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> top athletes getting contracts paying them millions of dollars whether or not they continue to win games. I know in the NFL, a lot of those contracts have cl
by yardie 6y ago
> top athletes getting contracts paying them millions of dollars whether or not they continue to win games.
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-ahead-of-nfl-free-agency-2021 https://www.pff.com/news/nfl-salary-cap-terms-tricks-to-know...
- WalterBright 6y agoYou don't think that CEOs also have a lot of performance related clauses? Stock options are, for example.
- bobthepanda 6y agoIn practice compensation clawback can be quite difficult. https://hbr.org/2021/03/why-executive-compensation-clawbacks-dont-work https://hbr.org/2021/03/why-executive-compensation-clawbacks...
- yardie 6y agoThey 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.