I’m exclusively drawing the comparison with high demand actors / athletes. Perhaps athletes has the better clarity - many NBA players are paid more than their head coach, and even those paid less are still paid much more competitively to their revenue contribution than engineers by comparison.
Superstar athletes/actors have much higher roi - nobody is buying your product bc of star c++ developer you hired. Besides there are only like 50 or superstar players/actors at any given moment. Pretty sure you can find this many engineers who made millions
I guess we need data to back this up - I’m not buying it without more data. Even the top, top valued sports franchises only have estimated market caps in the range of $5 billion.
In other words, for small cap companies, yes, the ROI of athletes to their franchises is relatively higher than engineers to their companies. But for most of the SP500 this is not true, and there are lots of software-heavy companies with much higher market cap to the extent that even with 10k or 100k employees, I doubt an athlete’s ROI for a small sports franchise is proportional to the ROI of employees in the large company.
For example, virtually any engineer at a FAANG company should be making top pro athlete money (not considering endorsements). There are literally thousands of engineers at Amazon and hundreds at Netflix that have this ROI on the soaring revenues of these megacorps, to a much greater degree than athletes have on their teams.
This seems like it's incorrectly estimating orders of magnitude.
Some actual numbers:
In 2019, Google's gross revenue was ~$162b. ~$76b went to "costs of revenue", ~$26b went to R&D, and ~$11b to stock-based compensation. It's unclear what % of costs of revenue is attributable to "salaries of software engineers", though. Let's approach it another way. Google employs 30k+ SWEs, the vast majority of which are in the US. The median outlay probably falls somewhere in the L4 - L5 range, though there's a fat tail at the top. If we want to be conservative, we can just ignore the tail and say ~300k/dev. $300k * 30k = $9b (this is probably low).
Google's net income in 2019 was $34b. So you could multiply SWE comp at Google by not-quite-5 and zero out Google's net income.
What do top pro athletes make? Wikipedia says the top pro athletes earn mid-high eight-figures/year.
There's some headroom to pay engineers more, but it's definitely not "top pro athlete" more. Engineers can and do make that kind of money by founding & growing successful startups, not by working for FAANG (possibly with a very small # of exceptions at the top).
Also consider that top athletes can only sustain that level of pay for max 10y while engineers generally can increase their comp for much longer. All in all I don’t think it’s a good comparison bc film/sport industries have constrained supply and demand - there’s only so many teams/films each year and only so many players/credited roles.
