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It’s the off-season in professional baseball and deals are being made in preparation for opening day. This week, the Los Angeles Dodgers and outfielder Teoscar Hernández reportedly agreed to a one-year, $23.5-million contract. That’s in American dollars, of course. Last month, the same team signed Shohei Ohtani to a 10-year, $700-million contract. If I’m related to either one of them, now would be a good time to tell me.
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Many diehard fans of the game don’t love these types of deals. Some say the Dodgers are buying a championship. And perhaps they are. But why be outraged? The team has a value of $4.8 billion and a TV deal with Time Warner Cable worth $8.35 billion until 2039.
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Ohtani’s jersey, in pre-order, sells for $175 and, like the one from his previous team, is one of the league’s bestsellers. And you’ll pay at least $200 for decent seats to attend a game at Dodger Stadium.
The star players are part of the ecosystem that gives teams like the Dodgers astronomical worth — twice as much as the Habs. So, am I outraged by Hernández’s and Ohtani’s respective salaries? No. We buy the jerseys and watch and attend the games. These boys of summer deserve their piece of the lucrative pie.
Meanwhile, closer to home . . .
Last week, a Canadian Press news article was reprised by various news outlets. With a headline like “The salaries of the leaders of some of Canada’s biggest charities might be a surprise to those who donate”, it was sure to raise eyebrows.
The article “identified 17 charities whose top executive drew annual compensation that was in the $200,000 to $250,000 range or higher.” Well, yes. Charities might not be for profit, but they’re run like businesses and must be financially viable. And in a world that is increasingly competitive and every cause is urgent, getting recurring donations has become something of a combat sport. Some universities offer master’s degrees in philanthropy — because there’s a science and skills to it. Why should top executives at the biggest charities be paid less than their counterparts in other industries?
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For charities and foundations, it’s considered good practice to dedicate 20 per cent of their annual budgets to overhead. But even that threshold can be contested — because, depending on circumstances, breaking it does not necessarily equate to bad governance. Many international NGOs have rightfully been criticized for mismanaging funds, particularly after natural disasters. Still, not all NGOs, charities and foundations should be lumped into one basket.
What seems as important as competitive salaries for CEOs is competitive salaries and good working conditions for their employees. Being treated fairly by no means symbolizes less dedication to the important causes these charities champion.
Am I outraged that the highest executives of Manitoba-based Ducks Unlimited Canada were paid between $200,000 and $350,000? I am not, if their employees were also paid well.
But I am outraged that teachers don’t make these types of six-figure salaries. I resent that orderlies have to fight for decent wages and conditions, and I find it ignoble that public sector salaries and work environments have nurses going private or changing professions and that more than 420,000 public sector workers had to strike to be heard.
Last September, I attended a conference in New York where Ajay Banga was a speaker. As president of the World Bank, Banga’s words have influence. “We have all the money in the world to fix all of the world’s problems,” he said. “We just keep on making the wrong decisions.” If that’s true on an international level, it’s also true on the municipal, provincial and federal levels.
It’s not that CEOs must necessarily be paid less. Rather, their employees — along with teachers, nurses and other members of the public sector — must be paid better. There’s enough money for it.
Martine St-Victor is the general manager of Edelman Montreal and a media commentator. Instagram and X: martinemontreal
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