Re:How People Get Rich Now
by WalterBright on Monday April 12, 2021 @04:30PM
(#26784763)
You don't think that CEOs also have a lot of performance related clauses? Stock options are, for example.
They get paid more for good performance but they don't get paid less for bad performance.
Athlete contracts on the other hand are fixed. If the athlete does well the team organization gains the benefit. If the athlete does poorly the athlete may be fired or transferred. And there is no gold parachute when they are cut.
So I don't recognize the similarities between CEO and pro athlete compensation at all.
Re:How People Get Rich Now
by bobthepanda on Monday April 12, 2021 @06:22PM
(#26785918)
In practice compensation clawback can be quite difficult. https://hbr.org/2021/03/why-executive-compensation-clawbacks...
I know in the NFL, a lot of those contracts have clauses big enough to drive a dump truck through. Many of those million dollar football contracts are back loaded to only pay out if the athlete competes the full term [0]. Winning and losing games is definitely tied to whether they stay or are cut.
Unlike a CEO, a poor performing athlete has no golden parachute to fall back to.
[0] https://www.pff.com/news/nfl-salary-cap-terms-tricks-to-know...