PMG earned $857,459 in FY 2008
TweetAt a time when postal supervisors and postmasters are being asked to forgo their performance based salary increases, the Postal Service paid its Chief Executive Officer, Jack Potter, a performance bonus of $135,041, and other compensation that more than tripled his $263,575 salary. The information on bonuses for the PMG and other officers is included in the USPS 10K Report, filed with the Postal Regulatory Commission on Wednesday. The information on the PMG’s compensation package was noted earlier today on postalmag.com.
Because the Postmaster General’s pay is capped at the $263,575 figure, additional bonus payments are “deferred” until after the PMG leaves office, at which point the money will be paid to him over a ten year period. With this year’s bonuses, the PMG’s accumulated deferred compensation balance now stands at $593,648. The USPS also pays interest at the generous rate of 5% on the deferred payment balance. The $857,459 annual earnings figure is based on actual compensation received, plus the increase in the value of Potter’s deferred compensation balance and pension.
In addition to the deferred compensation, when the PMG retires, he will also be the beneficiary of a supplemental retirement fund worth $1,350,318. This fund is above and beyond the CSRS pension the PMG will be entitled to. The 10K report says that the added benefit is
… payable to Mr. Potter for his employment as Postmaster General for his attainment of required performance objectives over the six-year period from June 2001 – June 2007 and was not based on his years of service to the Postal Service. Since 2007, the Board has not continued the USPS Pension Benefit and has frozen the amount of that benefit. Instead, since that time, Mr. Potter has been eligible for a performance incentive each year if he meets required performance objectives. The above amount of USPS Pension Benefit will be paid to Mr. Potter in monthly installments during his lifetime after he leaves postal employment, with a survivor annuity equal to 55% of the amount payable to Mr. Potter.
On top of all that, the PMG is also entitled to severance pay:
…the Postmaster General is entitled to a monthly severance payment, which when added to his CSRS benefits and Postal Service pension benefit, will equal 1/12th of his annual salary at the date of the termination of his Postal Service employment. This benefit would continue for one year after the Postmaster General leaves his employment with the Postal Service. Had he terminated his employment as of September 30, 2008, the annual value of this benefit would have been $71,732. No other named executive officer may receive severance payments.
The USPS would also provide outplacement assistance to the PMG for up to two years if requested, and continue paying the full cost of his FEHB health insurance coverage for one year after he leaves the USPS.
The full text of the 10K report is available at the Postal regulatory Commission web site. The executive compensation section is available here.
November 27th, 2008 19:21
This is another example of a fat cat CEO who leaves with multiple millions of dollars and screws over the workers of the company. Alas, remember, Ken Lay, when President George W. Bush hailed him as a “great American businessman who we can all be proud of.” Well, look what happened to the employees of Enron. The “fat cats” have gotten away with too much under Bush. The time has now come for them to be held accountable which further shows that “hands off” big business has always been, is and will always be a stupid and moronic Republican Party perspective.
Secondly, with PMG Potter under alleged investigation for a questionable Countrywide Mortgage Loan, we should wait and see what occurs of this. Possibly yes, “where’s there’s smoke, there’s fire.” Hopefully, he is innocent of any wrongdoing for the sake of the USPS.
November 27th, 2008 19:25
It’s a ” Wonderful Life Mr. Potter”
November 27th, 2008 19:46
harry potter waves his wand and gets away Scott free..and next postage increase will be blamed on the letter carriers as usual
November 27th, 2008 22:32
Another slap in the faces of every clerk and carrier who actually works for a living.
November 28th, 2008 00:46
No surprise…no wonder they keep squeezing the letter carriers more and more every time. I always do the best job can, safety first…I will not worry about these pigs at the top…
November 28th, 2008 08:33
The beginning lines reads ” At a time when postal supervisors and postmasters are being asked to forgo their performance based salary increases”. This means the lower mgt will not get any increase in their salaries. unlike the craft employee who gets COLA and yearly increase as per the contract. MGT do not get any COLA and Yearly contract increases they get increases which is performance based and that is upto the ?????.
November 28th, 2008 08:51
You guys are idiots, the compensation package he is receiving is far below what other CEO’s are getting or will get. And, I remind you that none of those CEO’s head an organization the magnitude of the US Postal Sevice. If you don’t like it here, go work for those guys, I’m sure you will have a very nice holiday seeing as how those guys have put their businesses under and instead of Christmas shopping you can be job hunting.
November 28th, 2008 09:27
this gives new meaning to ‘public servant’.
November 28th, 2008 12:39
See Clearly, you are in a fog. Just because other CEOs are getting these outrageous compensation packages does not mean the Mr. Potter deserves the same. I have questioned Mr. Potter’s many decisions that have actually harmed the future of the USPS. His agreement to convert PTFs to regulars in large offices was plainly STUPID. In addition, the USPS has not really clamped down on improper bulk mailings for fear of upsetting the mailers (Netflix is a good example) and the growth management plan for new deliveries was a patchwork of ideas from the different districts with no leadership from HQ. Consequently, when the economy is now down, these prior mismanaged areas are now coming back to haunt us. The PMG has failed at “revenue protection” and “cost prevention”. Instead, he has used the art of “compromise” to get to this point. It is quite obvious that this type of leadership has compromised the future of the USPS. It is time for a new PMG who actually knows how to run a large corporation and actually leads us like Marv Runyon did during the 1990s.
November 28th, 2008 13:26
What good does it do to say anything? These guys always win in the end. Most of the big shots have no hearts for us workers. It just gets old!
November 28th, 2008 14:26
hey annoyed, you sound like a lower level supervisor who is complaining about the Cola and Contract raises that the unions BARGAIN for…….you should undestand that you automatically derive compensation from our collective efforts because mgt has to stay above the craft (approx. 7%?) per their agreement. Hence, what we negotiate for you guys just simply indirectly garner the same and then some so I believe this rant is coming from the misinformed! You must be a 204 pretender!
November 28th, 2008 14:48
Dear “See Clearly”:
No need for name calling just because someone sees the world differently than you do. $857,459 annual compensation package is a lot of money in the eyes of anyone in the actual workforce that makes the delivery/performance scores what they are. These are the people that put their backs and sweat into moving the mail, which is different from someone providing only a set of ideas that sometime produces success, but just as often does not.
Finally, what does it matter what other CEOs are paid? They are all over-paid. Your argument in this vein is no different than the immature argument that you are entitled to the same priveleges any other kid on the block because “Johnny’s parents let him do it!”
November 28th, 2008 15:21
Clearly, you should be careful about calling people idiots. Potter is making less in bonus than many CEOS who put their companies under, but he has come close to putting us under. Some of it he can’t be blamed for if you want to accuse the decrease in mail volume for our problems, but he should have seen that coming. When CEOs aren’t successful they shouldn’t get big bonuses even if it is small in comparison to others.
Craft employees aren’t guiltless either though. The work ethic in the Post office has dramatically declined in the last 35 years. Some of our employees apparently saw the Post Office as a free ride and have a strong sense of entitlement. Letter carriers are the last ones to get “sqeezed”. We reduced management, clerks, mailhandlers, then management again and this is really the first time we have ever looked at reducing carrier routes and from what I’ve observed in this district we have far too many carriers with only about 4 hours of street time, and they still ask for OT. How fair is that to their fellow carriers. The squeeze doesn’t just come from upper management but from some of your co-workers as well.
November 28th, 2008 17:10
The truth has come out. Jack Potter wanted us to give up OUR 2008 performance-based raises so he could get a bigger one for himself next year. It has come down to each person for him/herself–screw other managers downline and, ultimately, the company.
November 28th, 2008 18:20
Jack has lost touch. Let’s see, $857K in annual compensation for himself, $600K for the COO, because they had a great year in FY 2008! Record Service, work hour reduction never seen before, they did it. Now, we’re in troubled times! Freeze the executives salary, tell them that it is symbolic so we can ask for the same from the management associations, we’ll save $500K from the PCES duds anyway. Come on Jack, you didn’t give the executives a choice, and if you do know the business, the management associations ain’t going to go along with you! They worked very hard last year, where do you think the service and work hour gains came from. Now, what did craft employees get? COLA that wows, salary increases well deserved. Remember Jack record service and work hour reduction!
OK, Wanna do comparison huh, CEO to CEO or CEO to president? Well, step down a few levels? What do executives, supervisors, assembly line workers make.
Your’re out of touch. time to move on!
November 28th, 2008 22:04
I bet you he doesn’t have to worry about being buried in Potters Field.
November 29th, 2008 08:30
As Usual Mgt ( PMG ) gets bonuses for doing nothing. The clerks, carriers and other employees of the usps break their backs so mgt. and PMG Potter can benefit. Maybe he should be put in charge of Customer connect and bring in the money that he will be stealing instead of the Carriers trying to do it and then get PDI’D for coming back late even though they just brought in a $ 10,000 contract for the USPS.
November 29th, 2008 13:58
Team,
I think we all have missed the greater picture. Our way of life is in trouble and yes upper mgt is mostly to blame for the way it has conducted business, u know rewarding the incompetent cousin, brother, son, girlfriend, or boyfriend but solutions not blaming is needed now. Bottom line most USPS workers be it craft or supervisors are good workers, the challeng then is how are we going to survive this crisis with or without Jack Potter. We still need to pull it together or we will lose the slogan “Over 200 years of service and no one does it better.”
November 29th, 2008 18:02
See clearly, it’s obvious that you don’t. The Postal Service doesn’t need to be following the lead of corporate America when it comes to compensation packages. Look at all of the companies out there who are going under or looking for a bailout and tell me how the fat cat pay checks are saving their companies. The way I see it is that overcompensation of high up mucky mucks is where the problem in corporate America lies. Alot of companies wouldn’t be on such shaky ground if higher level officers were paid a sane wage.
November 30th, 2008 18:03
Anyone who hasn’t figured out what has taken place the last 8 years is a little slow. Come on folks. How much work does the PMG actually do? Who appoints him? Who is the USPS top dog? Does anyone really have any sympathy for a guy who takes a job knowing exactly what his benefits and pay are. Who decides what type of a raise and inflated benefits this guy gets? Not the people who move the mail and keept the operation going. Just like all of us lower on the food chain…………………………if you don’t like the pay, benefits and BS………………LEAVE. Everyone is replaceable. No sympathy here for the top-dog under scrutiny. Merry Christmas!!!
December 3rd, 2008 07:48
If the PMG were to earn the equivalent of his CEO counterparts, his salary would be about $35 million. The way I see it, he is underpaid. BTW, he paid his dues and worked up through the ranks, not like past PMGs (remember Carvin’ Marvin Runyon).
December 3rd, 2008 21:30
When will the Postal Unions get their head out of their butt??CEO’s of the Fortune 500 LEAVE more than that amount paid the PMG as Federal Income Taxes, yearly…PMG runs one of the largest companies in the US…the world, for that matter, next to the US Military…his salary is a drop in the bucket compared to his closest counterpart. Not to mention that his span of control is much more centralized when looking over his entire employee population…He has to deal with the NALC, APWU, Rural Carriers Union, Maintenance Workers Union, and Lord knows how many other postal alphabet unions…to please their pleadings for more cash!!…The PMG is MANDATED by FEDERAL LAW to provide every US Citizen mail deliery. Postal Employees have the best benefits of ANY federal agency, much less the private sector…Give me a break…Cut Saturday and Monday deliveries…lay off those employees with < than 6 years..get rid of T-6 employees…the list goes on…One day, postal workers will realize that their job just may NOT be that important in the future!! $900K a year for all this headache?? I don’t think so!!
December 4th, 2008 06:59
I have read these comments and wonder what each of would be doing for a living without the Postal Service. The problem with the USPS financial crisies is not caused from the PMG making $260K without benefits or the carriers or the clerks or supervisors, it is a result of economic times which have every company and family tightening their belt and congress from seeing us as a cash cow to pay for their programs. Had we not had to prepay for our health benefits at a cost of $5 billion dollars per year for the next few years, we would not be having to look at ways to severely cut costs everywhere. No other federal agency has to do this. We would be in the black. Do you know that we are the only federal agency which collective bargains? WE are lucky for that. I was in a small neiborhood post office standing in line, and there was an elderly man complaining about how the USPS should be privatized. I said that the only one that would benefit would be that company, because he wouldn’t be standing in line here he would be standing in line at the main office 15 miles away and spending $2.50 to send his letter across the country.
I don’t know about you but I have seen people get laid off and lose their pensions because of greeding owners. I believe that the organization, all of us from the top to the bottom, is doing what we can to survive.
December 5th, 2008 07:22
I think in this time of financial hardship it is outrageous for any CEO to benefit from such a large amount of money, but having said that it’s easy to say all the Posts Offices problems are the fault of one person and look how much money he’s getting blah, blah, blah, but the truth is there has been so many people and organizations within the Post Office that for years has been greedy, selfish, and down right unethical about how they have pillaged the Post Office. I certainty am not singling out anyone group, there has been mismanagement from top to bottom, and there has never been any real level of cooperation from any union. The truth of the matter is that we could all sit and point fingers at each other for months about why we’re here, having to face such dramatic change just to survive. Many employees are set in what they think they need to do and what they think they deserve, it’s going to take sacrifice from EAS, every craft, and union to get thru this peerless time, and if you are not willing to make a change or sacrifice then I feel you will be very unhappy about what is going to be coming, and good luck finding work with our pay and benefits anywhere else.
December 5th, 2008 08:09
Does anyone see what has taken place here????? The PMG got a 40% raise with perks not all of us managers receive. Come on people…………………40% and they are asking us to not take a dime this year? What is wrong with this picture. We are no longer managers but micro-managed pee-ons. What has become of the USPS. What is good for the goose is good for the gander. How about getting rid of the chip off the shoulder and asking the government to give us a little relief here? This is nuts!!!!
February 19th, 2009 09:57
big holy crap,,,, reason more stamps raise.cause of him..
thank you,,, also no more overtimes ,, we work for nothing like retarded…
February 19th, 2009 19:08
They should look at the remodeling going on at the Area offices at the Margaret Sellers P&DC in San Diego, Why is this being done in a new facility?
BD
February 26th, 2009 17:55
To See Clearly, you are part of the problem. You think that you are better than the rest. Just remember where you came from. The first rule of leadership is not to ask a person to do something you will not do yourself, second, never mess with a mans pay. If you follow these two simple rules, you will be a God amongst your workers. People follow those whom are right and do the right thing, even if nobody is there to see it. This is called “Ethics.” I have lead many men in my past military history and not one time have I ever asked anyone to do anything I would not. I had many people volunteer in my place so I could manage and take care of the rest of my Company. I hope this matter with Jack Potter puts him in jail or fired, this is unexceptable and down right dirty pool.
March 2nd, 2009 11:21
He is worth ever dollar… Especially considering what Countries are paying their PMG’s.
March 2nd, 2009 11:29
You think the PMG’s pay is bad, one should look at their consultant Accenture. The Postal Service is paying them so much for consulting that Accenture’s top consultant who runs the Post Service consulting team is making almost as much as the PMG. Incredible the amount they pay their consultant when they are losing so much money and asking their employees and others to forgo raises and go without… You never hear about the money the Government pays these consultants but someone should look into it…
March 16th, 2009 05:46
Jeff said, he is worth every dollar?! You must be at the top of management team. Good for you! I’m sure you had your great bonus as well, like the rest of all the manager and Supervisors who feels very deserving? Can’t complain, eh?! Wow, but it shouldn’t ever be that much, and at a time like this? Most of you people don’t even know what being a postal employee is about. Or, even much about the hard laborer you call the blue collars. Look around you! There are millions out there who build this so called country AMERICA with their bare hands. I’m sure the PMG never started at the bottom to even experience the labor of mail processing. Never even broke a sweat to sort a handful of mail. Alot of people who climbs up at the top always forgets where they came from and how they started. Seriously people, who the heck delivers your mail?! Doing all the dirty job and hard labor of processing, sorting, and delivering these mails that you get each day? Do you people ever even think about how these postal clerks, mailhandlers laboring at night processing mail for the next day delivery while many of you are sleeping? And, carriers who has to always carry heavy loads of mail, walk for miles and even take care not to get bitten by dogs as they deliver? And, all getting paid just an average annual salary of $53,000 even after 20 years? Believe it! 20 1/2 years & $52,600.00. Even if they say that doesn’t include the health, and vacation benefits. It’s not breaking through $80,000. Really! Some don’t even have enough to retire on, people are working well into their 70′s, 80′s and won’t even receive enough once they retire. Most CSRS employees will only receive about $1,200 a month, some are not even that? Who can live on that? And, would most likely die not even experiencing retirement. Really, talk to these people and you will know. I don’t think it should matter so much that he is overseeing over 650,000 employees, the point is, is not what he is getting paid for now enough? Aren’t all the CEO’s getting paid enough? These are all people who are Degree holders, white collar pencil pushers that sits behind an enormous desk, expensive leather seats, with a big grin on their face and never breaking a sweat. GREED, is the destruction of what most of you Americans has started building in this country, and shame on all of you for contributing to this mess. We should all go back to living simply, with contentment, and focus on how we can all make peace in the world around us. Rather than creating all this self destruction among us all, in the environment, economy, globally, and all because of the POWER and GREED.
Ok, I said my peace! I may not be highly educated like most of you I assume, but I know how to live by my means. American wake up and look back to where you all came from and how the nation all got started!
March 25th, 2009 17:50
This is really stupid. Just like all the machines the postal services buys and then they get rid of after a couple of years. They money WASTED. This guy and his fat cats under him AND this goes all the way down to the poor managers who make 80,000 a year boo hoo. I don’t even feel sorry for them.
They don’t lift their fingers let alone a Mail bag or 50 pound parcels. Our Manager doesn’t want to get us change for the window or STAMPS TO SELL. She is to busy. It might cut into her time talking and laughing to her friends on the phone or while she pays her personal bills.
And they all probably do the same. They get paid to sit on their butts in their warm offices (next to heaters) while carriers freeze in the winter or in air in the summer. AND WHY ARE THEY COMPLAINING???
AND THE POST OFFICE IS WONDERING WHY THEY ARE LOOSING MONEY???
GET A GRIP. START WHERE YOU NEED TO START AND CUT THOSE JOBS.
NOT PEOPLE WHO ACTUALLY WORK.
OUR MANAGER HANGS UP ON CUSTOMERS AND YELLS AT THEM ON THE PHONE AND THEN SAYS THEY ARE RUDE BECAUSE SHE IS A BLACK WOMAN.
WHAT A BUNCH OF BULL. WE need to take care of our customers get rid of Managers that act this way. Get the postal service back to the people who actually work for a living.
March 25th, 2009 21:45
JR is right. The money the USPS is dumping into Accenture is ridiculous. Now they are putting Accenture in charge of major projects so it is as if Postal employees are being contracted out to Accenture… Not to mention the risky business of giving them access to the USPS sensitive detailed system designs…. unbelievable.