Ty, If You'd Only Stayed At The LPGA You'd Be Making $184 More A Year By Now
In the April, 2009 Golf Digest writer Alan Pittman compiles the magazine's annual "Money List" of executive compensation in golf. I have to say, it's wonderful to see all of these non-profit organizations able to pay their top margin men so well as they face major cost cuts elsewhere. But hey, if they didn't pay them this well, they'd get scooped up by other corporations the US Postal Service errr...by someone.
Let's giggle at some 2007 compensation numbers, shall we?
Tim Finchem: $4,757,458
Pittman notes that Finchem's compensation broke down as follows:$1.3 million in salary, $3.2 in bonuses and $240k in benefits. Since Finchem's bonus is believed to depend in part on purse growth and other "growth" (explaining why it's his mantra), you have to figure the bonuses will be coming down in the coming years. Frankly, I'm worried for his well being.
- Ed Moorhouse/Charlie Zink, PGA Tour VP, C-COO's, $1,611,106 and 1,534,771
Ed has pulled ahead by more than $75k, but considering both were making a paltry $1,227,634 just a few years ago, I'd say there are no 3-series in their future, unless they are looking for a cute convertable to cruise I-95 on those sweltering summer weekends.
- Ron Price, PGA Tour VP, CFO and Tom Wade, VP, Chief Marketing Officer, $1,081,595 and $1,028,879
Two more millionaires in the PGA Tour executive ranks! I bet the players love reading this exciting news.
- Joe Steranka, PGA of America CEO, $1,010,998
Poor Jim Awtrey only made $662,751 in his final year with the PGA of America. I'm getting weepy, but then there are the USGA salaries which really tug at the heartstrings.
- David Fay, USGA Executive Director, $746,905, Dick Rugge, Senior Director Equipment Standards, $549,727, Mike Butz Deputy Ex. Director, $493,090, Barry Hyde, CMO, $307,314, Peter Bevacqua, CBO, $293,900
$2.391 million for the top five in executive compensation. You just can't find bargains like that these days.
- Carolyn Bivens, LPGA Commissioner, $521,699, Ty Votaw, PGA Tour Exec. VP Communications and former LPGA Commish, $521,515
Well, I suppose you have fewer headaches in Ponte Vedra than Daytona Beach, Ty. That should ease the $184 deficit blow.
And finally, your LOL, You've-Got-To-Be-Kidding-Me Award winner for 2009:
- Stephen A. Hamblin, American Junior Golf Association Executive Director, $352,050
For the entire list, see your April Golf Digest, page 52.
Thursday, March 26, 2009 at 11:40 AM 16 Comments | in Carolyn Bivens, LPGA, PGA Tour, PGA of America, Tim Finchem, USGA
Reader Comments (16)
That does not mean that I think these particular folks have performed well. I'd like it a lot better if Tim Finchem behaved more like a $5m executive, not less. That would include being a major player on important issues including equipment, technology, golf courses, etc.
All of those other organizations are solidly profitable tax-paying organizations (at least I think most are profitable).
Last I checked the PGA Tour enjoys non-profit status -- I suspect that some time soon this will become a major issue, primarily driven by Finchem's compensation. If we ever find out what his retiement account balances are I doubt he survives the ruckus that follows.
Time will tell...
That's what we call Geoff not running spellcheck. Thanks!
Jason,
My AJGA eligibility has expired.
Chuck,
Do note that it was Golf Digest who reported this, not I. Merely retyping and adding admiring language.
Why my friend that is so my tax rate is way below the suckers that work for a living.
Wow that is so cool!! Can we set up an offshore account too?
Of Course!!! My best friend is Mr. Stanford.
Any chace you could throw a little charity my way I've got 8 new faces to feed, besides the mother's 2-1/2 faces and what is a poor guy gotta do?
The PGA Tour: Thanks to you, it isn't working.
As I said, I'm not angry, or outraged, or anything. Just "ill at ease."
By the way, Geoff, there was an interesting article in yesterday's Wall Street Journal about CVS and its charity golf outings. I read the damn article twice, and couldn't figure out what CVS had done wrong, to provoke such an expose'. Turns out, every person who commented on the article felt the same way; was there anything wrong? Was there any kind of a story?
In summary, CVS is involved in several golf-outing related things, all of which support unquestioned charities. Some of the events were trips to Tour events, in which the bidders (mostly CVS vendors, no surprise) would bid on a group trip to a tournament, or a great golf course, on a corporate jet, with the CVS exec of their choice. There was no question about all of this activity being duly and publicly reported; that was how the reporter got his info in the first place. There was also no serious question about this being a "perk" for the CVS exec who went along. Whichever CVS exec went, the cost/benefit was counted as income and taxed as such.
In a word, what CVS did was to use its corporate weight, with golf as the medium, to raise a lot of money for charity. The whole situation boiled down to virtually the same thing as what thousands of corporate charity golf outings do, all over the country.
What it seems, is that financial reporters are beginning to criminalize the game of golf itself.
Here's the link to the article. Don't miss the link to the Comments page, in which every single commenter basically said, wtf. John Paul Newport, can't you give your colleague any help on this?
http://online.wsj.com/article/SB123803247029743869.html
I understand your ill at ease feeling about this stuff, but I also think the salaries raise some questions, particularly as these organizations cut back and you look at some pretty hefty raises. Or in the case of some, inexplicably high pay.
As I pointed out above, I wonder if Finchem's bonus structure could impact his decision making to the point that he's not doing what's best for the tour in these tough times. Obviously that's for the policy board to figure out.