Monday, March 12, 2012

Will pay gazillions for linsanity. But, not a dime for CEOs?

I have ranted blogged many times about the ridiculousness in the supersized payouts for athletes, actors, singers and other entertainers (like here).  And pointed out the irony in the ardent supporters of these gazillionaires being vehement critics of corporations and their CEOs.  But, who cares for what Sriram says, right?

But, what about when the eminently qualified Ken Rogoff makes that same point?  Will you listen to him then?  If so, here is what he writes:
What amazes me is the public’s blasé acceptance of the salaries of sports stars, compared to its low regard for superstars in business and finance. Half of all NBA players’ annual salaries exceed $2 million, more than five times the threshold for the top 1% of household incomes in the United States. Because long-time superstars like Kobe Bryant earn upwards of $25 million a year, the average annual NBA salary is more than $5 million. Indeed, Lin’s salary, at $800,000, is the NBA’s “minimum wage” for a second-season player. Presumably, Lin will soon be earning much more, and fans will applaud.
Yet many of these same fans would almost surely argue that CEOs of Fortune 500 companies, whose median compensation is around $10 million, are ridiculously overpaid. 
The US values entertainment way too much for its own good.  But, hey, that is the story within academia too--football and basketball rule, while the liberal arts get flushed down the dirtiest toilet :(

Oh well ...

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