> b) They get paid for the risk. Many schools pay more for a football coach than they do for the school principle. Some good points in your comment, but this o

> b) They get paid for the risk. Many schools pay more for a football coach than they do for the school principle. Some good points in your comment, but this one is off - coaches aren't getting paid for the risk. They're getting paid because talented ones bring in immense amounts of revenue and are in short supply - thus, the wages/price of coaches sets in at a high equilibrium. There's not the same scarcity of organizational administrators as there are sports coaches, which requires an extremely specialized skillset that's in high demand. Thus the, hmm, "increased revenue over alternative candidates" number is lower for principles than coaches. A lot lower. Thus, they get paid less. Rest of your comment has some good points though.