Warning: Declaration of thesis_comment::start_lvl(&$output, $depth, $args) should be compatible with Walker::start_lvl(&$output, $depth = 0, $args = Array) in /nfs/c10/h13/mnt/143652/domains/knowhrplus.com/html/wp-content/themes/thesis_185/lib/classes/comments.php on line 0

Warning: Declaration of thesis_comment::end_lvl(&$output, $depth, $args) should be compatible with Walker::end_lvl(&$output, $depth = 0, $args = Array) in /nfs/c10/h13/mnt/143652/domains/knowhrplus.com/html/wp-content/themes/thesis_185/lib/classes/comments.php on line 0

Warning: Declaration of thesis_comment::start_el(&$output, $comment, $depth, $args) should be compatible with Walker::start_el(&$output, $object, $depth = 0, $args = Array, $current_object_id = 0) in /nfs/c10/h13/mnt/143652/domains/knowhrplus.com/html/wp-content/themes/thesis_185/lib/classes/comments.php on line 0

Warning: Declaration of thesis_comment::end_el(&$output, $comment, $depth, $args) should be compatible with Walker::end_el(&$output, $object, $depth = 0, $args = Array) in /nfs/c10/h13/mnt/143652/domains/knowhrplus.com/html/wp-content/themes/thesis_185/lib/classes/comments.php on line 0
AIG: Where Pay-for-Performance Goes to Hell in a Handbasket

AIG: Where Pay-for-Performance Goes to Hell in a Handbasket

by Frank Roche on March 18, 2009

in Economy, Pay, Pay Transparency, Performance

I’ve spent a good chunk of my career communicating about executive compensation and pay-for-performance. I believe in the variable pay model — it works. So, I’ve held back for a while commenting on AIG’s bonuses. As a friend told me yesterday, “We don’t know all the facts.” I’m sure there are many good people working at AIG. But I have to tell you, this situation with AIG paying bonuses to people who are in the unit that caused all the problems and to people who have left is where pay-for-performance goes to hell in a handbasket.

A NYT article this morning lays out the details:

The bonuses that the American International Group awarded last week were paid to 418 employees and included $33.6 million for 52 people who have left the failed insurance conglomerate, according to the office of the New York attorney general.

THEY PAID “RETENTION” BONUSES TO 52 PEOPLE WHO LEFT THE COMPANY.

First rule of pay communication: Don’t lie.

If you don’t get that one right, all the rest of the rules don’t matter.

{ 3 comments… read them below or add one }


Fatal error: Uncaught Error: Cannot assign by reference to overloaded object in /nfs/c10/h13/mnt/143652/domains/knowhrplus.com/html/wp-content/themes/thesis_185/lib/classes/comments.php:187 Stack trace: #0 /nfs/c10/h13/mnt/143652/domains/knowhrplus.com/html/wp-content/themes/thesis_185/lib/classes/comments.php(47): thesis_list_comments() #1 /nfs/c10/h13/mnt/143652/domains/knowhrplus.com/html/wp-content/themes/thesis_185/lib/classes/comments.php(31): thesis_comments->comments(Array, 4) #2 /nfs/c10/h13/mnt/143652/domains/knowhrplus.com/html/wp-content/themes/thesis_185/comments.php(25): thesis_comments->output_comments(Array, Array) #3 /nfs/c10/h13/mnt/143652/domains/knowhrplus.com/html/wp-includes/comment-template.php(1161): require('/nfs/c10/h13/mn...') #4 /nfs/c10/h13/mnt/143652/domains/knowhrplus.com/html/wp-content/themes/thesis_185/lib/classes/loop.php(102): comments_template() #5 /nfs/c10/h13/mnt/143652/domains/knowhrplus.com/html/wp-content/themes/thesis_185/lib/classes/loop.php(18): thesis_loop->single() #6 /nfs/c1 in /nfs/c10/h13/mnt/143652/domains/knowhrplus.com/html/wp-content/themes/thesis_185/lib/classes/comments.php on line 187