A new day, a new say on AIG pay.
Insurance giant American International Group said today that it plans to roll out a new compensation plan that pays employees based on a ranking system.
Drafted by AIG CEO Robert H. Benmosche, the new plan, dubbed a “forced ranking,” employs a numerical system that ranks employees based on performance and tabulates bonuses accordingly.
Some believe that Benmosche’s tweak to AIG’s compensation is mostly window dressing, especially since the firm already had a similar model in place. General Electric has a similar system in place.
AIG has been at the center of the public furor over compensation since it was revealed in 2008 that AIG planned to pay out whopping bonuses to some of the very same employees that helped imperil the company — and that was after it accepted some $182.3 billion in rescue funds, making Uncle Sam its majority shareholder.
Recently, the insurer said that it would pay employees about $100 million — scaling back on plans to pay double that number.