Ipl Boon or Bane Essay Example

Ipl Boon or Bane Essay After the grand auction was completed, there were quite a few surprises in the selection of teams and more on the amount of money spent on the cricketers. While some of them like Dhoni and Symonds might have secretly expected a payment similar to what they finally landed, others like Ishant Sharma, David Hussey would have been thrilled at such a windfall. The Bangalore team has done a thoughtful job of selecting the players who are multi-utility in nature and also those who are likely to play the inaugural season, something that the other teams have not considered.The Aussie players are not in the contention for the first season simply because of their Pakistan tour. In this context, was it worth the amount of money that was spent on their regular players? Even if they dont play, those who have signed the contract stand to gain 25% of the amount that was promised. This seems to be a bit on the higher side. Overall, cricket as a game is slowly becoming a profession of choice in India , with the money available. Few decades back, it used to be the passion of the youngsters that would decide the career.Of course, there are plenty of stories of how players had to fight against their parents to let them play the game that they love. Now, the financial viability is no longer left to be proved. This might lead to more players embracing the game. Let us see how it pans out in the near future. The other question that remains is how financially profitable this entire venture will be? Will it be a win-win situation for all the stakeholders involved? BCCI, the franchises and players. Obviously the players stand to gain but it remains to be seen how the profitability of BCCI and the franchises will work out.Innovative ideas will be worked out, so that the franchises can make use of their million-dollar players in their ranks. With all the money being splashed around, the talks of long cricketing schedules have gone out of the window. No longer are cricketers mentioning abou t how the IPL will eat into the time between tours. This only shows that cricketers are also humans and they would also like themselves to be paid reasonably for the efforts they put in on the field. Another interesting point arises then. What happens if a star player gets injured in the IPL tournament. Who will foot his bill? Will it be the BCCI or the players country?Also, if the injuries turn to be serious, it can lead to players not being able to turn out for the country in the international games. This is another aspect that all countries would do well to think about. So far, they have been agreeing for the IPL format, as they too stand to gain from the tournament (BCCI has agreed to share some of the spoils with them). Twenty20 as a game has finally emerged now after the World Cup was staged last year, this is the next prominent step. It remains to be seen if this format is used to the best impact or is it being treated just like the proverbial golden goose?

Deferred Compensation

Deferred Compensation Deferred compensation plans are arrangements by which a part of an employee’s compensation is paid at a later date, or put into investment instruments that the employee can only access at some point in the future Benefits and Hazards of Deferred Compensation There is a large variety of deferred compensation plans, arrangements by which a part of an employee’s compensation is paid at a later date, or put into investment instruments that the employee can only access at some point in the future. There are two basic reasons for deferred compensation. From the employee’s point of view, it reduces  or at least postpones his income tax liability. For employers, deferred compensation helps to manage payroll costs and can be used as an incentive for better employee performance. Types of Deferred Compensation The most common type of deferred compensation plan is the â€Å"defined contribution plan†: A  portion of the employee’s pay is deducted and invested on his behalf, usually in some form of mutual fund.   These are familiar to workers in the US as the â€Å"401(k)†, named after the section of Internal Revenue Code that pertains to them. The deferment from the employee’s salary is made before income taxes are withheld, which is a benefit to both employees and the employer. Employees do not pay taxes on their investments until they withdraw them sometime in the future, and employers are able to reduce the amount of withheld taxes they must remit to the government. Many employers also match all or part of the employee’s contribution, providing an extra incentive for employees to participate in the program; this helps to reduce the company’s transactions costs for maintaining the investment package. In the US, 401(k) programs have the added security of being protected by law from creditors in case of the company’s bankruptcy, although the value of the employees’ investments can fluctuate; in the wake of the 2008 financial crisis, millions of US workers saw the value of their 401(k) savings drop as stock markets plummeted. Other kinds of deferred compensation packages not covered by the same regulations as 401(k) programs are more risky, although they generally offer higher returns. Non-401(k) programs are generally only offered to the highest-earning employees who also pay the highest rates of income tax. The main reason for these kinds of programs is that there are legal limits on the amount of money that can be deferred into a 401(k). The main risk is that there is much less regulation of non-401(k) programs, and they are not protected from bankruptcy. Many workers in the US discovered they had lost their investments in the wake of the financial crisis when their employers declared bankruptcy. Read also:  Financial Rewards  |  Money Makes the World Go Around Stock purchase plans and stock option plans are also common forms of deferred compensation: In a stock purchase plan, the company establishes a trust to receive employee contributions, which are converted to shares of the company’s stock.   Stock purchase plans are regulated in much the same manner as 401(k) programs, the only real difference being that instead of contributions being invested in an array of mutual funds, they are only reinvested in the company. The plan is popular with employers and employees alike; for employers, the stock purchase program is reflected in better cash flow and tax savings and is seen as a useful tool to increase employee productivity. Employees benefit by gaining an ownership stake in the company, and some small degree of control over the growth in value of their investments. Stock option plans differ in that the employee is not actually compensated in the form of stock, but â€Å"earns† options to purchase the company’s stock at a low fixed price in the future.   A stock option plan has most of the same benefits as a stock purchase plan  but allows the company to keep control over its shares for a longer period. Employees in rapidly-growing companies benefit the most from stock option plans; a well-known recent example is Facebook, which launched a highly-publicized – and unintentionally controversial – IPO in 2012. Facebook employees who had exercised their options prior to the IPO were able to profit handsomely from the high price Facebook shares fetched in the market, but their returns were reduced somewhat by a condition that they hold their shares for a time before selling them; Facebook’s share price dropped rapidly after the IPO, so employees who waited too long to sell shares saw very little profit, or even lost money in some cases. Another less well-known version of a stock-based deferred compensation plan is called the â€Å"phantom† stock plan: It provides employees benefits similar to those they would receive from owning company stock, without actually giving stock to the employees.   For example, employees might be compensated in â€Å"stock credits† equivalent to shares of stock, from which they can receive bonus payments based on the stock’s performance or dividends paid. Because phantom stock plans are hard to regulate and do not provide many benefits to employers as conventional purchase or option plans. What Should  Employees Look for in Deferred Compensation Plans? Because deferred compensation programs are based on investments that can lose as well as gain value, employees considering a compensation offer should make sure they understand the details of the deferred compensation package. 401(k) programs are the most highly-regulated and most secure  but vary in the specific funds or investment instruments they contain. In the 2008 financial crisis, many 401(k) holders watched their investments vanish  because a large number of 401(k) funds were heavily invested in popular but ultimately worthless mortgage-backed securities. For stock-based deferred compensation plans, the biggest issue is what part of the employee’s compensation the plan is supposed to represent since it is very difficult to quantify the future value of stock. Employees should ask for details about whether a certain level of returns or other incentives is guaranteed, and what limits are imposed on stock purchases or sales. Compensation is compensation, whether deferred or not, and it is up to an  employee  to decide whether or not what he can expect to earn, in whatever form he will receive it, is a fair exchange for his work.