Pretty standard for a US company
We have a forced ranking system, top 10% get a pay rise, middle 80% get a token pay rise, bottom 10% get put on a performance plan and get the boot 12 months later or as soon as the company feel they can do it without getting sued. You should see out management structure though, it's a thing of beauty, it must have been based on the design for the Eiffel tower it even has a dotted line lattice work!