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We can impose salary caps--it just means that the people who are really good at this stuff will play in a different league. If there were another NBA where LeBr
by moduspwnens14 10y ago
We can impose salary caps--it just means that the people who are really good at this stuff will play in a different league. If there were another NBA where LeBron would make 10x his salary, he'd play in it. All the best players would. And then that league would be more successful.
Now instead of "league" and "LeBron," substitute in "country" and "the world's best corporate executives" and you'll see why it's a bad idea. We want the world's best here.
- BrandonM 10y agoThere are other professional basketball leagues that don't have salary caps, and LeBron doesn't play for them. The NBA salary cap is close to or exceeds what he could make in other leagues. Additionally, playing for the NBA gives him greater exposure to the American market. Do you have any countries in mind that are going to pay executives more per year than the US, even with a salary cap? My understanding is that the US is already so far above the rest of the world that it would have to come way down to lose out on a raw compensation basis. IMO, a cap would mostly serve to rein in the well-networked, measurable-performance-leveraging aspects of CEO compensation. Compared to every other employee, CEOs have a far greater ability to extract money from a company, mostly independent of their contributions to that company. Is it any surprise, then, that they leverage that ability to earn far more than their coworkers?