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New Executive Compensation Rules

CarltonTheBear

CarltonTheBear

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I'd like to start out by saying that this is not an April Fools joke. I am not a monster.

From Pierre LeBrun on TSN last night (via TLN):

(Executive compensation) is going to come into play here with this offseason, the board of governors voted it last June but didn't quite have the language set up.

Well here is how it's going to work: if it's an offseason hire for either a president of hockey operations, a GM, or a head coach - it's a third round pick that goes the other way for a guy that's under contract. If it's an in-season hire then it's a second round pick, so you think most teams would wait.

For a coach the season ends as soon as his season ends, but for a GM or a president of hockey operations, the draft is the cut off line for in-season/off-season...
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You can read a little more about it here: http://theleafsnation.com/2015/3/31/report-nhl-s-new-executive-compensation-system-will-make-replacing-leafs-gm-nonis-this-spring-a-costly-proposition

I actually completely forgot that this was coming into effect. The compensation seems much steeper than what I would have expected too. I wonder how many teams will end up feeling that the price is worth it.

I posted this in General NHL but it really has a big impact on how the Leafs could operate this season. Like the article mentions, they could be looking for replacements at both the head coach and GM position, and this makes it a lot less likely that those replacements will come from guys under contract with other NHL teams.
 
Can't say I care for this. How far does it go? If somebody wanted to hire Carlyle this summer do the Leafs get a third rounder? He is technically under contract. Or will teams have an option to waive the compensation if they chose?
 
Lynx said:
Can't say I care for this. How far does it go? If somebody wanted to hire Carlyle this summer do the Leafs get a third rounder? He is technically under contract. Or will teams have an option to waive the compensation if they chose?
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I would imagine that there's language in there that says the person being taken has to be in an active role for compensation to kick in. So guys like Carlyle and Bylsma should be able to get scooped up for free.
 
CarltonTheBear said:
Lynx said:
Can't say I care for this. How far does it go? If somebody wanted to hire Carlyle this summer do the Leafs get a third rounder? He is technically under contract. Or will teams have an option to waive the compensation if they chose?
Click to expand...

I would imagine that there's language in there that says the person being taken has to be in an active role for compensation to kick in. So guys like Carlyle and Bylsma should be able to get scooped up for free.
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I wonder if in this case, they'd need to forego further compensation under the terms of their previous contract so that they could eventually become free agents.
 
It's not super common that an exec or coach gets poached like that, is it? I mean I can think of Burke, obviously but other than that?
 
Nik the Trik said:
It's not super common that an exec or coach gets poached like that, is it? I mean I can think of Burke, obviously but other than that?
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This applies to assistants/AHL guys getting promotions from other teams too.
 
CarltonTheBear said:
Nik the Trik said:
It's not super common that an exec or coach gets poached like that, is it? I mean I can think of Burke, obviously but other than that?
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This applies to assistants/AHL guys getting promotions from other teams too.
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Oh. Well, in that case that is a semi-big deal.
 
Honestly, ignoring that the Leafs might be on the look-out for a new GM this off-season I think this is more or less fine. If the Leafs went out and hired one of the AGM's mentioned in the article and Dubas didn't like it and got offered a job elsewhere I'd want some compensation there too. I still think the way the organization got picked over in Burke's time was, if not something that needed redressing, at least something that probably shouldn't have happened.
 
I certainly understand this from the poaching talent standpoint but to me, if you fire a guy and he still collects a salary that should be the end of discussion on the need for compensation. 
 
Pierre LeBrun with a bit of an update on this:

The initial explanation on this I got from someone in the know was that he thought if you were fired, even if still under contract, that the team in question did not qualify for draft pick compensation from the team hiring the fired person. It is also what most team executives I had spoken with thought.

However, NHL deputy commissioner Bill Daly, who authored the memo on this, told ESPN.com Monday that for coaches, general managers or presidents of hockey operations who are fired but remain under contract, their teams are privy to draft pick compensation if they choose to pursue it.

But the team can also waive the draft pick compensation if they want, Daly said.

The reason many teams would waive in most cases is that they?re more interested in getting the person who is under contract but no longer working for the team off the books. So why discourage a hire elsewhere.

http://espn.go.com/blog/nhl/post/_/id/35839/teams-can-seek-draft-pick-compensation-for-fired-coaches-gms-executives

That's, uh, kinda dumb. I wonder if that gets changed at some point.
 
I think baseball has it right.

No compensation and a team can't block a promotion.  So an assistant coach is free to pursue a head coaching job.  A coach/Assistant GM can become a GM.  A GM can become a President.
A fired staff member can sign doing whatever.

But a team can't steal a GM or coach without compensation.

This NHL policy is pretty stupid.
 
CarltonTheBear said:
That's, uh, kinda dumb. I wonder if that gets changed at some point.
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I don't really see a way around it. If you made it that anyone who was fired wasn't subject to compensation then wouldn't teams just go from "firing" people to reassigning them?
 
L K said:
I think baseball has it right.

No compensation and a team can't block a promotion.  So an assistant coach is free to pursue a head coaching job.  A coach/Assistant GM can become a GM.  A GM can become a President.
A fired staff member can sign doing whatever.

But a team can't steal a GM or coach without compensation.

This NHL policy is pretty stupid.
Click to expand...

I don't agree. I think that the Baseball policy is open to easy abuse and we saw it with some of the Duquette stuff. Want him to GM the team but don't want to pay compensation? Make him President/GM like Burke was. Want a coach but don't want to pay compensation? He's Coach/DPP. Is the NHL going to have people investigating teams to make sure those positions really carry commensurate salaries/responsibilities?

The only way to have a rule like this is to make it fairly simple and straightforward and while there's at least something in the way of an intellectual justification for Baseball's policy, it would be fairly hypocritical for the NHL to have an entire CBA built around restricting player movement but then shrug their shoulders at executive movement.
 
James Mirtle brings up an interesting point, that this means the Leafs could potentially get picks for Nonis and Carlyle. Nonis is still under contract until 2018 and Randy until 2017. Those extensions might pay off after all!
 
CarltonTheBear said:
James Mirtle brings up an interesting point, that this means the Leafs could potentially get picks for Nonis and Carlyle. Nonis is still under contract until 2018 and Randy until 2017. Those extensions might pay off after all!
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I'm telling you, the Leafs need to hire and immediately fire any and all conceivable management candidates, and soon they'll be swimming in draft picks.
 
CarltonTheBear said:
James Mirtle brings up an interesting point, that this means the Leafs could potentially get picks for Nonis and Carlyle. Nonis is still under contract until 2018 and Randy until 2017. Those extensions might pay off after all!
Click to expand...

This seems so stupid.
 
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