NCAA Division I Football Coach Compensation Thesis

NCAA Division I Football Coach Compensation - Thesis Example The paper tells that the agency theory postulates that the compensation that executives are given should be aligned to the performance of the executives. The initial perspective that centers on this issue is that the moral hazard calls for unobservable nature of the managerial efforts to run an organization. It is thought that the principal of a given organization such as football coaches design the compensation of the employees of the firm. In the course of designing the compensation of employees, managers aim at meeting the objectives of their agents and therefore deserve the high compensation. The second perspective that supports the compensation of executives to be aligned with the performance is that executives are faced with many difficult choices to choose from in order to solve firm issues. The fact that they are able to make the right choices, their efforts are unobservable and therefore should be paid higher amounts based on the performance. As noted by Core, John, Holthaus en and Larcker, the second perspective assures executives that they are responsible for designing compensation plan of agents to be contingent to the performance measures. To this end, executives are allowed to screen agents and ensure that they possess the heterogeneous ability required in the organization. Despite the two perspectives outlined above that promote the need for aligning the compensation of executives with their performance, division 1 coaches and other football coaches are not paid according to their performance. Both perspectives prescribe that the compensation of employees should be increase as the performance of the employees increase. However, Darrough and Melumad (73) note that there is a weak effect of agency theory on the performance measures of CEO and football coaches. In a study conducted by Jensen and Murphy (1990a), it was established that an increase in the value of shareholders by $1000 led to only a $3 increase in the compensation of CEOs. Therefore, i t was concluded that the compensation offered to CEO and football coaches is independent of their performance. This study seeks to establish whether the compensation of division-1 football coaches relies on their performance and whether it is related to compensation of CEOs. Problem Statement The compensation of most employees follows the agency theory, which postulates that the compensation of employees should follow their performance. An employee whose performance is high should receive a high compensation and vice versa. The need for the compensation to be aligned to the performance of the employee is based on the perspective of the moral hazard and that of the adverse selection. Despite these perspectives and the agency theory, not all employees are paid based on performance. For instance, the salaries of division one coaches and CEOs seems not to follow the agency theory given that an increase in the performance of the organization only leads to a small increase their pay (Bank er Plehn-Dujowich and Xian 56). This has led many scholars to conclude that the compensation of football coaches does not follow the agency theory. Moreover, in some cases, the compensation of the coaches is not aligned to that of CEOs of other firms (Bushman Indjejikian and Smith 56). Due to these issues, it is necessary to determine the factors that affect the compensation of division 1 coaches in NCAA. The division 1 football coach compensation is affected by other factors apart from the performance such as the training of the coach, the level of employment whether the coach is an overall coach or a coach that coaches only a given group such as forwards, center or backwards. This study seeks to establish the specific factors that are responsible for the compensation of division 1 coaches in the U.S. Study Objectives This study seeks to establish the factors that affect the compensation of division one football coaches in the U.

Critical book review of How Democratic is the American Constitution by Essay

Critical book review of How Democratic is the American Constitution by Dahl - Essay Example reas where reforms and improvements can be brought about all these are mentioned and discussed in the book making up for the positive angle of the book. Extensive research undertaken towards the addressing of the different domains and angles and also supporting statements based on the facts and accounts from the history make up for another strength and positive of the book. The potential negatives that may be attributed against this book include the monotone and the technically hardcore angle of politics. It may be taken as relatively boring for those who may not have larger interest of following of the politics or the history of American political dynamics that have changed over period of time through the journey of centuries. The book covers the issues of different angles and domains adequately. The fact the book covers the areas that are the desire and wishes of the ordinary citizens of the America makes this book the best recipe towards the American political framework understanding. The second fact that the book also highlights the need of improvement and possible reforms based on which the constitution of America can be further reformed and revamped towards fulfilling the needs of modern times and modern world. The book makes claims and supports its claims based on the facts and events and accounts given from the past and the existing textual context of American constitution that is presently existent and in working. The issue that is often discussed and debated with regard to the autonomy and power sharing of Supreme Court of United States of America is also brought into discussion. The possible striking of balance between the different institutions of the American state also make up for the essential issue being discussed and mentioned in the book. The mention and the critical analysis of the Census undertaken early in the 21st century have also been highlighted and mentioned with regard to its significance and its overall impact on the political and