Technically I'm talking about extortion

Within a month or so Lebron James will start to negotiate a new contract. It's believed that he will be able to command well over 30 million dollars per year. Regardless of how much he ends up making we will be told by many that he is "worth it" because he will deliver even more value to the team and city where he chooses to play. The line will be something like "If James delivers 50 million per year in benefits to...[fill in the blank city/team] and he only gets 30 million in return then he is a bargain." Of course if he goes somewhere else he *costs* the city and team who *could* have had him.

Recently some articles came out examining compensation for bankruptcy lawyers. Some have been making over 1000/hour. Many analysts have called the compensation justified based on the logic that if a law firm delivered X dollars of assets to it's client and only billed a fraction of that (at *whatever* per hour it does not matter) then the client came out ahead. 1000/hour might even have been a bargain if the client recovered enough money from the court.

We routinely hear of what seems like massive CEO compensation being justified on the basis of what the CEO can "deliver" and the negative ramifications to the company if he or she left. When these discussions occur we often hear that compensation is a means of "keeping score" and "keeping score" is one of the fundamental things we must do in a capitalistic, competitive society. Keeping score ensures people work hard and provides necessary motivation. It's important. It's right. It's a key part of what generates prosperity.

Right now we have a massive oil spill in the gulf of Mexico. Perhaps the most devastating oil spill in history. Oil is gushing out of a broken well under 5000 feet of water and wreaking havoc on the gulf coast. As I write this the flow has not been arrested. A group of the best engineers and scientists in the world have been assembled to work on the problem. Would it be appropriate for them to demand (lets say) 1500/hour before even flying to Houston. If they applied the same logic as the other professions I mention above they might say "lets face it we are a little more important to society at this moment than bankruptcy lawyers who just got 1000.hour, our skill and dedication may mean the difference between survival or death for several whole *industries* on the gulf coast for a generation. Our skill and dedication could be make a multi billion dollar difference to the entire economy of the gulf coast. Our skill and dedication could be the difference between moderate damage and a Chernobyl type of disaster that compromises an entire ecosystem for generations. The value of a bankruptcy lawyer getting some money from or a creditor just pales in comparison. Hence we are worth *at least* 1500/hour and we won't get on the plane to Houston without an agreement to give us that".

My sense is that if they played hardball like this they actually *could* command 1500/hour right now. If the same logic was applied to them as applied to professional athletes, CEO's and bankruptcy lawyers 1500/hour would be a huge bargain. But they wont make such a demand because the engineering and technical professions simply have no history in doing this kind of thing nor any infrastructure to support it. Infrastructure like agents in the case of professional sports, captive/friendly compensation consultants in the case of CEO's and controlled access to the legal system brought to you courtesy of the legal profession.

The engineering/tech sector is arguably the *only* profession in America that regularly stands in a position to do this kind of thing but does not - and in so doing hurts itself in my opinion.

From Forbes Magazine: "according to government data released Monday, doctors, on average..have the best-paid jobs in the country." Considerable evidence exists to show that medical costs passed on to the patients are far higher than "intrinsic" costs and are high (and rising) because of "the ramifications". IE if you are really sick and you don't get help you may well die. Or be crippled. Hence you will pay just about anything and hence the medical profession can charge you just about anything and they do.

Some rankings from Forbes:
1. Surgeon
Average Annual Pay: $219,770
One-Year Change: +6.2%

2. Anesthesiologist
Average Annual Pay: $211,750
One-Year Change: +7.1%

3. Oral and Maxillofacial Surgeon
Average Annual Pay: $210,710
One-Year Change: +10.6%

and on and on. Notice the big increases in pay even in the depths of the worst recession since the great depression. So much for restraint. Whatever taboo that existed in the medical profession about "monetizing" their position is obviously long gone. Is part of the reason for the high salaries to balance the need for exorbitant liability insurance? Of course. But the whole liability/lawsuit thing is really just another manifestation of (for lack of a better word) extortion. If you are a doctor and you don't have liability insurance and something goes wrong (and it will given the nature of the world) then you can lose all your money in court. By force. Judgment against you. If you get sick and don't get treatment you may well die. Or be crippled. That is a strong axis from which to extract a lot of money - and it's exploited to the n'th degree by the medical and legal professions both.

Back to the notion that compensation is a means of "keeping score" and "keeping score" is really important and hence people should do whatever is necessary to get whatever they can.

Are we really serious about that?

If we are serious about this, then the engineers and scientists headed to the gulf of Mexico really *should* demand all they can get. Otherwise they are selling out their profession. They are shirking their (capitalistic) duty not to.

Arguably engineers and scientists are every bit as important to society as doctors, lawyers, professional athletes and CEO's. If doctors, lawyers and professional athletes can engage in (for lack of a better word) extortion then a case can be made that engineers and scientists should also. Otherwise they are degrading their profession and giving young kids a disincentive to join their ranks. If "keeping score" so vital then the profession should do whatever is necessary to score more.

This country faces a critical shortage of people going into math, science and engineering. Could it be that low prestige and pay (relative to other similarly skilled professions) could be a factor? Could it be that bears crap in the woods?

A more interesting question is whether the low prestige and pay are partly the result of an antiquated taboo on (for lack of a better word) extortion. A taboo that has been long cast off by other professions that are competing for scarce talent.