Madison Bumgarner, San Francisco Giant pitcher, was paid $3,916,667 during the regular 2014 major league baseball season.
Bumgarner, however, was not the highest paid player on the San Francisco Giant baseball team this year. Tim Lincecum's contract for the 2014 baseball seasons was $17,000,000. In fact, Bumgarner was only 13th on the Giants payroll. He will likely earn much more as the MVP of the 2014 World Series in coming seasons.Why the great disparity in compensation?
Both Bumgarner and Lincecum are pitchers for the same team with about the same work experience and they are about same age.
Should the principal of "equal pay for equal work" be applied?
How does a firm determine the worth of an employee?
Using economic principles, write a paragraph explaining how a business owner, and society determines the worth of work performed by an individual?