Report: Changes coming to compensation for executives

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When the Buffalo Sabres hired Dan Bylsma on Thursday one of the issues reportedly holding up the deal was compensation.

In the end, the Sabres agreed to send the Penguins a third-round selection at the 2016 NHL Draft because Bylsma was still under contract with Pittsburgh despite being fired last year.

Pittsburgh didn’t seek compensation however when New Jersey hired former Pens’ GM Ray Shero earlier this month.

Why not?

“The rule is not as clear as it should be,” Penguins GM Jim Rutherford said on Friday. “We felt that the intent of the rule was for employees that were still with the team, that were working with the team, not terminated employees.

“Once Edmonton (gave Boston) a pick for (former Bruins GM) Peter Chiarelli — when he was a terminated employee — we decided to ask for picks for future employees.”

According to Sportsnet’s Elliotte Friedman, the NHL’s Board of Governors will look to clarify the compensation rule.

During his headlines segment on Saturday night, Friedman reported that if an executive is fired by the club, that team will not receive compensation when the individual is hired by another organization.

A team would only receive compensation for an individual still working for a team.

The NHL’s Board of Governors are scheduled to meet next month when the league heads to Las Vegas for the awards.