Wanna be a company man?

The Fake Lonnie Finch · February 14, 2014

Quarterly revenue of $8.62 billion - shareholders rewarded, employees fired...but, will continue to invest in its people.

http://www.ibamag.com/news/major-insurer-will-fire-1600-workers-17276.aspx

"Property/casualty insurer American International Group says it will reduce its global workforce by approximately 3% by the end of the year.

....

Benmosche hopes the severance change will help balance AIG’s balance sheet and streamline the organization, as well as reward company shareholders. Most of the job losses are expected to be in AIG’s property/casualty division, which the insurer hopes to centralize in more low-cost locations.

'We will continue to invest in our people with a competitive pay structure that rewards performance and provides opportunities that enable more internal mobility,' Benmosche added.'"

Yes, when you let 1,600 people go, it does tend to free up some positions internally.

Mean Green 93-98 · February 14, 2014

This guy could teach "Spin 101" at any university in the nation.

CMJ · February 14, 2014

Reminds me of about six or seven years ago. The company I work for had massive layoffs in two stages, about ten months apart. Just my department lost about 40% of its staff! About six weeks after the 2nd round of layoffs, there was a company meeting, where they talked about that because of expense cutting measures, we were having one of our most profitable years ever. Also mentioned that we'd each have to do more in our jobs now (this was also the year that nobody got raises btw).

I was like, "No shit...you just fired half the company to save money."

Edited February 14, 2014 by CMJ

The Fake Lonnie Finch · February 14, 2014

This is why you have the stock market doing well, but the middle class still struggling. It's the great myth of the stock market doing well being a good indicator of how the economy is going for the huddled masses. Good stock market doesn't always mean good economic fortunes for all.

I certainly don't mean to pick on AIG, but look...this is what many companies do to "right the ship" financially. I think this particular example is noteworthy because AIG is not having a tough time financially right now. Insurers had it light in 2013 with very few catastrophes.

The reward for 1,600 company men and women who helped AIG's shareholders is...pink slips.

Edited February 14, 2014 by The Fake Lonnie Finch

gksmith · February 21, 2014

The other part of the layoffs - there is no corresponding reduction in work. The remaining employees have to pickup the work of the ones laid off. Basically each person has to do the work of 4-5 people. Would there be a corresponding increase in pay to go along with that increase in work...no.

CEO is the greatest job in America. Run your company into the ground, layoff thousands of workers, lose millions (if not billions) of dollars for the company, get paid millions of dollaars - get multi million dollar bonus.

MeanGreenTexan · February 21, 2014

This is why you have the stock market doing well, but the middle class still struggling. It's the great myth of the stock market doing well being a good indicator of how the economy is going for the huddled masses. Good stock market doesn't always mean good economic fortunes for all.
I certainly don't mean to pick on AIG, but look...this is what many companies do to "right the ship" financially. I think this particular example is noteworthy because AIG is not having a tough time financially right now. Insurers had it light in 2013 with very few catastrophes.
The reward for 1,600 company men and women who helped AIG's shareholders is...pink slips.

Bingo.

Shareholders only care about the bottom line though. Sadly, somewhere along the way it became more important to pay your shareholders than your employees. And we wonder where alot of the "well, get off your lazy rear and go find another job" mindset comes from?

UNTFan23 · February 21, 2014

CEO is the greatest job in America. Run your company into the ground, layoff thousands of workers, lose millions (if not billions) of dollars for the company, get paid millions of dollars - get multi million dollar bonus.

I guess the other option to not laying off a percentage of a company's workforce is to just let the company fail altogether resulting in 100% of the workers losing their jobs. I guess that's not running a company into the ground, is it?

GreenMachine · February 22, 2014

The other part of the layoffs - there is no corresponding reduction in work. The remaining employees have to pickup the work of the ones laid off. Basically each person has to do the work of 4-5 people. Would there be a corresponding increase in pay to go along with that increase in work...no.

CEO is the greatest job in America. Run your company into the ground, layoff thousands of workers, lose millions (if not billions) of dollars for the company, get paid millions of dollaars - get multi million dollar bonus.

Too bad companies can't be like the govt. Keep non productive employees on the payroll for life, spend taxpayer money frivioulously, and when that money runs out, just print some more.

gksmith · February 22, 2014

I guess the other option to not laying off a percentage of a company's workforce is to just let the company fail altogether resulting in 100% of the workers losing their jobs. I guess that's not running a company into the ground, is it?

Too bad companies can't be like the govt. Keep non productive employees on the payroll for life, spend taxpayer money frivioulously, and when that money runs out, just print some more.

You missed the point.

If the salary and bonus are reasonable you don't have to lay off workers. Incompetance should not be rewarded with a huge salary and huge bonus. That is why they call is a "BONUS." You get extra money for doing a superior job - like not running the company into the ground.

Edited February 24, 2014 by gksmith

UNT90 · February 22, 2014

You missed the point.

If the salary and bonus are reasonable you don't have to lay off workers. Incometance should not be rewarded with a huge salary and huge bonus. That is why they call is a "BONUS." You get extra money for doing a superior job - like not running the company into the ground.

It's a market economy. The market decides what those bonuses are going to be.

Don't like it? Study harder, get a masters in business, work your way up and become a CEO.

Better yet, start your own company and decide who gets laid off and who doesn't.

If you can afford the health care for your employees, that is.

oldguystudent · February 22, 2014

If you can afford the health care for your employees, that is.

The Obamacare loophole -- it requires EMPLOYEE coverage. So I know that my company pays $400 a month for my healthcare. Kinda steep, I suppose. But they offer nothing for spouse or dependents. You pay the whole premium for that. Such is the trend in just about every company out there. My last firm, it was cheaper for me to just hit the open market for my kid's insurance. New joint is a bit more reasonable, or, rather, same premium as open market Obamacare, but with half the deductible.

gksmith · February 24, 2014

It's a market economy. The market decides what those bonuses are going to be.
Don't like it? Study harder, get a masters in business, work your way up and become a CEO.
Better yet, start your own company and decide who gets laid off and who doesn't.
If you can afford the health care for your employees, that is.

Bush started the idea of the "Stimulus." Obama followed through on the promise and paid the companies...who in turn took the millions and paid bonuses to incompetant CEOs. Again, a bonus is for doing good work. If your company is losing millions how is that good work?

As for the Affordable Care Act, funny how it seems to work really well in states with democratic governors and suck for states with republican governors (like Texas). Free government money to make sure your uninsured are covered. The only reason Rick Perry has not gone through the process is he wants to make Obama appear weak...at the cost of the uninsured in our state.

GreenMachine · February 24, 2014

Bush started the idea of the "Stimulus." Obama followed through on the promise and paid the companies...who in turn took the millions and paid bonuses to incompetant CEOs. Again, a bonus is for doing good work. If your company is losing millions how is that good work?

As for the Affordable Care Act, funny how it seems to work really well in states with democratic governors and suck for states with republican governors (like Texas). Free government money to make sure your uninsured are covered. The only reason Rick Perry has not gone through the process is he wants to make Obama appear weak...at the cost of the uninsured in our state.

"Free government money" Please explain what that is. Do you mean tax payer money?

gksmith · February 24, 2014

"Free government money" Please explain what that is. Do you mean tax payer money?

In that respect everything is "Tax Payer Money."

Not to get off of the subject but the Affordable Care Act is a program to reform medical insurance from the totally broken system it is before to one that benefits everyone. If you think that the previous system works better you have not been paying attention or you are blessed without having medical problems. My wife is part of the school district and she pays an arm and a leg for NOTHING for health care. The Affordable Care Act would probably work better for her. It is piracy that the state government cannot get her decent and affordable health care because of politics, stubbornness, and plain stupidity.

GreenMachine · February 24, 2014

In that respect everything is "Tax Payer Money."

Not to get off of the subject but the Affordable Care Act is a program to reform medical insurance from the totally broken system it is before to one that benefits everyone. If you think that the previous system works better you have not been paying attention or you are blessed without having medical problems. My wife is part of the school district and she pays an arm and a leg for NOTHING for health care. The Affordable Care Act would probably work better for her. It is piracy that the state government cannot get her decent and affordable health care because of politics, stubbornness, and plain stupidity.

I agree BUT I very little faith the govt can implement and run anything smoothly, effectively, or efficient. That is not a political statement at all but a reflection that ALL politicians are inept.

UNT90 · February 24, 2014

Free government money.

Yep. No doubt you are a democrat.

FirefightnRick · February 24, 2014

In that respect everything is "Tax Payer Money."

Not to get off of the subject but the Affordable Care Act is a program to reform medical insurance from the totally broken system it is before to one that benefits everyone. If you think that the previous system works better you have not been paying attention or you are blessed without having medical problems. My wife is part of the school district and she pays an arm and a leg for NOTHING for health care. The Affordable Care Act would probably work better for her. It is piracy that the state government cannot get her decent and affordable health care because of politics, stubbornness, and plain stupidity.

"Fourth Georgia Hospital Closes Due To Obamacare Payment Cuts".

http://www.times-herald.com/Local/20140219-hospital-closing2014-02-19T10-28-07

Rick

Edited February 24, 2014 by FirefightnRick

gksmith · March 13, 2014

Nathan Deal - ® Governer of Georgia

There is the problem with the Georgia hospital closing. Rick Perry does the same thing in Texas. Refuse to extend the Medicare to make The Affordable Care Act not work properly. They would rather deny decent healthcare to millions in their state in an effort to make the President look weak and the ACA weaker so they can claim the old "I told you so."

Another selfish act by the Party of No.

Republicans fear the ACA because it will WORK! Even Orrin Hatch (R - Utah) said that if ACA passes, it will suceed and no one will vote Republican for decades.

Edited March 13, 2014 by gksmith

UNT90 · March 13, 2014

Lol.

Pure political drivel.

But... Thanks...?

UNTFan23 · March 13, 2014

Nathan Deal - ® Governer of Georgia

There is the problem with the Georgia hospital closing. Rick Perry does the same thing in Texas. Refuse to extend the Medicare to make The Affordable Care Act not work properly. They would rather deny decent healthcare to millions in their state in an effort to make the President look weak and the ACA weaker so they can claim the old "I told you so."

Another selfish act by the Party of No.

Republicans fear the ACA because it will WORK! Even Orrin Hatch (R - Utah) said that if ACA passes, it will suceed and no one will vote Republican for decades.

Actually, states have nothing to do with Medicare. It is Medicaid that some states are not agreeing to extend benefits. The problem stems from the fact that on the front end the federal government is paying a large chunk of money for the extension but over time the states will be responsible for more and more of the funding for the in-state Medicaid programs. The only way to fund the extension of the Medicaid insurance is to cut other programs or raise taxes.

Edited March 13, 2014 by UNTFan23

Green Mean · March 13, 2014

Again the fighting is always who is going to pay for it but the bottom line for me is actual cost of healthcare. The prices are out of control and continuing to do so. I'm no expert in this but I think most can agree regardless of party affiliation that serious reform is needed to control the actual cost of healthcare.

The Fake Lonnie Finch · March 13, 2014

Again the fighting is always who is going to pay for it but the bottom line for me is actual cost of healthcare. The prices are out of control and continuing to do so. I'm no expert in this but I think most can agree regardless of party affiliation that serious reform is needed to control the actual cost of healthcare.

At that point, you are asking pharma companies, doctors, and attorney to reign themselves in. That isn't going to happen. Pharma and doctors have big lobby groups. And, most of the politicians are attorneys, so they're not going to throw themselves under the bus.

Therefore, politicians go for the low hanging fruit - passing the cost along to middle America.

The criminals, in this health care scenario, are those of us who had "thin/skinny/catastrophe" plans:

-How dare we be in our forties and fifties, families already set, and not have maternity coverage.

-How dare we stay sober and not have coverage for substance abuse counseling.

-How dare we eat properly, exercise, feed our kids properly and keep them active so that we and they do not become obese and become diabetic.

The reward for living clean and your wife being past childbearing years is high premiums, high dedudctibles, coverages we don't need, and a smaller list of doctors.

gksmith · March 15, 2014

Agree that the system is broken. That is why the government is stepping in to reform it and give relief to those who need it.

Government reform of the system is incentive enough to enact change on your own. The government threatened to take a heavy hand in Major League Baseball and Steroids. Baseball quickly made changes themselves just to keep Government out of it. The writing was on the wall for pharmaceutical companies, hospitals, doctors. They chose not to change the system and they chose poorly.

As for states and extending Medicare - that is the option of the ACA. The states with republican governers are electing not to extend Medicare. Those are the states that are having problems.

UNT90 · March 15, 2014

Agree that the system is broken. That is why the government is stepping in to reform it and give relief to those who need it.

Government reform of the system is incentive enough to enact change on your own. The government threatened to take a heavy hand in Major League Baseball and Steroids. Baseball quickly made changes themselves just to keep Government out of it. The writing was on the wall for pharmaceutical companies, hospitals, doctors. They chose not to change the system and they chose poorly.

As for states and extending Medicare - that is the option of the ACA. The states with republican governers are electing not to extend Medicare. Those are the states that are having problems.

Lol. The "government" could care less whether the system is reformed of not. Their answer was a Ponzi scheme modeled after social security. If it wasn't enacted by the "government," it would be illegal. Oh, and by "government" you mean democrat politicians and a democrat President.

It is about creating dependency. Dependency on the government, which creates additional power for the party that passed this terrible political bill disguised as "health care reform."

You can survive quite nicely in this country without ever lifting a finger to work. Need more cheese? Have another kid. Hell, claim the kid has autism and get him declared "disabled" by the age of 6. Then you will really be banking that government cheese.

Programs like "Heath care" do nothing but widen the gap between the have and have nots. Notice how the democrat "haves" in congress are exempt lot from the program? Ever stop for even one second to wonder why? Funny thing about socialism, the people who preach it rarely practice it.

Edited March 15, 2014 by UNT90