Feeds:
Posts
Comments

Posts Tagged ‘Base Salary’

LeBron James

LeBron James

These days it’s hard to turn on the TV and not hear an ESPN talking head evangelize the many virtues of “King James.”

After the Blazers fell to the Houston Rockets in the first round I’ve been forced to surf basketball channels and find another team to rally behind other than the “bad boyz” of Los Angeles.  Let me start off by saying that I actually like the 6-foot-9 NBA star LeBron James.  I like the way he plays and he is good.  Very good.  So good in fact that he was named NBA Rookie of the year in 2003-04, NBA MVP in 2008-09 and has been both All-NBA and the All-Star every season since 2005.  On the US men’s national basketball team he has won a bronze medal at the 2004 Olympics and a gold at the 2008 Olympics

At just 18, LeBron was selected with the number one pick in the 2003 NBA draft by the Cavaliers and signed a $90M shoe contract with Nike before his professional debut.  Does Nike know how to pick ‘em or what?!  The Cavs have so dominated the competition this year that every game has been won in double digits, a record, and none of their playoff games have come with any drama.  There are all the no-look passes, the step-back 3-pointers from 10’ behind the arc and the reverse dunks.  Is there anyone else on the team roster that you can remember his name?  It’s as if the arm-swinging cloud of talcum powder halo follows him everywhere. It’s important to note that King James Inc. (LeBron’s wholly owned company) organizes many charity events including the annual King for Kids Bike-a-thon in Akron, Ohio.

Salary_CompareBut in these recessionary times, employee cuts and school district sacrifices along with budget shortfalls the message of collective sacrifice seems to have missed the NBA and pro athletes.  LeBron will be paid $14.4M this season by the Cavs and his annual earnings off the court were estimated by Forbes magazine at $14M.  The enormous magnitude of salary differential really hit home when I compared salaries using the Cleveland Ohio Statistics calculator.  For example, I plugged in an aspirational blogger salary of $100K. Based on 45 years of work per lifetime it would take  6.31 lifetimes to equal LeBron’s pay for just one season!  ONE SEASON!!  Let me bring it even closer for you.  Based on a 40 hour work week, LeBron’s hourly pay is $13,658.93 vs. $48.08 on a very respectable $100K annual salary.  He made over $6800 in the time it took to write this post.  Looking to raise your blood pressure?  Play with the calculator HERE

Call me crazy, but I suspect LeBron isn’t much concerned about today’s US Postal Service increase of a first-class stamp going to $0.44 cents.

Photo courtesy Nike and Cleveland.com.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

trainThe money train…. Wow … I think I just had a flashback. A warm sunny afternoon sitting on the hill overlooking the river. The birds singing in the trees, everything is so bright and colorful.  Oh wait weren’t we talking about Harley-Davidson?

Harley announced today its second round of job losses since the beginning of the year with a cut of up to 400 more positions, including up to 80 at its Milwaukee-area factories over the next two years.  The company reported a 37% drop in first-quarter profit as net income fell to $117.3 million, or 50 cents a share, from $187.6 million, or 79 cents, in the year-ago period. Revenue declined to $1.29 billion from $1.31 billion. Harley’s worldwide motorcycle sales declined 12%, and U.S. retail sales declined nearly 10% from last year’s first quarter.

And speaking of riding the money train…we learned this week that the new Harley CEO Keith Wandell, will receive a base salary of $975,000 plus other compensation according to SEC filings.  Wandell, replaces current CEO James Ziemer on May 1, and will also participate in the company’s short-term incentive plans with a total opportunity of 120% of his base salary and a maximum payout of 240% of his base salary with a cap of $3 million, his 2009 payout pro-rated based on salary earned for the year.  For comparison purposes, Forbes provides details on Ziemer’s comp plan is HERE.

Talk about a nice run up from his Johnson Controls base salary of $441,670 plus bonuses.  However that number is a bit misleading because compensation for the “chief” executive typically includes: salary and bonuses; other compensation, such as vested restricted stock grants, LTIP payouts and perks; and stock gains which is the value realized by exercising stock options.  In truth, Wandell’s total compensation as reported by Forbes was $9.7M.  Does anyone think he took a salary cut in moving to Harley?  Might I suggest it’s an over payment for services rendered?  Shall we just chant “U.S.A.!, U.S.A.!” and feel good that CEO pay is more than an order of magnitude above the average line worker?

I suspect that Wandell is pinching himself …paid nearly a $1M to lead the premier American based manufacturer of heavyweight motorcycles yet somehow landed the gig without a riding endorsement or owning a motorcycle…excuse me for a minute while I go puke.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

%d bloggers like this: