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 - Tractor Implements and Their Use - by Curtis Von Fange. Dad was raised during the depression years of the thirties. As a kid he worked part time on a farm in Kansas doing many of the manual chores. Some of the more successful farmers of that day had a new time saving device called a tractor. It increased the farm productivity and, in general, made life easier because more work could be done with this 'mechanical beast'. My dad dreamed that some day he would have his own tractor with every implement he could get. When he reached his early sixties
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