Insurance giant AIG to pay $165 million in bonuses
http://news.yahoo.com/s/ap/20090315/ap_on_bi_ge/aig_bonuses
We will discuss this a bit later, but I couldn’t help but post this. Do you buy the tournament model (we have to pay more than the rest to get the smartest people, and that by so doing we will be managed best)? Doug Smidl mentioned that it was definitely worth it to pay really “good people” 30% more. That seems to make sense at some level. But does it make sense here? Consider the following quote.
“We cannot attract and retain the best and brightest talent to lead and staff the AIG businesses, which are now being operated principally on behalf of the American taxpayers — if employees believe their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury,” Liddy said.
Now check out the performance of AIG in the last year:
http://www.google.com/finance?q=NYSE%3AAIG
Class,
Dominick found a really good article on writing a good business plan. Here is the link to the article and this may help you as you start working on your business plans.
Sahlman on buisness plan writing
Also check out this business plan article in business week on solar powered trash can. The article has a link to their business plan.
Winning business plans
There seems to be whole movement labeled Garbage 2.0. We will be facing a huge waste management crisis in the near term and is a great opportunity to create a new business on.
Making money from garbage
1. Of the strategies mentioned in the article, which ones deal with technology (supply-side) and which ones deal with increasing customer willingness to pay (deamand-side).
2. Identify two other industries besides the video game industry where these strategies will work. Why?
State your answer with claim, reasons, evidence and qualifiers.
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