How does the PMG’s compensation compare?
When the the original salary increase for USPS CEO Jack Potter was revealed in January, thanks to a Freedom of Information Act request by Linn’s Stamp News, the Postal Service responded to criticism of the pay hikes by issuing a list of salaries paid to CEO’s of similar organizations:
The Postal Service also noted that pay of some corporate executives who manage companies with fewer employees than the Postal Service earn far more than Potter will earn. Proctor & Gamble chief executive A.G. Lafley, for example, earns $29 million a year.
It also noted the pay of the executives of two private delivery firms: Frederick W. Smith, CEO of Federal Express earns $8.67 million and Michael L. Eskew of United Parcel Service earns $3.1 million.
The Postal Service also compared Potter’s pay with that of other postal chiefs.
Deutsche Post pays Klaus Zumwinkel $4 million. Peter Baker of Netherlands TNT earns $2.94 million, and the United Kingdom’s Royal Mail pays Adam Crozier $1.57 million. Australia Post pays CEO Graeme John$1.89 million; New Zealand Post pays CEO John Allen $733,000; Japan Post pays its president Norio Kitamura $246,737; and Canada Post pays CEO Moya Greene $483,876.
Potter’s pay trails that of three other government created organizations. Freddie Mac’s Richard Syron is earning $11.47 million, and Fannie Mae’s Daniel Mudd earns $7.59 million. The Tennessee Valley Authority pays CEO Tom Kilgore $1.6 million.
So it is true, as Postcom.org notes, that the PMG’s pay “Sounds not unlike the kind of compensation given to many post CEOs around the world.” The problem is that by rewarding the PMG with a massive bonus while asking all of the line supervisors, postmasters, managers, and executives to forgo their much smaller performance based increases, the USPS sends the message that the PMG is the only person in the organization who made a contribution this year.
November 28th, 2008 11:55
we made extreme contributions last year as Postmasters working our days off, working 10-11 hr days – some Postmasters more than that and now we will not be seeing our pay for performance which amounts to nothing – just a little reminder to the craft employees and Mr Potter – That is our raise for the year. Compared to the craft employees that have contractual increases as well as COLA’s (the last one being around 5%) we are actually losing money in the light of inflation – I do not think Mr Potter had to give up vacations and family obligations because he did not have any coverage.
November 28th, 2008 17:06
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 himself/herself–screw other managers downline and, ultimately, the company.
November 29th, 2008 00:43
I hear all the complaints about overpaid but the fact is he is underpaid. It is a miracle the work gets done while trying to manage with your hands tied behind your back. There are way too many rules from both Unions and Congress. Take the shackles off and let the USPS compete in the open market. That is the only way to save the Organization from failing. Reality tells me it will never happen and in the end rates will rise and service will suffer. I believe it is a slow train to nowhere. How sad!
November 29th, 2008 07:42
“There are way too many rules from both Unions and Congress.” Yes, it’s called a contract which BOTH sides signed. Try following it once in a while and you won’t have half the problems with the unions that you have now!
November 30th, 2008 19:11
I am sure Jack has a hard job. Who doesn’t if you work for USPS. But I don’t understand all the crying about the PO is going down the tubes and pay these kind of salaries to the big wigs in the PO. I could only imagine the money that the PO could save if they would thin out some huge making salary mangers, area managers. I am talking about managers that don’t even work in a Post Office. These big wigs set at the desk and worry the hell out of working PM and Station Managers about numbers and scores so they look good and I am sure they get some kind of bouns. And to Harry L. Harvil if we did not have unions for each craft we would not have a job because the big wigs want to contract out for cheaper pay and guess what you think service is bad know. Please, anyone would be able to work for USPS because there will be no back ground checks and managment want not have much to say because they are not there boss. The carrier is contracted out so therefore they would be on the phone calling the contractor to complain so it would not do any good for you the customer to complain to much because you will get another Tom, Dick or Harry to come in and train and screw up your mail again. Training! Who would train the new person? It takes almost 5 days for a new person to half way learn the route and USPS only wants to pay new person for 3 days. So thank you unions and only the employees have to pay for them not the customers and they come out ahead to. Oh yes by the way craft employees do make a good salary, but you can bet we sweet and we do work our tails off. Don’t believe me come try it. Stand on a hard floor for 3 to 4 hours. Load and unload mail, packages, flyers for each customer (700) on my route. Oh yeah, no matter how much mail, cert letter , stamp orders, del conf & signature comformation, regi’s and the list goes on and on, you better not lose anything, miss a scan, del all 1st class mail even if you are at the end of your route and you find a missort in dps you must turn around and del that .42 letter and be back to your P.O. by 5PM and the list goes on and on. It would take me hours to tell you about carriers duties. But my route is not as bad as some routes. I am blessed with my route and I earn every dime. I also love my customers and I pretty sure they feel the same. I give them a 150% and I hope all carriers do.
November 30th, 2008 20:40
Why don’t you postmasters strike? If you don’t like what your boss makes off YOUR backs and YOUR hard work, STRIKE!!!!!!!!!!
What is a performance based raise? It sounds like something you should get if you did a good job. Is that the way the regular employees are treated? They do a good job and get screwed? If so, you post masters do not have any reasons to complain.
December 2nd, 2008 14:48
Here’s one for you…………………Headquarters stated that all executives were giving up their raises this year due to our economic “death spiral”. But, they decided that they will all get a 10% of their salary “bonus check”. Bonus for what????
December 4th, 2008 12:43
You want to save money. Ease up on the stranglehold that the collective bargaining agreement has on the service. This are not negotiated anymore. They go before an outside body to arrbitrate these contracts. If we could get rid of the dead weight. Show folks that if you don’t do your job you won’t have one. I imagine productivity would rise. I mean since 70% of the craft employees have no college education I would liek to see you all make 20 dollars an hour at McDonalds. Unions breed whining and that is all I hear. It is sick. I hope the service does crash and puts 750,000 of you ultra dependable whinners on the street trying to find a job with no education. Your moms ought to slap each one of you.
January 9th, 2009 09:04
Hold on thar Texas OM. Would you like some cheese to go with your whine? Arbitration is a final process when collective bargaining fails to reach an agreement. Oftentimes, many issues are negotiated and it’s a few items that go to arbitration. Approximately half of all the USPS/Union contracts have been successfully negotiated.
After decades working for the Postal Service, I have seen the hierarchy impose procedures that cost a million dollars to save a nickle. I have seen the pay for performance process turn into a bloodthirsty appliance for greed. I have seen managers figuratively stab each other in the back for lack of integrity.
Don’t spout your crap about craft employees making in excess of $20 an hour. How would you like to spend eight hours in a noisy environment working mail processing? How would you like to brave 20 below temperatures, snow that comes sometimes comes up to your knees, temperatures over 100 degrees sometimes for months, hazards with every step? These are physical jobs. I have seen many a person walk in thinking they’re going to go for a walk delivering mail and finding out truly how hard the job is with all the rules and regs that are encumbered with it.
I’ll take my high school diploma over whatever degree you have because I know my customers appreciate my efforts (and not with gratuities because I ask they give to the local food pantry or Make-A-Wish).
It’s because of arrogant people like yourself, Texas OM, that the principles of hard work have diminished in the United States. So stick your degree where the sun don’t shine.
April 6th, 2009 02:16
Dear Texas OM,
I have a college degree, with post-graduate studies to boot. I choose to be a letter carrier, not because I can’t find other work but because I love the job. The biggest “dead weight” I see is the overabundance of “management.” Every time a supervisor in our office goes on vacation, we prove that the job gets done just as well with fewer non-craft people cluttering up the office. We have fewer carriers, fewer clerks, and fewer maintenance workers, yet we still have the same number of supervisors and managers. With line supervisors having no real authority due to edicts from on high, they are reduced to reading numbers from a clipboard and berating carriers who tell them their numbers are wrong.
I love my job, enjoy my route, respect my customers, and do my best every day. Despite being micro-managed every step of the day, I still give first class service to the people who pay our wages: our customers. Letter carriers are the daily face of the post office to most people in this country. My college degree doesn’t deliver the mail, I do.