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Why Jeter deserves $45 million but most CEOs don't
Fortune ^ | 12/08/2010 | Eric Falkenstein

Posted on 12/08/2010 6:54:59 AM PST by SeekAndFind

Derek Jeter has had a great career, but last year he hit .270 (mediocre). Nonetheless, he's fielding offers like $45 million for 3 years.

Yet no one seems very angry about exorbitant pay in athletics, as compared to CEOs. Here's Holman Jenkins over at the WSJ:

Said one fan on a New York paper's website: "As far as the money is concerned, I really don't care what they pay him. It's not my money." If it were catching, this healthy-minded attitude toward the paychecks of our fellow man would make the world a better, happier place.

Jeter clearly has alpha in a narrowly defined sphere that most of us recognize. We can see he is good at what he does--much better than us or most anyone else--and thus he earns his pay. In contrast, the suspicion is that CEOs are merely involved in a massive crony-capitalism game that discriminates against those who don't have the right family and friends. That strikes many as unfair.

Former Clinton Attorney General Jamie Gorelick made $40 million while running Fannie Mae (FNMA) and the mortgage market into the ground. Rahm Emmanuel made $16.2 million in his two-and-a-half-years as an investment banker. Bob Rubin pocketed $150 million while working for Citigroup (C). The list goes on and on (recent OMB director Peter Orszag was just hired as an investment banker by Citibank). These are problematic because we know they are getting paid merely for access--Rubin claims he was totally unaware Citi had $54 billion in mortgages on its balance sheet, which was probably true--for getting the right person to answer a phone, or bury some exception in the latest 2000-page bill or trade agreement. That's a game not available to most of us.

(Excerpt) Read more at finance.fortune.cnn.com ...


TOPICS: Business/Economy; Society; Sports
KEYWORDS: ceo; derekjeter
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To: ClearCase_guy
Sounds a bit like Joe Louis. A wonderful athlete, he was extremely generous with his money and fully supportive of the US military during World War Two. But when he returned to civilian life after the war, the IRS hit him with a bill for $100,000 (this was later increased to $500,000 after he'd paid off the $100,000).

He broke his health and spirit struggling to pay off these debts, spiraling into a self-destructive drug habit that hastened his end.

When he died in April 1981, President Reagan waived the combat requirements for burial in Arlington (Louis was in the Special Services Division, where he entertained the troops with exhibition matches) and his pallbearers were some of his best friends and greatest opponents from his boxing career. He is remembered for his grace and honor even when it appeared that the entire world was trying to tear him down.

21 posted on 12/08/2010 9:08:40 AM PST by Stonewall Jackson (Democrats: "You will never find a more wretched hive of scum and villainy.")
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To: DesertRhino

Here’s the thing about Jeter (or say, Lebron James) — People PAY to watch them play.

Baseball or basketball would not be as interesting ( and consequently, people would not PAY ) if not for athletes like Jeter and Lebron.

In other words, they get paid BECAUSE their teams do well.

Converseley, I do not mind a CEO being paid tens of millions IF their company is profiting and doing well for shareholders. It is almost impossible to justify on the other hand, the outrageous salaries people like Jamie Gorelick make, much less the millions of dollars in severance given to CEO after their companues go under.


22 posted on 12/08/2010 9:08:41 AM PST by SeekAndFind
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To: SeekAndFind
Does D.J. demand he bats at the top of the order?

with a .270 average... batting #1 or 2 ain't going to cut it.

I wonder if part of these salary negotiations was an agreement he would have to "settle" for batting lower in the order... at least until his average is consistently over .300.

23 posted on 12/08/2010 9:12:37 AM PST by Trajan88 (www.bullittclub.com)
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To: angcat

Oh MEOW


24 posted on 12/08/2010 10:57:44 AM PST by geege
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To: geege

MEOWWWWWWWW!

Swish is getting married on Saturday.


25 posted on 12/08/2010 11:19:24 AM PST by angcat (DEAR GOD PLEASE SAVE OUR COUNTRY!)
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To: angcat
Sorry, I'm a Red Sox Fan...

Jeter drinks wine coolers Pictures, Images and Photos
26 posted on 12/08/2010 12:07:26 PM PST by marine86297 (I'll never forgive Clinton for Somalia, my blood is on his hands)
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To: marine86297

LOL


27 posted on 12/08/2010 12:23:31 PM PST by angcat (DEAR GOD PLEASE SAVE OUR COUNTRY!)
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