Staff are leaving after “can’t all win medals” bonus system
AIG is basing bonuses and incentive pay on its new "forced ranking" system that measures the performances of about 10,000 employees, but is struggling to keep staff at the company, the Wall Street Journal reports.
The last few months have already seen the departures of some senior managers in divisions such as compliance, legal and human resources, the WSJ said.
AIG chief executive Robert Benmosche is trying to demonstrate to the public and the government that AIG is paying employees for their performance and not just for staying at the company.
Going for Gold
Benmosche reportedly told employees, the company needed to improve its old system, where most of AIG's top 500 employees were deemed either "top" or "excellent" performers.
He said Winter Olympics finalists all performed well, but they couldn't finish the race at the same time and all win medals.
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