Effective and Personal Management Solutions

Managing Director Insights

Sustainable Compensation

12/11/2023

In business, compensation is tied to production, and return on investment.

Sustainability … should be the goal.

The employee grows over time … increases compensation … and increases return for the company, based on experience.


But it often times is not.

When employment becomes unsustainable … it’s typically because people who had provided a certain return on investment are not providing that same return based on a myriad of factors.

Or sometimes, there just are newer workers who can perform the function at a lower rate, and the higher priced workers are replaced.

It’s one of the reasons why, people in the world of work today, will change positions on a dime.


Over the weekend a couple of absurd professional sport contracts were signed.

John Rahm, who had been a very vocal critic of the LIV Golf Tour, just left the PGA Tour and signed with LIV Golf for $300M. Critics of the LIV Golf Tour point to the Sports Washing initiative of the Saudia Arabia PIF, who funds LIV Golf.

Because of their goal for image cleansing, the PIF has a different way of calculating return … one that will never be penciled in the way it’s done in American businesses.


Also, Shohei Ohtani just signed with the LA Dodgers for $700M. This broke the previous largest contract of Mike Trout ($426M).

Ohtani’s agent said he went to the Dodgers because he wants to win.

In two games, Ohtani will earn as much as San Francisco 49ers QB Brock Purdy will make in an annual season.


Your thoughts?


Good for them, well deserved.

Sustainable?

Or just obnoxious … ridiculous … a society where so many struggle … it’s impossible to justify a sports figure earning this type of money.


29-35, clouds.

Make it a great Monday, everyone!


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SCN – Search Consulting Network

Jim Guerrera

Author Info

Jim Guerrera

Jim Guerrera, Managing Director, founded SCN in 2000. Jim is primarily responsible for the development of the leaders at SCN, strategic planning, the hiring and development of company associates, culture leadership, core value leadership, sales le...

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