Is JH's floor 10 wins to return?

Submitted by MGoStrength on February 4th, 2021 at 8:07 PM

New DC, Mike McDonald's salary was recently reported by Freep here.  Sorry about the Freep as I know many don't like them.  The salary itself is nothing overly interesting ($1 million/year for 3 years), but the bonuses seem noteworthy specifically the one about wins.  McDonald gets an extra $50k for every win over 9 wins.  I've never heard of that language in a contract before for an assistant.  He doesn't get anything extra for 7, 8, or 9 wins.  But, he's gets $50k for win #10, $50k more for win #11, etc. all the way up until $200k.  Reading between the lines it almost sounds as if JH was told he needs to win 10 games to keep his job.  He's highly incentivizing his new d-coordinator to win more than 9 games.

 

Darker Blue

February 4th, 2021 at 8:12 PM ^

Sorry for the smart ass reply, I think Harbaugh is back even if he only wins 3 games. 

But I also thought that they'd give Rich Rod a 4th year and also thought that Brady Hoke was only a mediocre clapper so who knows?

RyGuy

February 5th, 2021 at 11:42 AM ^

The new contract is pretty clear in that it gives Michigan an easy out with a low buyout to fire him any time they want after this next season. No way he stays after winning only 3 games. (Unless one is OSU maybe?) I kinda feel like 8-4 is the point at which he stays, for better or worse.

Watching From Afar

February 4th, 2021 at 8:13 PM ^

He's highly incentivizing his new d-coordinator to win more than 9 games.

The D coordinator isn't going to "win" 9 games on his own. That bonus is purely a team bonus that he can contribute towards. That bonus is based on deliverables outside of his total control. Span of accountability < span on control.

The other bonuses related to scoring defense (conference and nationally) are McDonald's specific metrics.

MGoStrength

February 4th, 2021 at 8:48 PM ^

I'm not saying winning is in totally in his control. But, if it were merely to be viewed as a team bonus rather then a metric he's trying to focus his d-coordinator on, then you'd think other assistants have a similar bonus. Do any of the other assistants get $50k for a win? I'm not aware of any.

Watching From Afar

February 5th, 2021 at 10:00 AM ^

Not sure if you have a bonus structure at work, but this works out to be like a department wide bonus that you contribute towards. If the entire department succeeds, which you play a part in, you get a nice bonus. Even if you suck at your job, you get a little bonus because the whole department does well. But, if you specifically hit your individual deliverable, you get another nice bonus on top of that. Even if the department misses their goal, you still get your individual bonus because you have direct control over your specific job. That's how McDonald's bonus is structured.

His bonus for having a top 2 scoring defense in conference is $100k. Another $100k if the defense finishes in the top 10 nationally. Those are what he's being measured against, not total wins.

I'm not aware of other coordinator's incentives, though I imagine almost the entire staff gets a bonus if they win X number of games. Maybe not the same amount as coordinators play more into team wins than say the TEs coach, but something in general.

MGoStrength

February 5th, 2021 at 10:54 AM ^

I'm not sure being a single member of a department of tens or even hundreds of people is the same as being the defensive coordinator able to make up to 20% more then their salary. That would more like the VPs get a bonus for their entire staff. I think he has a more control over wins than a single member of a large corporation does.

Watching From Afar

February 5th, 2021 at 11:24 AM ^

Don't take my metaphor too literally. Also, departments aren't necessarily tens or hundreds of people. My department at work is only 9 people and we have 5,000 US employees (10k worldwide) with bonuses based on both company success and personal contribution. Span of accountability vs. Span of control is a business management principle.

The point is, I would bet all of the coaches receive bonuses depending on number of wins. OC, DC, and probably the position coaches as well to a lesser degree. I would expect the OC and DC bonuses to be the same for wins or maybe the OC's is larger due to tenure (or smaller due to the contract being older). That bonus is not because McDonald does an awesome job, though he will have to do a good one to help the team reach 9/10/11 wins. We're all in this together, your success is my success, yada yada yada. That's the team based compensation. It's used to reward people for being part of the success of the program, not for being super successful on their own. He could struggle and put out a top 30 defense but the offense carries the team to 11 wins so he gets a bonus for still helping out. He could put out a top 2 defense and not get that bonus because the offense sucks and they win 8 games. He would still get his personal bonus in that second case.

His personal bonuses based on defensive rankings can total $200k as well and is binary, not scaled for each additional ranking the defense attains. The measure of his success is not total wins. It's defensive ranking (which in turn will help the team win).

 

MGoStrength

February 5th, 2021 at 9:45 AM ^

When I make a million dollars a year? Not as important as it would be now.

I think a lot people believe there is some magic future monetary threshold that will make them content.  I don't believe that is true.  That's not human nature.  People always want more.  The only way to remain satisfied with any level of success, money, ect. is through continual growth.  I'd guess you're probably making more now than ever before in your life as most people's incomes grow over time.  I'm also guessing you're making the amount that at one point in your life you thought would make you content.  I'm guessing you'd still appreciate more.

Ecky Pting

February 5th, 2021 at 10:48 AM ^

A bonus, which is a one-time occurence, is not the same as  raise, which is recurring and is compounded by subsequent raises. Keep that in mind the next time you're discussing compensation. I'd take a 10% raise over a 20% bonus, unless I'm planning to quit in the next year.

Yooper

February 4th, 2021 at 8:16 PM ^

This is beyond stupid speculation.  Do you really think that these bonuses will actually impact coaching performance? Can’t we just give it a rest for awhile?

 

ERdocLSA2004

February 4th, 2021 at 11:31 PM ^

Better? Probably not.  Harder?  Possibly. 10 wins is a lot tho so I don’t think the idea of extra money for wins over 10 does anything for him.  If a higher percentage of his salary was incentive based then you could see someone putting in more late nights, more hours in the recruiting trail, etc.  he’s making a million whether he wins zero or 9 games tho, it’s a lot of money and he should be plenty incentivized already.

kalamazoo

February 5th, 2021 at 2:31 AM ^

Incentives work for the right personalities.

There's a lot out of their control sure, but when back is against the wall and need to prove you can make this happen, the ego can work differently. Instead of yelling and hollering and making everyone work harder, putting in longer and longer nights, one may ask others advice, may read the most strategic book from football historians, connect with the best football gods across country on schemes, learn about how to be a "Multiplier" of talent from a psychology book of similar name instead of a Diminisher, learn how to meditate and be present, stay even keeled, etc. Small percentage changes in skills can reap huge rewards.

If the offense isn't doing its thing, you would even collaborate to help them, at least be friends and provide funny or motivation sayings when passing by the offensive line, tell them you need them, do anything to motivate them in brief without usurping power.

The idea is to work smarter on the defensive side, and work cohesively with all other coordinators and the athletic dept to make each piece together better than sum of parts.

The right person will recognize a lot to get the wins and be open (humble enough) to a lot of thoughts from others.

But at worst, wins dont come and the program saves money.

MGoStrength

February 5th, 2021 at 9:03 AM ^

I would think they are giving it their all regardless. 

The idea that all employees give it their all 100% percent of the time and no incentive would change that is ridiculous.  You must not understand how the human brain works.  I can't tell you how many times I've heard someone say "if you want me to do _____, pay me more".  In this case, making $1 million is a nice cushion from your run of the mill job.  But, getting a 20% raise from bonuses is a big deal regardless of the starting salary.

Gulogulo37

February 5th, 2021 at 9:09 AM ^

Sure, but there's a big difference between someone making a million dollars slacking off some and someone working at Best Buy. I used to work at Little Caesar's and I assure you no one gave it their all, but I'm skeptical that also applies to big-time college football.

Jim HarBo

February 6th, 2021 at 9:44 AM ^

I think people really misunderstand bonus in this context.  There are bonuses for like for Sales people for a specific dollar amount of sales where a bonus is absolutely motivation.   Then there is a bonus for leadership positions a company where it is more understanding what your salary is.  It isn't meant as a oh, I'm going to coach/work harder today, it is that your salary will be X it is "I'm worth salary+bonus to the company if the company as a whole does well, but there is an understanding that my salary is based on the the whole of how the company this year".   It is very common for directors and above of companies to have this as part of their compensation package and it is NOT a daily incentive bonus per se.

Additionally, while bonus is taxed exactly income at the end of the tax year, an employer withholds less initially when given out (usually in the beginning of the year) and you have ways as receiver of the bonus to have that work to your advantage for 12 months.    In this case he'd be in the 37% federal tax margin, and only have 22% paid of his bonus.  He'd have 15% of that bonus that is owed where he can put that money in some type of action, and his financial advisor would do exactly that.    Also, for companies a bonus can be compensation that is hedged against what they are on the hook for in cases of terminations.   

No, he's not going to "work harder" every day because of the bonus, but the idea that it wasn't incentivizing for him to sign on with the possibility of having years to earn 20% more if the team does well  is redonk.   There is no salary you earn where possibly getting 20% more is not appealing.  And the fact it is incentivizing means he does believe there will be years where this comes into play which we should be happy about.

MGoStrength

February 5th, 2021 at 9:08 AM ^

I think that if our coaches are only going to try hard if we dangle carrots in front of them all the time then we've hired the wrong guys.

I think that's a bit black and white.  I'm sure there are guys that are great coaches and have the right mind set that occasionally get burnt out, frustrated, etc. that the right incentives might curb some of that and keep them pushing through the end.  I'm sure there are times for example when shit gets tough at the end of the year or going into a bowl game when some people don't have the same level of drive as the beginning of the season, particularly if there's not shot at a playoff or conference title.  An incentive like this could mean a good chunk of change in your pocket.  That might motivate a young guy who is only 33 years old.

MGoStrength

February 5th, 2021 at 9:09 AM ^

Lol I hope your downvotes are for bad math. I may be a little drunk and a little high but I don’t think 50k amounts to 20%...

LOL.  You are correct in that if he only wins one extra game that $50k is not 20% of $1 million.  But, apparently your high has prevented you from considering the max win bonus is $200k.  That is 20% of $1 million.

Amaizing Blue

February 4th, 2021 at 8:16 PM ^

I wouldn't base it on wins, I would look at the way they are playing and recruiting.  Are they getting better?  Do they look passionate about playing?  He obviously took a chance and went after young, hungry guys who are hopefully recruiting monsters.  Don't know if it will work, but at least he took a big swing at it.

Wolverine 73

February 4th, 2021 at 8:17 PM ^

No. I assume Warde wants to see a team that plays with more passion and that doesn’t lose to crap teams or get blown out by anyone.  In other words, a team we can be proud of.  I doubt anyone has set a specific number of wins as a sine qua non of returning.

dickdastardly

February 4th, 2021 at 8:22 PM ^

Jim will pull a Beilein and not only win the B1G East and B1G title game this year but take Michigan to the National Championship Game (only to lose to Alabama) and make everyone forget 2020.

kurpit

February 4th, 2021 at 10:41 PM ^

Nothing about beating OSU, winning a conference title (something the current players and students have never seen Michigan do) and losing in the playoffs sounds excruciating. It sounds like a miracle season.

Any season where Michigan finishes the season with a win against Ohio State is a phenomenal success. You know how happy this team and fanbase would be to go 8-4 with a win over OSU?

Double-D

February 4th, 2021 at 8:22 PM ^

Harbaugh is back if the Defense improves and trends up, the offense works efficiently, and recruiting momentum is continued.  This staff has potential but the roster is not at the level it needs to be.

All bets are off if we need to run the two minute offense more than four games....and if he loses to MSU again he will need to beat OSU.