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Entitlement Attitude :$15.9 billion loss, U.S. Postal Service execs see boost in pay
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BurfordTJustice
Nov 17, 2012, 7:30:31 AM11/17/12
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Despite nearly $16 billion in annual losses announced by the U.S. Postal
Service on Thursday, all but one of the top five executives for the nation's
mail service had an overall compensation increase this year, records show.
Unlike past years, when the Postal Service's politically appointed,
bipartisan board of governors awarded executives lucrative deferred
compensation deals and incentive bonuses, this year's compensation increases
came mostly in the form of pension plan earnings.
Postmaster General Patrick Donahoe, for instance, earned a base salary of
$276,840, but even without a bonus or incentive payout, his overall
compensation came to $512,093, compared with $384,229 in 2011, according to
regulatory filings.
Fueling the rise was the fact that his retirement account grew by $186,536.
A 37-year employee of the Postal Service, Mr. Donahoe was paid $4.76 per
hour during his first job as a postal clerk.
Meanwhile, two other executives - Ellis Burgoyne, chief information officer,
and Mary Anne Gibbons, general counsel - also received hefty increases in
their retirement plans.
In fact, Mr. Burgoyne's retirement plan grew by more than $270,000, bringing
his total compensation to $510,505, slightly less than Mr. Donahoe's.
Compensation for Joseph Corbett, the Postal Service's chief financial
officer, rose from $310,483 in 2011 to $315,841 last year, though he earned
more than $330,000 in 2010.
In addition, the Postal Service's chief human resources officer, Anthony J.
Vegilante, received $60,000 in retention bonuses for fiscal 2011 and 2012 on
top of his $240,000 annual salary, filings show. Nonetheless, Mr. Vegilante's
overall compensation for 2012 dipped to $363,002, compared with $364,667 the
previous year.
A sixth postal executive, acting Chief Financial Officer and Executive Vice
President Stephen Masse, was not subject to compensation reporting
requirements until this year, and he earned $222,919 overall.
Dave Partenheimer, a Postal Service spokesman, said the organization has
more than a half-million workers and operates more than 32,000 locations. He
said postal executive compensation lags compared with private-sector
corporations.
"As we continue to adjust to a changing business environment, it's important
that we recruit and retain the forward-thinking leadership we need to
continue to remain viable," he said. "Compensation is important to that
equation."
Unlike most private companies, however, the Postal Service has borrowed
billions of dollars from the U.S. Treasury and has a legal monopoly over
first-class mail service.
Total compensation for top postal executives is capped at $276,840, based on
a rule that executives can't earn more than 120 percent of the salary of the
vice president of the United States. But the board of governors, which
approves executive compensation for the Postal Service, can authorize
hundreds of thousands of dollars in deferred compensation payments.
The Washington Times reported last year, for instance, that retired
Postmaster General John E. Potter, now chief executive of the Metropolitan
Washington Airports Authority, was still owed more than $800,000 in deferred
compensation payments with payouts scheduled over a decade.
In an annual financial report released Thursday, the board noted that no
performance awards would be paid in 2012 because of the Postal Service's
"dire financial condition."
"Despite the many significant accomplishments of postal management during
fiscal 2012, the governors based their decisions on compensation on the fact
that the Postal Service continues to face significant financial challenges,"
the report says.
Meanwhile, Thursday's financial news continued to raise sharp questions
about the mail service's long-term future.
Announcing $15.9 billion in losses for fiscal 2012, postal officials urged
Congress to pass legislation that would address a host of issues, including
a requirement that the Postal Service pre-fund retiree health care benefits.
That mandate alone accounted for about 70 percent of the Postal Service's
net loss for fiscal 2012, officials said.
Service on Thursday, all but one of the top five executives for the nation's
mail service had an overall compensation increase this year, records show.
Unlike past years, when the Postal Service's politically appointed,
bipartisan board of governors awarded executives lucrative deferred
compensation deals and incentive bonuses, this year's compensation increases
came mostly in the form of pension plan earnings.
Postmaster General Patrick Donahoe, for instance, earned a base salary of
$276,840, but even without a bonus or incentive payout, his overall
compensation came to $512,093, compared with $384,229 in 2011, according to
regulatory filings.
Fueling the rise was the fact that his retirement account grew by $186,536.
A 37-year employee of the Postal Service, Mr. Donahoe was paid $4.76 per
hour during his first job as a postal clerk.
Meanwhile, two other executives - Ellis Burgoyne, chief information officer,
and Mary Anne Gibbons, general counsel - also received hefty increases in
their retirement plans.
In fact, Mr. Burgoyne's retirement plan grew by more than $270,000, bringing
his total compensation to $510,505, slightly less than Mr. Donahoe's.
Compensation for Joseph Corbett, the Postal Service's chief financial
officer, rose from $310,483 in 2011 to $315,841 last year, though he earned
more than $330,000 in 2010.
In addition, the Postal Service's chief human resources officer, Anthony J.
Vegilante, received $60,000 in retention bonuses for fiscal 2011 and 2012 on
top of his $240,000 annual salary, filings show. Nonetheless, Mr. Vegilante's
overall compensation for 2012 dipped to $363,002, compared with $364,667 the
previous year.
A sixth postal executive, acting Chief Financial Officer and Executive Vice
President Stephen Masse, was not subject to compensation reporting
requirements until this year, and he earned $222,919 overall.
Dave Partenheimer, a Postal Service spokesman, said the organization has
more than a half-million workers and operates more than 32,000 locations. He
said postal executive compensation lags compared with private-sector
corporations.
"As we continue to adjust to a changing business environment, it's important
that we recruit and retain the forward-thinking leadership we need to
continue to remain viable," he said. "Compensation is important to that
equation."
Unlike most private companies, however, the Postal Service has borrowed
billions of dollars from the U.S. Treasury and has a legal monopoly over
first-class mail service.
Total compensation for top postal executives is capped at $276,840, based on
a rule that executives can't earn more than 120 percent of the salary of the
vice president of the United States. But the board of governors, which
approves executive compensation for the Postal Service, can authorize
hundreds of thousands of dollars in deferred compensation payments.
The Washington Times reported last year, for instance, that retired
Postmaster General John E. Potter, now chief executive of the Metropolitan
Washington Airports Authority, was still owed more than $800,000 in deferred
compensation payments with payouts scheduled over a decade.
In an annual financial report released Thursday, the board noted that no
performance awards would be paid in 2012 because of the Postal Service's
"dire financial condition."
"Despite the many significant accomplishments of postal management during
fiscal 2012, the governors based their decisions on compensation on the fact
that the Postal Service continues to face significant financial challenges,"
the report says.
Meanwhile, Thursday's financial news continued to raise sharp questions
about the mail service's long-term future.
Announcing $15.9 billion in losses for fiscal 2012, postal officials urged
Congress to pass legislation that would address a host of issues, including
a requirement that the Postal Service pre-fund retiree health care benefits.
That mandate alone accounted for about 70 percent of the Postal Service's
net loss for fiscal 2012, officials said.
SeaNymph
Nov 17, 2012, 8:57:58 AM11/17/12
to
On 11/17/2012 6:30 AM, BurfordTJustice wrote:
> Despite nearly $16 billion in annual losses announced by the U.S. Postal
> Service on Thursday, all but one of the top five executives for the nation's
> mail service had an overall compensation increase this year, records show.
>
> Unlike past years, when the Postal Service's politically appointed,
> bipartisan board of governors awarded executives lucrative deferred
> compensation deals and incentive bonuses, this year's compensation increases
> came mostly in the form of pension plan earnings.
>
> Postmaster General Patrick Donahoe, for instance, earned a base salary of
> $276,840, but even without a bonus or incentive payout, his overall
> compensation came to $512,093, compared with $384,229 in 2011, according to
> regulatory filings.
>
> Fueling the rise was the fact that his retirement account grew by $186,536.
> A 37-year employee of the Postal Service, Mr. Donahoe was paid $4.76 per
> hour during his first job as a postal clerk.
>
>Well, there's no one but congress to thank for the fiasco the postal
> Despite nearly $16 billion in annual losses announced by the U.S. Postal
> Service on Thursday, all but one of the top five executives for the nation's
> mail service had an overall compensation increase this year, records show.
>
> Unlike past years, when the Postal Service's politically appointed,
> bipartisan board of governors awarded executives lucrative deferred
> compensation deals and incentive bonuses, this year's compensation increases
> came mostly in the form of pension plan earnings.
>
> Postmaster General Patrick Donahoe, for instance, earned a base salary of
> $276,840, but even without a bonus or incentive payout, his overall
> compensation came to $512,093, compared with $384,229 in 2011, according to
> regulatory filings.
>
> Fueling the rise was the fact that his retirement account grew by $186,536.
> A 37-year employee of the Postal Service, Mr. Donahoe was paid $4.76 per
> hour during his first job as a postal clerk.
>
service has become.
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