We hear a lot about how executive compensation for CEO's is out of control and unwarranted.
It is argued that it is inequitable that so few individuals can earn so much.
30 CEO's of the 500 companies that are in the S&P 500 index on the New York Stock Exchange made at least $30 million last year.
This was reported in an article in The Wall Street Journal in July.
Hers is an excerpt from the compensation list down to and just beyond the $30 million income level.
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| Source: https://www.wsj.com/articles/meet-the-ceos-who-pull-in-more-than-100-million-a-year-8409afe0 |
Notice that the CEO's of Cisco Systems ($53 billion in revenues, 79,500 employees), T-Mobile ($80 billion in revenues, 75,000 employees) and General Motors ($157 billion in revenues, 155,000 employees) did not break the $30 million level.
By contrast, here is the list of NBA players who made at least $30 million this past season.
It numbers 39.
I am not sure how many on this list could manage a $50+ billion or 75,000+ employees.
I do know that they are among the world's greatest athletes.
NBA players have to possess elite quickness, agility, jumping ability and eye to hand coordination for starters.
It does not hurt to be 6'6" or taller and have a wing span that is even longer.
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| Source: https://www.espn.com/nba/salaries/_/year/2023/seasontype/4 |
Yes, more NBA players made at least $30 million in compensation in the last year than did the CEO's of the largest public companies in the United States.
Next season the number of players making at least $30 million is expected to increase to 44 based on contracts already in effect.
What is also worth noting is that almost every player on this list is African-American or an immigrant from another country.
I believe Gordon Hayward is the only White American-born player on this list that is making at least $30 million.
What does all of this tell us?
Could it be there is no better place in the world for economic opportunity than in the United States of America for minorities, immigrants or natural born citizens?
Could it be that the natural forces of supply and demand bring about the best allocation of resources and results?
Could it be that there are fewer 6'6'' and taller men who can jump through the roof and hit shots from 30 feet than Harvard MBA's suited to run a large company?
Could it be that there is not as much economic injustice in the United States as is stated when you see data like this?
I am forever amazed when people talk about “taxing the rich” the most targeted audience are CXO titles. Rarely does the conversation extend to the less socially redeeming wealthy that include athletes, social influencers, and the pop culture famous. It’s ironic that the vast majority of these people support the very politicians that advocate for such treatment. Another great read!
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