Lets say we all work in an auto plant. You run the pickup truck line and another guy runs the 4 door sedan line. The pickup truck line is fabulously successful and sells out every unit you can build. The 4 door sedan line has all kinda problems, shut down half the time, and cant sell much of what they do get out the door.
Between the two lines the company's bottom line is a big loss. Do you want YOUR bonus and compensation limited/restricted because of the problems the company has on the 4 door sedan line, which you are not in charge of?
Thats whats going on at AIG, they sell a LOT of different financial and insurance products and many of them are VERY profitable. Those producers need to be compensated for their accomplishments. The bonuses were part of their compensation agreement. Instead of just paying them $XXXXXX dollars up front, part of it is held back and they only get it if they produce a certain result.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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