by Kent Sterling
Millions of Americans scrimp to stuff a little cash in a 401K so they don’t need to panhandle in their old age. Soon-to-be former baseball commissioner Bud Selig has no use nor need for a 401K as Major League Baseball is going to pay the 80-year old $6-million each year in perpetuity for being the former commissioner.
“Hard to fathom” doesn’t scratch the surface of my bewilderment upon reading about the Selig retirement pseudo-annuity.
Severance is a simple concept. An executive gets bounced, and because managers have empathy for one another, checks are cut to lessen the blow of separation from a company.
But we are supposed to save for retirement – especially when the guy saying goodbye has “earned” in the neighborhood of $20-million per year for many years, as Selig has.
It’s painful to admit this, but I’m dumb enough that the guilt over being paid $6-million annually for the rest of my life would cause me to refuse the cash. I wouldn’t be able to cash the check. If I ever had a job that paid me $20 million per year – even if my skill set was so unique and impossible to replace that a business would collapse without me – I would never be able to accept it.