it like I do with my kids.

Sometimes, rules can be flexible and make sure he knows that. BUT, he has to understand you know about it and are choosing to allow it. Moving forward, anything over the $125 is acceptable but only 50% of whatever is over $125 will be approved and he can cover the rest himself up to $____.

If he's making you a ton of money why are you sweating over $125?

Bring it up in private. Don’t make a huge deal about it, but let him know $250 for a single meal is egregious and that it shouldn’t happen again.

I've been on both sides of that equation and it is not an easy answer. Here are a few thoughts, not in order.

1. Is any of that going to customer dinners? I am generous with customers that (a) spend a lot, (b) are having problems with us IE late or warranty, (c) first order, (d) Christmas. I find this comes back around big time.

2. Is the employee frustrated? I find myself and other salesmen are more apt blow out the expense account when the main office is not keeping up. I would consider a discussion with your salesman about his satisfaction level. Is there any dead wood in the office? Are things late? Is the quality compromised? Is the customer happy?

3. If things are good and he just considers it justifiable to buy steaks based on his stellar performance, you have two options: (a) suck it up, it's better than paying two more employees and their healthcare and travel costs; (b) reinvent his comp plan. Give him a variable overall budget related to revenue, profit, days on the road, etc... rather than a flat per diem. You can build in many factors and benefits here other than per diem. You are essentially making him the owner/CEO of his own small profit center. If he wants to blow out $250/night on steaks, it comes out of his P&L and affects his comp.

This will not only reinforce good spending habits, you may actually see nights on the road go down, mileage, etc... and more problem solving when it comes to the big picture. If he feels someone in the home office is sluffing off, he will be more incentivized to address the issue with you or go right to the source and attempt to problem solve.

You can’t just ignore it altogether, though. Pull him in for an informal chat and let him know that you recognize his contributions and are fine with stretching things a bit in recognition of those contributions but doubling the per diem in one meal is a bit much.