Rubin to pay to use Citigroup aircraft

CitiFlight Aircraft (Falcon 900 EX, Sikorsky S-76, Global Express, and a Gulfstream G-IV) are pictured as found on a "citiflight" keyword search on Airliners.net.

NEW YORK (Reuters) -- Former Treasury Secretary Robert Rubin, who chairs Citigroup Inc.'s executive committee, has decided to pay for his personal use of the largest U.S. bank's corporate aircraft.

In a Friday regulatory filing, the bank said Rubin entered a "time sharing agreement" with its Citiflight Inc. unit that covers flights he takes for reasons other than Citigroup (Charts) business.

"Mr. Rubin's employment agreement provides him the use of corporate aircraft for all travel, business and personal," spokesman Michael Hanretta said. "He believes it is appropriate to reimburse the company for his personal travel at the maximum amount permitted under applicable regulations."

The maximum sums that Rubin can pay are set by the Federal Aviation Administration, New York-based Citigroup said.

Charles Prince, the bank's chairman and chief executive, is required by Citigroup's board of directors to use company aircraft for all air travel, Hanretta said.

Rubin's agreement is dated Thursday. It runs for one year and is renewable annually unless he or Citigroup ends it, or he leaves the company.

Rubin is also a member of Citigroup's office of the chairman. He joined the bank in 1999, after serving more than four years as President Bill Clinton's Treasury Secretary.