According to researchers at Harvard Business School (HBR Ideacast 207), the real value of a college football coach (who often gets paid several million dollars a year), is only about $400k. This is calculated by looking at the real value of their work using economic principles (i.e. allowing for the effect of other people/factors in contributing to the success of the team).
Similarly, a Kindergarten school teacher should be making $320k (a lot more than they actually do, I assume…). This is because it has been found that each 1% improvement in performance of the children results in a $1,000 a year increase in their income as adults.
The economics and pay of American football coaches is very similar to that of football managers in the UK and Europe, I am sure. I would guess that Kindergarten teachers make similar money to pre-school and primary teachers in the UK.
A quick search of Google reveals quite a lot of material similar to this. (My profession doesn’t come out of this too well, I’m afraid.)
There are a lot of myths about pay and reward that aren’t obvious until you go beneath the surface and look at the real economic, social and environmental factors. Another reason why the accountancy profession must develop beyond pure financial number-crunching using traditional methods, if we are to add real value.
What do you think you are really worth?