Everyone is important in a business or organization. From the top decision makers, to the guy in the warehouse who handles the product and everyone in between. What each person gets paid basically boils down to supply and demand, and market value worth.
I know many don't like to hear this, but it's still the truth. While everyone is important, not everyone is as valuable. That is why the top CEO makes the kind of money that a top CEO does. While working in the warehouse is an important job, there are millions of people who can do that job. If you leave, you are pretty much easily replaced. If the top CEO leaves, and he has top talent, replacing him with someone who is less talented can have grave consequences, as I will point out at the end of this blog. It's a very high risk job which can make or break a company.
https://www.sportsnet.ca/nhl/article/gm-kyle-davidson-expected-blackhawks-to-be-further-prior-to-coaching-change/
I'm not here to glorify the paying of insane sums of money to CEOs and execs. I'm just going to point out why that happens.
Yesterday, Luke Richardson was fired as the coach of the Chicago Black Hawks. Here is what the GM said as to his reasoning.
"the team has not performed to the level the organization expected...You have to be realistic with what you're expecting and what you demand out of a group, but I don't believe this is a last-place group,”
-Davidson told reporters Friday morning in Chicago.
Is that true? I'm sure Davidson believes that. I do not.
Two of the players Davidson signed in the off season were TJ Brodie and Tyler Bertuzzi. Both players who played on the Toronto Maple Leafs last year.
Brodie was a good player for 3 years for the Leafs. Two years ago he declined sharply. Last year he was awful, and couldn't defend his man at all. He was clearly not an NHL level defenseman anymore. By the end of the year, he didn't even get to play. He wasn't good enough anymore. Bertuzzi had a great playoff 2 years ago with Boston. That got him a fat, one year contract with the Leafs. He was okay, but certainly no difference maker. He was no factor at all in the playoffs. Chicago decided to give him a very fat contract with term, while the Leafs walked away.
Neither of Brodie or Bertuzzi has done anything to help Chicago be any better. Arguably worse.
What did Leafs GM Brad Treleving do? He let Brodie and Bertuzzi walk away. In the meantime, he locked up homegrown Bobby Mcmann for 2 years at a fraction of the cost of Bertuzzi. Same player, less cost. He found Simon Benoit for free last year, tried him out, and locked him up for 2 years at less than Brodie would cost. Benoit is no Bobby Orr, but at this point, he is far more valuable and useful than Brodie, who is on his last legs at best. Benoit basically took Brodies spot last year on the Leafs.
Davidson also traded Jake McCabe two years ago to the Leafs when they had another GM. As it turns out, the Leafs stole McCabe for a draft pick, and then traded a defenseman they didn't need to Washington and got the identical pick back, which they then took highly coveted prospect Easton Cowan with, who will eventually play the role Bertuzzi did with the Leafs. Treliving didn't make the McCabe trade, but he was wise enough to lock him up long term this year. What did Davidson do? In addition to trading McCabe, he also decided that Chicago would pay a large portion of his salary while he played for Toronto. That is money he could have used now to get a far better player than Brodie to help the current team.
It's easy for Davidson to blame the coach. It's easy for anyone with a brain to see Davidson is the problem. He makes terrible decisions and hurts his franchise. Chicago is dead last in the NHL. The Leafs are near the top of the NHL. Decisions and performance matter. There is monetary value in those who can make the right choices. A lot of value.
The most important employee in the current professional sports environment is the GM. What they do makes and breaks the team. Coaches can't make TJ Brodie regain his legs. They can't make Tyler Bertuzzi be the 30 goal scorer he is paid to be when he is an 18 to 20 goal scorer.
https://www.msn.com/en-us/money/companies/ousted-intel-ceo-pat-gelsinger-is-leaving-the-company-with-millions/ar-AA1vdkuK?ocid=BingNewsSerp
Five years ago, Intel was still the king. Now, they are borderline a worthless company and their CEO was just removed. Five years ago Nvidia was a mid level company that made a huge bet on AI. Now, Nvidia is one of the most valuable companies on the planet. One CEO made the right call, the other screwed that up.
Whether we like it or not, that is why they get paid what they do. Blaming others for your mistakes, as Davidson just did, shows you don't own up to your own mistakes. My opinion is this. Davidson won't be the GM for Chicago much longer. A year at most. He might not even survive until April. He is a terrible judge of talent and value for the dollar. He is grasping at straws at this point. He is hopeless.
I do my own investing and make my own decisions with all of that. I understand that not everybody wants to do that or can do that. But what I do know is that if there comes a time I don't want to bother doing the work it takes to make money investing, I certainly would never take advice from some low level employee at the bank. If they actually knew anything about the market and investing, they would not be working at the bank, but investing their own money full time or working for a high end investment firm. I will be glad to pay 3 percent or even a bit more to get expert advice by proven talent that is rewarded as such because they have a track record of getting it right.
I'm not here to glorify the paying of insane sums of money to CEOs and execs. I'm just going to point out why that happens.
Yesterday, Luke Richardson was fired as the coach of the Chicago Black Hawks. Here is what the GM said as to his reasoning.
"the team has not performed to the level the organization expected...You have to be realistic with what you're expecting and what you demand out of a group, but I don't believe this is a last-place group,”
-Davidson told reporters Friday morning in Chicago.
Is that true? I'm sure Davidson believes that. I do not.
Two of the players Davidson signed in the off season were TJ Brodie and Tyler Bertuzzi. Both players who played on the Toronto Maple Leafs last year.
Brodie was a good player for 3 years for the Leafs. Two years ago he declined sharply. Last year he was awful, and couldn't defend his man at all. He was clearly not an NHL level defenseman anymore. By the end of the year, he didn't even get to play. He wasn't good enough anymore. Bertuzzi had a great playoff 2 years ago with Boston. That got him a fat, one year contract with the Leafs. He was okay, but certainly no difference maker. He was no factor at all in the playoffs. Chicago decided to give him a very fat contract with term, while the Leafs walked away.
Neither of Brodie or Bertuzzi has done anything to help Chicago be any better. Arguably worse.
What did Leafs GM Brad Treleving do? He let Brodie and Bertuzzi walk away. In the meantime, he locked up homegrown Bobby Mcmann for 2 years at a fraction of the cost of Bertuzzi. Same player, less cost. He found Simon Benoit for free last year, tried him out, and locked him up for 2 years at less than Brodie would cost. Benoit is no Bobby Orr, but at this point, he is far more valuable and useful than Brodie, who is on his last legs at best. Benoit basically took Brodies spot last year on the Leafs.
Davidson also traded Jake McCabe two years ago to the Leafs when they had another GM. As it turns out, the Leafs stole McCabe for a draft pick, and then traded a defenseman they didn't need to Washington and got the identical pick back, which they then took highly coveted prospect Easton Cowan with, who will eventually play the role Bertuzzi did with the Leafs. Treliving didn't make the McCabe trade, but he was wise enough to lock him up long term this year. What did Davidson do? In addition to trading McCabe, he also decided that Chicago would pay a large portion of his salary while he played for Toronto. That is money he could have used now to get a far better player than Brodie to help the current team.
It's easy for Davidson to blame the coach. It's easy for anyone with a brain to see Davidson is the problem. He makes terrible decisions and hurts his franchise. Chicago is dead last in the NHL. The Leafs are near the top of the NHL. Decisions and performance matter. There is monetary value in those who can make the right choices. A lot of value.
The most important employee in the current professional sports environment is the GM. What they do makes and breaks the team. Coaches can't make TJ Brodie regain his legs. They can't make Tyler Bertuzzi be the 30 goal scorer he is paid to be when he is an 18 to 20 goal scorer.
https://www.msn.com/en-us/money/companies/ousted-intel-ceo-pat-gelsinger-is-leaving-the-company-with-millions/ar-AA1vdkuK?ocid=BingNewsSerp
Five years ago, Intel was still the king. Now, they are borderline a worthless company and their CEO was just removed. Five years ago Nvidia was a mid level company that made a huge bet on AI. Now, Nvidia is one of the most valuable companies on the planet. One CEO made the right call, the other screwed that up.
Whether we like it or not, that is why they get paid what they do. Blaming others for your mistakes, as Davidson just did, shows you don't own up to your own mistakes. My opinion is this. Davidson won't be the GM for Chicago much longer. A year at most. He might not even survive until April. He is a terrible judge of talent and value for the dollar. He is grasping at straws at this point. He is hopeless.
I do my own investing and make my own decisions with all of that. I understand that not everybody wants to do that or can do that. But what I do know is that if there comes a time I don't want to bother doing the work it takes to make money investing, I certainly would never take advice from some low level employee at the bank. If they actually knew anything about the market and investing, they would not be working at the bank, but investing their own money full time or working for a high end investment firm. I will be glad to pay 3 percent or even a bit more to get expert advice by proven talent that is rewarded as such because they have a track record of getting it right.
I dont know the name of anybody that works at Apple making the products. I do know the name Steve Jobs. He made that company what it became. Twice in fact. Ditto for Bill Gates. Ditto for the CEO of Nvidia. I know all their names. I want to know who is looking after my investment if I make an investment. If I owned the Chicago Black Hawks I know that the man in charge, Kyle Davidson is going to destroy my value by undermining the organization with terrible decisions that other talent simply would not make. That is why he will be gone shortly and somebody with a better track record will be brought in and paid a much bigger salary. That is why top execs get paid what they do to do what they do. They are worth the money they make, for the investors.
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