American International Group Inc. is basing its upcoming round of bonuses and incentive pay on its new “forced ranking” system that measures the performances of about 10,000 employees, according to people familiar with the matter.
Posts Tagged ‘employee pay’
Newsfeeds
How Much Does Pay Matter?
When motivating employees, does pay matter? Of course it does. People expect to be paid for their work. But how important is pay to achieving organizational greatness? It turns out, not as important as you might think.
Newsfeeds
Salary Budget Increases Below 3% For First Time in More Than 20 Years
Published in World at Work February 10, 2010
With total salary increase budgets now barely exceeding inflation, even top performers may barely be keeping up with cost of living increases, according to The Conference Board Salary Increase Budgets for 2010—Winter Update, containing revised projections for 2010 U.S. salary budgets and salary structure adjustments.
Newsfeeds
The Wages of Recession: Average 2010 Raises Will Barely Cover Inflation
Salaried employees hoping their 2010 annual raise will provide some relief as they attempt to recover from the worst economic downturn in 80 years are likely to be disappointed: Raises for U.S. workers may barely keep pace with inflation this year.
Newsfeeds
Pay Cuts Not as Prevalent as Pay Freezes in 2009
In response to the sluggish economy, many corporations either froze or cut pay in 2009. Even as the economy starts showing signs of life, a majority plan to remain conservative when it comes to pay practices in 2010.
Newsfeeds
Wage and Benefit Growth Hits Historic Low
Wage and benefit costs, both before and after adjusting for inflation, grew more slowly in 2009 than in any year since the U.S. government began tracking data in 1982, as double-digit unemployment weakened workers’ ability to command higher pay.In the past 12 months, the cost of wages and benefits received by workers other than those employed by the federal government rose 1.5%, according to the Labor Department’s employment cost index. In the same period, consumer prices rose 2.7%.
Newsfeeds
Ailing Banks Favor Salaries Over Shareholders
Published in The New York Times January 27, 2010 by Eric Dash
Finding the winners on Wall Street is usually as simple as looking at pay. Rarely are bankers who lose money paid as generously as those who make it. But this year is unusual. A handful of big banks that are struggling in the postbailout world are, by some measures, the industry’s most magnanimous employers.
Newsfeeds
Wall Street’s Pay Shift Augurs Ill for Stockholders
The move by big banks and securities firms to dole out more stock and less cash to employees could help counter political anger about Wall Street’s pay culture. But shareholders likely will likely pay for it for years.
Newsfeeds
Goldman Sachs Sets Aside $16.2 Billion to Pay Staff
Goldman Sachs Group Inc., facing criticism from politicians and labor unions for near-record compensation, set aside $16.2 billion to pay employees, the smallest portion of revenue since the firm went public in 1999. The amount, 35.8 percent of revenue, is enough to pay each of the 32,500 employees $498,246. That compares with an average pay of $316,928 a year earlier and is down from the record $661,490 in 2007.
Newsfeeds
Morgan Stanley Allots 62% of Revenue to Employee Pay
Morgan Stanley, the world’s biggest brokerage, allocated 62 percent of revenue to pay employees in 2009, the highest ratio in more than a decade, as the firm added staff faster than it made money. The compensation and benefits expense rose 31 percent to $14.4 billion as revenue climbed 28 percent, the New York-based company said today.