By government standards, the U.S. Postal Service's top executives, with their multimillion-dollar pension packages, are doing quite well. But their compensation is lagging further behind their counterparts in private industry, according to a USPS consultant.
"Towers Watson [a major management consulting firm] found that USPS executive base salaries are significantly below market when compared against published survey data of comparable jobs in the private sector," says the Postal Service's annual financial report, released today. "Moreover, the most recent assessment using 2010 data indicates that USPS executive salaries have continued to erode further over the past twelve months."
The same report says that Postmaster General Jack Potter, who is about to retire, ended fiscal year 2010 with pension benefits worth $4.4 million and received $798,418 in total compensation for the year. His successor, Deputy PMG Pat Donahoe, has pension benefits exceeding $3 million and received $481,088 in total compensation last year.
Two other postal executives also have pension packages worth more than $1 million. Because annual pay per person is capped at $276,840 annually, the Postal Service uses a variety of perks (such as spousal travel and employer-paid life insurance) and deferred incentive compensation to attract and retain top postal executives.
The annual report seems to lay to rest any ideas that Potter, who is only 55, is being forced to retire by the Postal Service's Board of Governors:
"Due to Mr. Potter's extraordinary leadership during the difficult and unprecedented economic challenges of 2010 and the results he achieved in implementing a number of process improvements that maintained service while lowering costs, his significant staff reductions, his development of a comprehensive plan to guide the Postal Service for the next decade, and his achievement of personal goals set by the Governors for the fiscal year, the Governors determined that it was appropriate to award the incentive compensation he is entitled to receive according to his contract."
Related article: Potter Quitting the Worst CEO Job in America.
17 comments:
Fedex said no thanks to the Segway. Potter said preliminary testing was compelling enough to warrant buying more Segways. I'm not making this up.
Which postal manager commissioned this study and HOW MUCH DID IT COST? Why is this manager still employed?
Who cares if FedEx just said no to the Segway? Since they do not do door-to-door delivery their conclusions do not apply to USPS. They don't even have walking routes.
Here we go again with this double standard BS. When management finds someone making more money then they do, they say - hey, I work that hard, I should get paid the same or more. But when a blue collar worker asks for more money that mindset get turned upside down and the response is - hey, there's someone willing to do the work for less so you should take less. This way of thinking is destroying the middle class and creating a country of haves and have nots. A two class society. And if your on this website - you are most likely on your way to being one of the have nots - it's just a matter if time. Last contract carriers got about 6% over 5 years, naps got 9% and last year Potter and friends got 38%. We need to out source our over paid management in this country, they're the most overpaid (non)workers in the world.
All management should work on COMMISSION!! They get paid a percentage of the profits only if we make money. Give the BIG paychecks to the workers who actually move the mail.
If a manager or postmaster took a month off the mail would still be moved and delivered. If a clerk or carrier left their position for a month the mail would just sit there untouched. We need the mail movers not the seat sitters.
Postal execs can't be compared to the private sector because the private sector would not tolerate such poor job performance!
For the person that said, carriers received about 6% over 5 years and NAPS ( the management association) 9%. That 9% is not over 5 years some may have received that yearly. The plant where I worked, everyone received 5% a year and the chosen ones about 8%.
I think it's sad that the postal service is going to target anyone that's not an executive to cut cost. This article makes me sick to think that people actually make that kind of money and still want more. All I hear is craft is making too much money this article shows me that execs could share some of theirs with craft.
I remain confused. Dead Tree Edition, along with every other entity that posits irreverent apples-to-oranges commentary about USPS, once again demonstrates editorial ignorance. How is it when comparing out-going PMG Potter's wage and retirement package, along with that of other USPS exeuctives, there exists no problem to comparing such compensation to the private sector as being "inadequate?"
However, when referring to USPS craft workers, i.e. carriers, clerks, maintenance personnel and other bargaining unit employees, such employees are routinely and characteristically demeaned as "over paid and exceptionally compensated" in comparison to similarly situated employees in the private sector. In short, USPS management is underpaid, while USPS craft workers are overpaid. How can that be? What data supports either of these assertions?
Whadya expect from this liberal rag of a website?
Always has been and always will be, the working "man (or woman)" is the one to get screwed.
Go aheas and delude yourself about democrats fighting for the "little" people. Show me one poor poitician on either side of the table. Dems just want you to get enough to keep you being a good little "citizen" so you can keep voting them back into office.
At least the "evil" rebulicans come right out and tell you they are ging to screw you. Not try to sugar coat the screw job you are going to receive like Dems.
There was no 9% increase for NAPS members or other first line supervisors or low level managers. Many have received NO increase during some of the last 5 years.
Perhaps we should stop trying to attract the top Manager in the country. Look at what these top managers have done to the Postal Service, ran in into the ground.
The President of the United States makes a lower salary than most Company Executives. Why sould the Postmaster General be paid millions when the President isnt.
Potter get over yourself. The post office was here when you came and it will be here when you leave.
This literally makes me ill. I am a regular postal employee and see so many cuts and what they are trying to do to our jobs, and then this is what I read?? Something is seriously wrong with this.
If you're mgmt people didn't get their raise it just means they didn't hit their "performance" goals. They've got to figure out what's important.... do what it takes to hit those "performance" goals. If not it's their loss. What could be wrong with this picture?
Also on the subject of upper mgtmt, (the big cheezes) pay, they must be under paid. Less than a month to go and Potter just gave a VP a 25% "retention" payment that is renewable yearly. So this guy will get a 25% raise as long as he can "stick it out"
You could not make this into a movie.......
I'll be sure to cut short my lunch & breaks to help out the poor old Postal Service.....
Every PO employee knows how all studies, financial reports and daily numbers are fudged all the time. They are all crooks and they know it. No one is going to stop them. I noticed how lovely "significant staff reductions sounds so commendable but it's not true. Potter actually hired more staff, r,ehired retired pals and doubled their pay.The EMPLOYEES he "reduced" were injured employees.Now they are the problem of OWCP. He is closing PO's to eliminate jobs. And I can't believe this article said, "Potter has met his personal goals as set by the BOG. The goals must have been to destroy the PO, and get every nickle he could get away with. Meanwhile, craft employees have been trimed down to the bare bones and most craft employees are way overworked. PO wants to hire all temp. workers and pay them next to nothing. More money for the execs. Please keep digging. There is much more going on.
PS, I also wanted to mention that this Pay For Performance has wreaked havoc. Employees have been abused, humiliated,screamed and sworn at if their postmaster didn't make their "numbers".
Just shows the USPS Board of Governors are enablers and useless and also the House and Senate oversight committees who should have put a stop to this crooked nest feathering by Postal Service mismanagement.
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