Jaw-Dropping Compensation: $1m College Coaches
Here's a link to a searchable compensation database for college football coaches, and here is a link to the latest AAUP report on faculty salaries (see Table 4).
1. Where's the outrage about this from college students? College students around the country often protest about the "unfairness" of low wages in foreign "sweatshops" making university apparel. Shouldn't they be protesting the "unfairness" of "excessive" football coach pay and relatively low ("sweatshop"?) wages for college professors? After all, the universities that the students attend pay their college professors with PhDs less than 10% of what they are paying the football coaches (see chart above).
2. AFL-CIO spokesman R. Trumka said “Workers are rightfully outraged when they learn about jaw-dropping executive compensation packages. It’s time to put the brakes on runaway CEO pay.”
Where's the outrage among UAW workers and taxpayers in states like Michigan where college football coaches at UM and MSU make $1 million to $1.5 million per year? Isn't it time to "put the brakes on runaway college football coach pay?"
3. Isn't rising compensation for college football coaches a perfect example of the rising income inequality over time that generates so much outrage? Certainly the gap in salaries between college coaches and college professors has risen over time, just as the gap in salaries between college professors and college secretaries has probably risen over time. An historical analysis would probably show an increasing share of total university payrolls going to the football and basketball coaches, or to the highest paid 1%, 5%, or 10% of university personnel (including presidents and deans).
Bottom Line: If the general public can understand that market forces ultimately determine the compensation of college football coaches, perhaps they can understand that market forces also determine CEO salaries; and since the salaries of both are rising over time, perhaps they can understand that rising income inequality is the natural and expected outcome of an increasingly competitive marketplace, which increasingly rewards scarce talent? One can always be hopeful.