3 ms·

I agree that its not a great deal for shareholders, but I can see how we got here. It works similar in sports, if there is a 33 year old free agent superstar,

by jayski 4y ago

I agree that its not a great deal for shareholders, but I can see how we got here. It works similar in sports, if there is a 33 year old free agent superstar, every team is willing to give them a 2 year 80million dollar deal (40 per year). So the competition becomes who is willing to guarantee 40 for a 3rd, 4th year. It may not be a great long term decision for the team, but if they dont agree to those unfavorable terms they're simply not getting the player. I wonder if there were other companies willing to offer similar payment packages to this CEO and the competition become who would guarantee the money without asking for performance goals.

manuelabeledo 4y ago
> It works similar in sports... Main difference here is that the average career span of a pro athlete very rarely reaches 20 years, and deal numbers tend to decrease with age. Executives don't have that problem, in fact it's quite the opposite.
- kungito 4y ago
  Is that actually true? Do these rockstar CEOs get the same compensations when they reach 60? They also start getting those paychecks later in their 30s compared to sport players
  - manuelabeledo 4y ago
    > Do these rockstar CEOs get the same compensations when they reach 60? The average age of a CEO in 2018 is 54 years old [1], so I would say yes, they do. The average salary for a CEO in a top 350 company was $13.9M [2]. > They also start getting those paychecks later in their 30s compared to sport players Compared to the average NFL player ($860,000) [3], and the average retirement age is 27 years old [4], which essentially means that an average NFL player makes perhaps 5 to 6 million dollars in their whole career. Other more forgiving sports, like NBA, puts players on an average of $8 million [5], and an average retirement age of 28 [6], so around 6-7 seasons. It's worth remembering that these are highly paid professional athletes who most likely come from college teams, meaning that they weren't paid at all. A CEO, on the other hand, doesn't spend their previous years as an unpaid intern. They are usually top executives already. In short, CEOs do get paid better on average than professional athletes, all things considered. [1] https://www.statista.com/statistics/1097551/average-age-at-hire-of-ceos-and-cfos-in-the-united-states/ https://www.statista.com/statistics/1097551/average-age-at-h... [2] https://www.epi.org/publication/ceo-pay-in-2020/#:~:text=This%2018.9%25%20increase%20from%202019,below%20its%20level%20in%202019 https://www.epi.org/publication/ceo-pay-in-2020/#:~:text=Thi.... [3] https://work.chron.com/much-money-nfl-player-make-year-2377.html https://work.chron.com/much-money-nfl-player-make-year-2377.... [4] https://investingfuse.com/retirement/average-retirement-age-for-nfl-football-players-by-position/#:~:text=The%20average%20retirement%20age%20of,health%20concerns%2C%20and%20skill%20level https://investingfuse.com/retirement/average-retirement-age-.... [5] https://www.statista.com/statistics/1120257/annual-salaries-nba/#:~:text=Over%20the%20past%20years%2C%20NBA,to%203.67%20billion%20U.S.%20dollars https://www.statista.com/statistics/1120257/annual-salaries-.... [6] https://www.rbcwealthmanagement.com/en-us/insights/professional-athletes-need-a-retirement-game-plan https://www.rbcwealthmanagement.com/en-us/insights/professio...

by jayski 4y ago

manuelabeledo 4y ago

> It works similar in sports... Main difference here is that the average career span of a pro athlete very rarely reaches 20 years, and deal numbers tend to decrease with age. Executives don't have that problem, in fact it's quite the opposite.

kungito 4y ago
Is that actually true? Do these rockstar CEOs get the same compensations when they reach 60? They also start getting those paychecks later in their 30s compared to sport players
- manuelabeledo 4y ago
  > Do these rockstar CEOs get the same compensations when they reach 60? The average age of a CEO in 2018 is 54 years old [1], so I would say yes, they do. The average salary for a CEO in a top 350 company was $13.9M [2]. > They also start getting those paychecks later in their 30s compared to sport players Compared to the average NFL player ($860,000) [3], and the average retirement age is 27 years old [4], which essentially means that an average NFL player makes perhaps 5 to 6 million dollars in their whole career. Other more forgiving sports, like NBA, puts players on an average of $8 million [5], and an average retirement age of 28 [6], so around 6-7 seasons. It's worth remembering that these are highly paid professional athletes who most likely come from college teams, meaning that they weren't paid at all. A CEO, on the other hand, doesn't spend their previous years as an unpaid intern. They are usually top executives already. In short, CEOs do get paid better on average than professional athletes, all things considered. [1] https://www.statista.com/statistics/1097551/average-age-at-hire-of-ceos-and-cfos-in-the-united-states/ https://www.statista.com/statistics/1097551/average-age-at-h... [2] https://www.epi.org/publication/ceo-pay-in-2020/#:~:text=This%2018.9%25%20increase%20from%202019,below%20its%20level%20in%202019 https://www.epi.org/publication/ceo-pay-in-2020/#:~:text=Thi.... [3] https://work.chron.com/much-money-nfl-player-make-year-2377.html https://work.chron.com/much-money-nfl-player-make-year-2377.... [4] https://investingfuse.com/retirement/average-retirement-age-for-nfl-football-players-by-position/#:~:text=The%20average%20retirement%20age%20of,health%20concerns%2C%20and%20skill%20level https://investingfuse.com/retirement/average-retirement-age-.... [5] https://www.statista.com/statistics/1120257/annual-salaries-nba/#:~:text=Over%20the%20past%20years%2C%20NBA,to%203.67%20billion%20U.S.%20dollars https://www.statista.com/statistics/1120257/annual-salaries-.... [6] https://www.rbcwealthmanagement.com/en-us/insights/professional-athletes-need-a-retirement-game-plan https://www.rbcwealthmanagement.com/en-us/insights/professio...