Felix & Howard Get Paid
Posted by Warren Peterson on February 15, 2013
“One happy King.” So reads the St. Valentine’s Day headline in a Seattle Times’ sports page article on Felix Hernandez’s new seven-year $175 million contract. Twenty-five million per year for pitching in maybe 40 games a season before a million plus fans, being the lynch pin of Mariner success and boosting Seattle’s bragging rights. Not bad compensation in any occupation except perhaps CEO of a corporation. Compare the reaction to Felix’s paycheck to that of Starbuck’s CEO, Howard Schultz’s $16 million per year (plus about $52 million of other at risk compensation, like stock options). Howard is on the job 24/7. He’s responsible for managing worldwide over 18,000 stores and over 150,000 employees as well as increasing the value of Starbuck’s stock held by millions of people personally or in retirement accounts and ensuring customer satisfaction and loyalty from more millions of coffee aficionados.
One is a greedy rich guy who “didn’t do a damn thing” to earn his pay while the other “restored faith” and teared up at his good fortune.
Read the “comments” on one blog to get a sense of the reaction to Mr. Schultz’s compensation: Click HERE
For Mr. Hernandez, read Seattle Times sports writer, Jerry Brewer:’s article: Click HERE
While I don’t think the super rich need my sympathy, I do wonder if sports and other entertainment stars get a pass on criticism of their high incomes because they require constant media exposure to stay on top; Entertainment Weekly, MTV, People Magazine, Sports Illustrated to name a few. We know far more about their glamours lives than any boring corporate manager. Corporate CEOs mainly hit the news if they are being pilloried for bad decisions or the money they make. Is it jealously or failure to understand the market for talent? Would you rather have the market or some government agency set the compensation packages? Careful liberals how you answer this, Schultz is one of you.