Once again, I'm going to take something to do in the world of sports and turn it into something to do with business, I hope. That's a bit of theme with me, isn't it?
Last night, the Washington Redskins gave Donovan McNabb, a man who is going to be 34 in about a week, a 5 year contract for $78 million dollars. He rewarded the Redskins for their confidence with an awful performance as my Eagles rolled to a 59-28 victory. The quarterback is like the CEO of the team on the field, and there has been a great deal of controversy in the last few years about CEO's and their pay scale. (See what I did there?) Many of these deals that CEO's sign with their companies are for salaries that are very high, but not nearly as exorbitant as people think. Where they make their money is in the giant bonuses that are in their contracts for things like stock price, productivity, or other measurable metrics that lead to a CEO picking up a check for a cool $10 million.
Relating it back to the game, McNabb was downright awful, and the Redskins have the option to release him and only pay him $3.5 million for his services. When many of these CEOs get fired, they have giant parachutes that the company is obligated to give them, so that they leave the company in worse shape with millions of dollars and stock options. It doesn't seem quite fair that you and I get fired when we do our jobs poorly, but when these people are let go after driving entire companies into the ground, they take enough money with them to be set for life.
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