A-Roid says it was so (“PEDs”? Good grief: a roid is a roid is a roid, depending on detection capabilities). Then look at US college football coaches’ salaries. Then there’s recruiting.
Why just pick on bank executives’ pay, President Obama? Meanwhile, in the Great White North:
On the eve of Obama’s much anticipated plan, four of Canada’s top bankers got in front of the parade by proclaiming their own voluntary pay cuts totalling almost $20 million. “In light of the current state of global markets and the challenges faced by so many in Canada and around the world, I feel this decision is right for both me and the bank,” said Royal Bank CEO Gordon Nixon.
Even with the foregone pay, the Canadian bankers will still be earning well into seven figures – or much higher than Obama’s $500,000 cut-off. To be fair, however, Canada’s banks haven’t had to be saved from bankruptcy by government bailouts, like many of their American counterparts…
I’m not sure what really to think about the realities of what are pretty limited markets–in terms of those considered fit to hire. As for paying great money for great results (the purported rationale for huge, er, compensation):
Yankee fans don’t particularly care for A-Rod, either, because he has never won them a World Series, and in the Bronx what else is there?…
Let me put it another way. Some athletes avoid the risk of not being amongst the best by taking drugs (to ensure greater salaries). Some college coaches avoid the risk of not winning by cheating in recruiting (to ensure greater salaries). And some CEOs, once they have the job, seem to run no serious personal financial risk at all (great, er, compensation, is simply ensured regardless of results). Nice work if you can get it, but hardly any sort of capitalism that I recognize. Rather a golden rice bowl.