AMERICAN International Group has launched a new system to determine how employees get incentive pay, a move that follows public outcry over retention payments the bailed-out insurer made to some staff.
Under the plan, which is being pushed by chief executive Robert Benmosche, AIG will rank employees on a scale of one to four, based on how they do relative to their peers.
The top rank will go to only 10 per cent of the employees, who will be eligible to get higher incentive pay. Rank two will go to 20 per cent of the employees and rank three will be given to 50 per cent.
Those who get rank four will get minimal incentive pay. Benmosche’s plan differs from AIG’s current appraisal process in its use of an employee’s performance relative to peers. The new system is going to apply initially to several thousand of AIG’s roughly 100,000 employees.
City A.M. Reporter