Aig Overhauls Bonus System

AIG overhauls bonus system By David Goldman NEW YORK (CNNMoney.com) -- AIG announced on Wednesday that it is ever-changing the way it pays out bonuses to its employees, opting to determine compensation base on performance. Aligning pay and performance is the hallmark of many maiden organizations and is critical to our future success, AIG spokeswoman Christina Pretto said in an e-mailed statement. By do and driving our talent, it will also serve well us live competitive and ensure a strong, growing enterprise. Previously, AIG had offered some of its employees keeping bonuses based on length of service but not on performance. Those were the kinds of controversial bonuses that AIG paid to 400 employees who worked at AIG pecuniary Products, the division that wrote insurance-like contracts on banks risky assets and are blamed for the companions near collapse. AIG still has hundreds of millions of dollars left to pay in computer storage bonuses that were previously agreed upon with employees, but the company said that dismission forward, it will no longer issue those kinds of bonuses. Under the reinvigorated system, AIG employees performance will be judge and compared to their peers to determine their yearbook compensation, including bonuses.

The first step toward building a high-performance solicitude culture is implementing relative performance ratings that will compare an respective(prenominal)s performance to that of others in his or her peer group, Pretto said. These ratings will help ensure that our people are accountable, recognized and rewarded for their achievements. AIG said it is test out the new bonus plan for several potassium staff of its more than 100,000 worldwide staff members. In an converse with The Wall Street Journal, AIG Chief Executive Robert Benmosche said AIG employees overt to the new bonus structure will be graded on a scale of one to four based on their performance. Benmosche said just 10% of employees will be ranked in the highest (one)... If you want to get a full essay, order it on our website: Orderessay

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