Are you a 4? AIG said to be rolling out rating system for incentive comp
American International Group Inc. is launching a plan to revamp how it arrives at incentive pay for its workers, according to the NY Times.
American International Group Inc. is launching a plan to revamp how it arrives at incentive pay for its workers, according to the NY Times.
The new plan is called a “forced distribution” system. According to the Times, the scheme is being championed by CEO Robert Benmosche.
The paper said the thousands of AIG employees will be ranked on a scale of 1 to 4. The rating will be based on their performance relative to their peers. Employees’ annual variable compensation, which may include bonuses, will be determined by their rank. Workers rated in the top 10% will get far more comp than their colleagues.
The plan is a big change for the insurer, which is moving away from retention bonuses that have been roundly criticized over the past year.
It’s not clear yet whether the plan will apply to the insurer’s financial advisers.
[InvestmentNews will update this story as more information becomes available]
Learn more about reprints and licensing for this article.
