NYRR layoff and furlough 40% of their employees

Nutsack McGee wrote:

not my real handle wrote:

Road racing was too diluted. Events that made themselves about the medals, the tshirts, and the party, - not the actual racing could stand to go.

The first sentence is true. Road racing was diluted.

The rest of that sentiment doesn't make sense though. The races with the highest revenue and highest profit margins were probably the ones that focused on the medals and the parties. Most of the money comes from joggers who want medals and tee shirts. Those races will be the most likely to survive.

Agreed. It's the small, elite focused races that are likely to go to the wall. They have small crowds and rely on sponsorships to survive. The first thing companies will cut back on during the economic crisis is sponsorship of events like that. If anything, I expect to see more mass participation races and fewer elite-only races

streak wrote:

rojo wrote:

This is why I think it's fine for races not to refund money for cancelled races. I hope everyone is happy they got their $200 bucks back. But if the finances are that tight at the NYRR, I'm worried this means London won't have an elite only race. London has more money than NYC for the marathon but not infinitely more.

If there's no product, there's no pay. People should have the right to CHOOSE if they'd like to donate money to people without a job now.

generally agreed but keep in mind that much of what NYRR does is run free events for poor kids. Those events can't happen now anyway, but losing staff that knows how to put on the events (when they restart) may hurt poor kids.

The pay for BOTH Mary and Michael Capiraso are excessive regardless of non or for profit. I hope the culture can change.

No company in this country is set up to handle a year without revenues. The layoffs and bankruptcies are only just beginning...

Should the CEO of a company with 113 million in revenue make 500k in NYC? Yes! Seriously. Use your head.

Here are the real questions:

1. What is the market value of the CEO’s labor? I.e., is there anyone else inclined to pay him more than that to lure him away?

2. How much would it cost to get a CEO of comparable ability?

For #1, the answer probably is “maybe.” An average VP at Wall Street firm can make $500k in that city.

For #2, the answer is almost certainly that yes, you could get an equal or better CEO at that price. A lot of good managers that have banked big money in their careers might happily ride out their final working years in a job like that, especially if they are passionate runners

Michael Capiraso is overcompensated regardless of how much the company makes.

I do not think many of the CEOs of other Marathon World Major make as much as Michael Capiraso. I do not have any numbers but I believe NYRR's CEO pay should be in the same ball park and not excessively more than others.

Also, again, yes, NYRR brings in a lot of revenue but are they also compensating other team members generously like its CEO? Have you heard of stories of how labor intensive it is for these 50K+ salaried worker?

MichaelM wrote:

Michael Capiraso is overcompensated regardless of how much the company makes.

I do not think many of the CEOs of other Marathon World Major make as much as Michael Capiraso. I do not have any numbers but I believe NYRR's CEO pay should be in the same ball park and not excessively more than others.

Also, again, yes, NYRR brings in a lot of revenue but are they also compensating other team members generously like its CEO? Have you heard of stories of how labor intensive it is for these 50K+ salaried worker?

I'm not sure what he should be paid, but he's not just the race organizer of a world major. NYRR has something like 35 races per year, each one over 5,000 people, with a 25,000 person Half Marathon and other races over 10,000 people. They also have a very large free youth running program, with road races, cross country and track meets for poor kids.

It's a new day. Pandemic time and thereafter time for a reckoning for our society. Your business school analysis won't work in a broken paradigm where nothing is as it was. We're in Black Swan territory now. In any event, the ethical thing to do when you have to can half of your work force is to take a major haircut yourself and 20% ain't it. More like 50%. Just another tiny data point illustrating how the rich see the world.

Scratchy wrote:

Here are the real questions:

1. What is the market value of the CEO’s labor? I.e., is there anyone else inclined to pay him more than that to lure him away?

2. How much would it cost to get a CEO of comparable ability?

For #1, the answer probably is “maybe.” An average VP at Wall Street firm can make $500k in that city.

For #2, the answer is almost certainly that yes, you could get an equal or better CEO at that price. A lot of good managers that have banked big money in their careers might happily ride out their final working years in a job like that, especially if they are passionate runners

Bobschulcuntry wrote:

Maybe we don't need these monster funfests. Tighten up time standards and let the people there for a tshirt and finisher medals find something else to muck up.

Keep races as races, not as a reason to have a party.

Agreed 110%. My finishing time is my medal!!!

Anyways, all my medals I got, ended up either in a shoe box hidden somewhere in storage, or the better ones I gave all out to my nieces and nephews for inspiration, and because they asked for it;)

The tshirts are more useful though, good for dusting off floors around my house or used as throwaways for layering at cold starts while waiting in corrals...

Ethically, I believe you are correct. Financially, maybe. Real-world though, not even a chance. The C-level power holders are not going to make *less* money because of a pandemic. A simple strategy would be for a CEO to take a nominal pay cut in solidarity with their employees, then if revenues rise to or near past values, the pay cuts and/or layoffs of the labor force remain, while the CEO grants himself and the Board several small increases in pay (each less than the amount of the original cut, but in total much more). The board signs onto this as the A particularly savvy CEO may even try to reclaim back-pay for the time they received less.

Another more egregious strategy may of course be have bonuses paid to CEO's for their efforts in keeping the company afloat during these times. The CEO of NYRR is almost certainly not in a position where he *needs* a 6 figure bonus to pay the bills, so a promissory note of a bonus in a year or two is nearly as good as that money in salary actualized over that year or two. ESPECIALLY if he re-hires even half of those laid off, the message will be driven by the "rebirth" of NYRR and gloss over the CEO bonus structure.

End rant.

Great post and another reinforcer that our system is utterly corrupt and in drastic need of massive change. The 'I got mine' mentality makes for a nightmare society.

Those talking about getting rid of the frills and just being about racing are showcasing why they are not worth the $500k salary that the NYRR CEO is.

How's he going to earn that with half staff and no races to operate? Trick question, because he's one of the elites who won't have to provide work or value. He's above that.

the beagle wrote:

Those talking about getting rid of the frills and just being about racing are showcasing why they are not worth the $500k salary that the NYRR CEO is.

There are a total of 10 people who make up the C-suite. 2 presidents (approximately 500K each) and 8 VPs (250K average) with a total compensation of 3.1M according to their form 990 as of 3/31/2018. They aren't going hungry even with their "paycut" when folks in record number are lining up at food banks and 40% of their staff now being compensated with nothing and are now forced to rely on unemployment benefits to make ends meet.

What is the point of having an investment fund of over $50,000,000 if not for catastrophic moments like this? There is an investment in Central America/Caribbean for 5M. They own a private resort on an island somewhere?

NYRR membership dues was 2.1M. I couldn't find any information about refunds for people's membership fees so I'm going to assume that is holding relatively steady. They receive some revenue from government grants and other grants. There were individual contributors donating tens of millions of dollars in the form 990. Hedge Fund folks and trading floors are enjoying the market volatility.

https://scblob.nyrr.org/nyrrsitecoreblob/nyrr/pdf/financial-statements/fy18-990--final-signed-2819.pdf

https://scblob.nyrr.org/nyrrsitecoreblob/nyrr/pdf/financial-statements/new-york-road-runners-inc--issued-financial-statements-final.pdf

the beagle wrote:

Those talking about getting rid of the frills and just being about racing are showcasing why they are not worth the $500k salary that the NYRR CEO is.

+1

This is correct. I once watched the start of a NYRR race. The racers in corrals A and B were gone in around 30 seconds. Then 20 minutes of people doing the race just to do it. Whatever you want to call them. Joggers.

LRC type racers are just a very, very thin crust on an enormous pie of regular runners.

And those regular runners pay for a whole lot of stuff in the running world.

NYRR has a tough job sometimes...knowing that 95% of their customers aren't competitive but getting yelled at by the 5% to do more for them all time time.

Links aren't working but google 'NYRR form 990' or 'NYRR financial statements'

WhyRegisterHere? wrote:

How's he going to earn that with half staff and no races to operate?

Trick question, because he's one of the elites who won't have to provide work or value. He's above that.

the beagle wrote:

Those talking about getting rid of the frills and just being about racing are showcasing why they are not worth the $500k salary that the NYRR CEO is.

So you just hate CEOs in general?

I think it is more about CEOs being more in solidarity with the rank and file folks.