economics

March 14, 2010

AIG’s Rankings Will Weigh on Pay

Filed under: Uncategorized — ktetaichinh @ 3:46 pm
Tags: ,

AIG, which reported a $10.9 billion net loss for 2009, is struggling to incentivize employees to stay on at the government-controlled insurer after the bonuses and a final batch of retention awards are paid out in the coming weeks. The last few months have already seen the departures of some senior managers in divisions such as compliance, legal and human resources, according to a person familiar with the matter.

In a town-hall meeting with employees last month, Mr. Benmosche said he is trying to find a way to give some people raises, according to people familiar with his comments. But for that to happen, Mr. Benmosche reportedly said, the company needed to improve its old system, where most of AIG’s top 500 employees were deemed either “top” or “excellent” performers. He drew an analogy with the recent Winter Olympics, saying that finalists for the events all performed well, but they couldn’t finish the race at the same time and all win medals, the people familiar with the comments said.

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