AES was founded in 1981 by Roger Sant and Dennis Bakke, originally supplying consulting

services to the energy industry, the company began operating its first power pkant in Housten
in 1986 and went public in 1991. The company saw itself as “the global power company” and
had as its mission “supplying electricity to customers world-wide in a socially responsible way.”

AES has a set of core assumptions about people that it tries to use in designing and managing
its organitazion. These assumptions are that AES people:
1. Are creative, thinking individuals capable of learning and making decisions, like to
control their environment and can be trusted;
2. Are responsible, can be held accountable
3. Are fallible
4. Desire to make positive contributions to society, associate with a winner and a cause,
like a challenge
5. Are unique persons, deserving respect, not numbers or machines

AES also has had a strong set of core values and beliefs about people, the four core values are:
1. Integrity
2. Fairness
3. Social Responsibility
4. Fun

Although maximizing profits or shareholder value is not the primary objective of the
corporation, but thanks to the four values the company habeen very financially successful. The
firm enjoyed a 105% growth in revenues between 1991 and 1995 and during that period grew
its earnings per share more than 113% while its total assets grew almost 70% and its
shareholders equity grew 289%.

Hiring is done by plant personnel without the support of any staff human resource people,
because there aren’t any. The hiring process can take from one week to a month and a half, but
in any event takes a long time. The interviewers typically don’t ask technical questions. The
hiring process essentially seeks people who will fit the company. AES believing that getting the
right people is key to the company’s success, and are actively involved in it. Interviewing is done
by a cross section of all of the levels, not just the plant manager or the superintendents.

Pay is determined by looking at what others are being paid, both inside and outside of the
company. There is no set salary schedule for each job and salaries are not public.

The plant and the corporation take performance problems seriously and do everything possible
to help individuals improve. People get every opportunitu to correct mistakes.

AES has no formal policy of job security, security is in the skills and abilities that people develop
while they are working at the company.
The Corporation as a whole has moved towards an all salaried system in which no one is paid by
the hour