NBA Reduces Salaries Of 100 Top-Earning League Executives By 20 Percent

[RealGM Wiretap]

The NBA is reducing the base salaries by 20 percent for approximately 100 of the top-earning league executives.

“These are unprecedented times and, like other companies across all industries, we need to take short-term steps to deal with the harsh economic impact on our business and organization,” said Mike Bass, who refused to confirm the changes.

Adam Silver and Mark Tatum are among the executives taking payouts.

There are no widespread salary reductions to other employees such as support or administrative staff.

Via Adrian Wojnarowski/ESPN

[NYKnickerbocker]

This should be the first step most companies should do to save money tbh

[IWishIWasHarden]

This should be the first step most companies should do to save money tbh

Most companies don't have administrative staff than earn millions per year. Thus, those with most to lose are usually the administrative staff whose mortgages may be several million in total that they need to keep paying to avoid foreclosure.

[Dan33185]

This should be the first step most companies should do to save money tbh

Most companies don't have administrative staff than earn millions per year. Thus, those with most to lose are usually the administrative staff whose mortgages may be several million in total that they need to keep paying to avoid foreclosure.

Maybe they shouldn't live beyond their means?

[BigGargamel]

This should be the first step most companies should do to save money tbh

Most companies don't have administrative staff than earn millions per year. Thus, those with most to lose are usually the administrative staff whose mortgages may be several million in total that they need to keep paying to avoid foreclosure.

Maybe they shouldn't live beyond their means?

What a stupid response.

My partner lost 100% of her income. We can’t afford our rent now. Does that mean we were living beyond our means?

[Vegeta10176]

Most companies don't have administrative staff than earn millions per year. Thus, those with most to lose are usually the administrative staff whose mortgages may be several million in total that they need to keep paying to avoid foreclosure.

Maybe they shouldn't live beyond their means?

What a stupid response.

My partner lost 100% of her income. We can’t afford our rent now. Does that mean we were living beyond our means?

If your earning millions you should easily have money to tide you over for years.. If your earning 100s of thousands then you should have money to tide you over mininum 6 months.. Now only the lower scale obviously ppl are living pay check to pay check so you can not expect ppl to be able to pay for rent when losing their job.. Since we have no idea what your combined income and expenses are we can not say if your living beyond your means.. Those executives earning millions have way more disposable income they are fine..

[Plutonashfan]

Maybe they shouldn't live beyond their means?

What a stupid response.

My partner lost 100% of her income. We can’t afford our rent now. Does that mean we were living beyond our means?

If your earning millions you should easily have money to tide you over for years.. If your earning 100s of thousands then you should have money to tide you over mininum 6 months.. Now only the lower scale obviously ppl are living pay check to pay check so you can not expect ppl to be able to pay for rent when losing their job.. Since we have no idea what your combined income and expenses are we can not say if your living beyond your means.. Those executives earning millions have way more disposable income they are fine..

Bingo!

[IWishIWasHarden]

Maybe they shouldn't live beyond their means?

What a stupid response.

My partner lost 100% of her income. We can’t afford our rent now. Does that mean we were living beyond our means?

If your earning millions you should easily have money to tide you over for years.. If your earning 100s of thousands then you should have money to tide you over mininum 6 months.. Now only the lower scale obviously ppl are living pay check to pay check so you can not expect ppl to be able to pay for rent when losing their job.. Since we have no idea what your combined income and expenses are we can not say if your living beyond your means.. Those executives earning millions have way more disposable income they are fine..

In my original example, they're not living beyond their means more than anyone else. The standard way to live is to buy a home which you can afford based on current understanding of what "affordability" is, which generally does not have the coronviurs in mind for anybody.

Just because someone could only just afford their home without any money left over does not mean they're living within their means more than anybody else . . . no one is forcing people to buy homes.

[anatomicbomb]

And that's only their top-100 executives, how many execs does the league have? And do they need that many?

[PerfectJab]

This is basically a message to the players.

[Indeed]

And that's only their top-100 executives, how many execs does the league have? And do they need that many?

Actually 100 executives may not be a lot for a global organization.
They probably have about 23 departments (let's say 20 C-levels), then 5 VPs each under them would be 100.
https://careers.nba.com/departments/

From Basketball operation, Officiating, Security, etc. those are just part of the departments for basketball games. There are merchandise, global present / public relationship, media like NBA TV, etc. those are other part of NBA. Then adding the regular ones for large corporations in Legal, IT, HR, Finance, etc. that would be some what 15 C-levels. The league itself is actually very big by its own.

[Indeed]

This should be the first step most companies should do to save money tbh

Most companies don't have administrative staff than earn millions per year. Thus, those with most to lose are usually the administrative staff whose mortgages may be several million in total that they need to keep paying to avoid foreclosure.

Those people are contract based and tied to bonus, so they can calculate them by percentage in salary reduction. Most executives at corporate level are not full time employees, and you will still pay them if you terminate their contract.

Meanwhile, I don't really see those executives tied their money on mortgages, but perhaps in other investment, where the investment are mostly halved. Besides, people working at that level are more for the challenge or pride over money. They are paid that much because of competition across companies and lack of supply (not many people have the experience in managing the amount of budget and resources).

[Dan33185]

Most companies don't have administrative staff than earn millions per year. Thus, those with most to lose are usually the administrative staff whose mortgages may be several million in total that they need to keep paying to avoid foreclosure.

Maybe they shouldn't live beyond their means?

What a stupid response.

My partner lost 100% of her income. We can’t afford our rent now. Does that mean we were living beyond our means?

If your partner is a multi millionaire and is now struggling to pay her rent after one month out of work, then she bungled her finances somewhere along the way.