This will be the 8th negative surprise out of 11 since BD came on board. NICE!
4 replies (most recent on top)
A LOT of institutional knowledge and good management has either fled or been shown the door. This company is full of high level execs who are new, Young hires a few years out of school and disgruntled, underpaid vets ducking and hiding to avoid being RIFfed until retirement or the next good opportunity elsewhere. Not a formula for long term success!
AIG execs have substantial multimillion compensation packages with guaranteed bonuses over the next several years even if the company continues to lose money. The average workers and managers continue to get squeezed, if they are “lucky” enough to even still be there. Lucky in quotes as I know they are very short handed. Too many CEO’s and other C-level execs...not a sustainable model...almost no one left to do the work!
I would expect another down report in February. The California wildfires will definitely have an impact as well. Those were multi million dollar that went up. They will still be counting the last storm in as well. It will be interesting to see at the next town hall if BD says anything about the STI bonuses for 2019. Their has been nothing said about them and that is not normal. If the workers dont get anything neither should the leadership. They are cutting so many programs and not writing much business at all. Good luck AIG.
Expect a lot of discussion on the conference call about the 3rd and 4th quarter losses somewhat mitigated by reinsurance. The very reason AIG bought Validis for 5.56B last year. We may find out the exposure to the CA Wildfires too. AIG's solution is to cut and take no risks. These RIF's are putting tremendous pressure on downsized units and impacting efficiency. The future is Cognizant automation. Forget offshoring. They want to replace employees with machines. I fail to understand why anyone would want to do business with AIG under these circumstances. That's the plan in less than two years.