nyphillycombine bobby forwarded me an Associated Press report on the annual for one Mr. Bud Selig, MLB commissioner. My retort to this compensation revelation:
What do these three have in common… Three companies grossly overpaying for the services of their leaders.
Seriously, Selig received a $3 million raise (up to $17.5 million in salary). The raise alone is more than what most of the players earn in a year and significantly higher than all the other cogs in the MLB machine, but furthermore, only thee individuals in baseball earned more than him (Yankess Jeter, A-Rod and Giambi).
To put this into perspective, the league brought in $496mil (earnings before interest, taxes, depreciation and amortization) meaning Bud’s take was a commission of 3.5%. Not terrible by compensation standards. To give credit where credit is due, he did assist in turning the league around from a $50mil operating loss that threatened to collapse the league a few years back… But, considering the raise in revenue had less to do with his guidance and more to do with a number of external elements he was along for the ride for.
So, is his stewardship that good that he’s essentially out earning the product. Consider this, if each of the 30 teams AND the MLB as an operation each equally contributed to the earnings success, than each entity contributed $15.96mil of the overall $496mil earned. Bud’s salary is more than any single contributors contribution.
Think about that for a moment…