#driver salary

[alianoralacanta]

Driver Salary Criteria (02-01-2007)

Context: New year, new post. This one got prompted about a question about why there was so much talk about Fernando Alonso, newly-minted double-world champion transferring from Renault to McLaren, was reputing to be earning so much money. Please be aware that all currency figures are taken from news reports of the time. I'm fairly sure at least some of them were later debunked but cannot recall which ones.

Warning! Long Post alert!

Alonso is getting paid a fortune by McLaren because McLaren usually pays better than Renault, plus he's won two championships. Raikkonen is getting paid a king's ransom to act as an incentive to leave McLaren's comfy confines plus Ferrari expects him to be the next Michael Schumacher. I might as well add that Sato's getting a huge payment next year because Super Aguri expect him to make them a respectable team. The amount a driver earns in a given contract period depends on the following:

1) the driver's performance in the 12-18 months before the contract was signed. Alonso and (probably) Raikkonen will be earning based on 2005 and Sato based on 2006. Some others - for example the performance part of Button's current retainer [-] is [are] based mostly on 2004.

2) the team's expectations of the driver's performance in the next contract period. This is why Raikkonen's and Sato's salaries have jumped - the former is expected to perform much better on-track in 2007 and the latter is expected to perform much better off-track in 2007 (in terms of technical feedback and so on).

3) the respective skill of the team negotiators and driver manager. If the former are stronger, the driver's salary will be low. The most notable example of this is Renault, where Flavio Briatore managed to pin both Alonso and Fisichella onto $9m/year salaries for 2005-2006. As McLaren is now demonstrating, Alonso would have earned more than $9m/year on the open market.

Where the drier manager has the upper hand, then otherwise-inexplicable salaries can appear (e.g. Willi Weber overpowering Toyota's negotiators to give Ralf Schumacher a salary between $19m and $25m per year).

4) Marketing value. Being successful is valuable and this must surely be helping to fuel Alonso's salary. However, this is not always the whole story - the 1997 championship was not Jacques Villenueve's entire marketing value to BAR, and the entire pay-driver market these days is based upon marketing value. Neither is it an accident that Red Bull drivers are going to occupy the Toro Rosso seats - we just don't know which ones yet.

Hopefully, this helps explain a few salary anomalies.

[intermodalism]

Driver wages could cause 18% increase in Truckload rates

Driver wages could cause 18% increase in Truckload rates

William B. Cassidy, Senior Editor JOC | Mar 25, 2015 3:44PM EDT

Hefty increases in truck driver wages will propel truckload rates higher in 2015 and beyond, potentially pushing pricing up by double digits, a transportation analyst warns. Truckload rates may need to rise as much as 12 to 18 percent to pay for higher driver wages.

“While our current earnings models assume low-to-mid-single-digit…

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