Wednesday, January 4, 2012

Edward Zelinsky on "Albert Pujols, Occupy Wall Street, and the Buffett Rule"

Professor Edward Zelinsky, a distinguished tax law expert at Cardozo Law School and author of The Origins of the Ownership Society, has a thoughtful and provocative Oxford University Press piece on Albert Pujols and his 10-year, $254 million contract. Zelinsky argues that Pujols indeed deserves what he is being paid and that he is not under-taxed. Here is an excerpt:

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Pujols is not a poorly-performing CEO whose salary has been inflated by a compliant compensation consultant and ratified by a passive board of directors the CEO himself has selected. Pujols’ salary was established in a transparent and open marketplace by purchasers seeking his services on an arms-length basis against other bidders, baseball teams trying to win more games. Pujols has earned the rewards of the marketplace in a truly competitive fashion.

Pujols joined the proverbial 1% honorably, through hard work and professional success. I suspect that many of the folks who identify with Occupy Wall Street will disagree, but Pujols should not be lumped together with overpaid, underperforming CEOs – of which there are many.
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 To read the rest, click here.  It's a good read.