USPS Execs Get Pay Increase, Bonuses and PMG, DPMG get new perk for FY2015

On Friday, November 13, 2015, the (Temporary) Board of Governors approved USPS’s Annual Report (10k) Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the fiscal year ending September 30, 2015. Although USPS financials were widely reported in mainstream media and postal related news websites –nothing was reported about USPS executive’s pay or the new policy for PMG and DPMG.

The report lists Top five (5) of USPS’s most highly compensated executive officers. The Deputy Postmaster General (DPMG) is not listed in the Top 5 . USPS Revised Officer List To Replace PMG In Case Of National Emergency to perform the duties of the postmaster general to Chief operating officer and executive vice president.

At any rate, here is the list for Top 5 out of 8 USPS executive officers (Randy S. Miskanic. Acting Chief Information Officer and Executive Vice President, Jeffrey Williamson, Chief Human Resources Officer and Executive VP and Ronald A. Stroman, Deputy PMG are not listed) :

Fiscal Year 2015 Executive Officer Compensation
Summary Compensation TableUSPS Execs Get Pay Increase, Bonuses and PMG, DPMG get new perk for FY2015

According to the report: At the start of calendar year 2015, the compensation system operated pursuant to its terms eligible officers received an increase in their basic compensation and a performance lump sum payment. The increases in basic compensation in fiscal year 2015 were dependent upon performance, and averaged 3%. The amount of the performance lump sum payments issued in fiscal year 2015 was again based upon performance, and averaged 4%. Further, some non-executive officers received additional financial awards in fiscal year 2015 for outstanding performance on particular strategic projects in fiscal year 2014.

When the Board of Governors appointed Patrick R. Donahoe as the 73th Postmaster General, they set his salary at the legislative salary cap. Donahoe asked the BOG not to award him any additional compensation, beyond salary and the general types of benefits provided to postal executives. The current PMG, Megan J. Brennan, likewise did not ask for any additional compensation beyond salary and the general types of benefits provided to postal executives.

The BOG’s reasoning, in part, for granting the salary increase and performance lump sum payments:

To attempt to achieve some level of comparability within the confines of the law, the Board designed a compensation system intended to balance an executive’s annual salary with the ability to earn additional compensation by meeting performance goals and objectives, and because of the compensation caps, a portion of this compensation might need to be deferred. The compensation system has not functioned as originally intended in that significant performance-based incentives have not generally been available to our officers since 2008. For the past eight years, our officer compensation system has not worked as designed because we have faced significant financial challenges caused in part by the problems with our business model. We have taken significant steps, described elsewhere in this report, to reduce costs and generate revenue. However, we have sought and continue to need comprehensive legislative change to have much greater flexibility to reduce costs, generate new revenue and return to financial stability.

The BOG also noted that USPS executives:

Even as the economy continues to be challenged, comparably sized companies typically provide their top executives with annual salaries well in excess of $1 million and total compensation and benefits valued at several million dollars. These compensation packages typically consist of annual and long-term performance incentives, including a combination of cash payments and stock options and a number of benefits and perquisites. Although our governing law provides that executives and others should be compensated at a level comparable to the private sector, the law does not afford the Governors the tools to achieve a standard of compensation comparable to the private sector. Compensation for our executive officers remains significantly below that of similarly-ranked senior executives in the private sector.

If we follow the BOG’s logic in granting postal execs salary increases and bonuses, the same rule of thumb can be applied to bargaining unit employees. Full-time employees at UPS and Fedex receive higher wages and much better benefit packages (dental in particular) than postal employees. Also, when employees from both companies (and other private sector companies) retire they receive full entitlements from Social Security. Postal Employees under CSRS on the other hand are entitled [if eligible] to only a portion of their Social Security benefits.

At the present time, contract negotiations with the APWU and NRLCA reached impasse and awaiting on either mediation and/or interest arbitration. It has been reported USPS is seeking to reduce pay scales for APWU represented employees.

USPS execs were not able to achieve goals in operations or any other area without the hard work from dedicated postal employees. The news of USPS ending FY2015 with a $5.1 billion loss AND USPS execs getting pay raises, bonuses while seeking to reduce wages of its workers is not a good look. Currently, APWU and NRLCA represented postal employees will not receive any wage increases or COLA adjustments until the respective contracts are settled.

Additionally, in November 2015, the BOG added a policy affecting the PMG and DPMG. The new policy provides that the Postmaster General and Deputy Postmaster General are entitled to a separation payment in an amount of one year’s salary if either is asked to separate from the Postal Service for any reason other than cause and they are otherwise not eligible for immediate retirement (not including early retirement, discontinued service retirement, or retirement at the minimum retirement age with less than 30 years of service). Severance may be paid in a single lump sum payment or in bi-weekly payments following the date of separation from the Postal Service.

As described in the Compensation Discussion and Analysis, in 2009 the Postal Service entered into an employment agreement with Joseph Corbett, the Chief Financial Officer, for recruitment and retention purposes. Mr. Corbett’s agreement provides for deferred compensation payable in installments commencing on the date of his separation from the Postal Service or October 22, 2019, whichever is later. Mr. Corbett is entitled to a severance payment of $230,000, in the event the Postal Service terminates his employment for any reason other than for cause or breach of contract.

Below are additional charts on USPS Execs Compensation:

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Download (PDF, 1.19MB)

30 thoughts on “USPS Execs Get Pay Increase, Bonuses and PMG, DPMG get new perk for FY2015

  1. Why is telling someone to do their job harassment. Look around where you work, if this was a private company how many of them would survive. Not many I bet. Postal employees are babies. Cry about everything and mostly what they are not getting. Management is not to blame for everything. Wake up people….Wake Up

  2. what is really funny is the fact that PMG Megan Brennen went on IOD after 2 months as a letter carrier…..priceless. only in the us postal circus!

  3. Just when you thought we were going under , the supreme beings are pulling in the big bucks. If they get stressed, they can go to their Gym.

  4. WOW!!! You get a pay raise and bonus for losing money…. And then want to close plants and AO office… what a bunch of f-ing morons.

  5. Upper management would like to have bigger bonuses. They want more money to hoard! They fill the bath tub with cash, and dive in. And as for the slaves, you have the right to work. Not the right to safe working conditions, be treated with respect, or pay! All the worker needs is enough pay to buy food to remain healthy so as to be able to work. So some want to become a Teamster and have their retirement. Their retirement was cut because congress changed the ERISA. The trustee was allowed to charge 65 million to manage the Teamster’s Central states Southeast Southwest pension plan. You can thank congress. The job of congress and the state governments is to protect business from those nasty, greedy workers. The leaders push god, guns and sports on the public to make one forget what is important. Jobs health coverage, and retirement! As for health care reform, the leaders are more concerned about corporate profit! Time to elect people that care about workers, not corporations. We live in a new nation,The United Corporations of America.

  6. Maybe those 202,000 workforce career employees left due to a concerted effort to frustrate the living hell out of retirement eligible employees and , as shown from the increase of OIG agents, an effort to bait carriers, mail handlers, and clerks…. Never heard of baiting in the Management offices where the theft takes place in TACs. Now before the self-righteous among us start to comment how the “thieves” deserve to be fired, it doesn’t take much to be fired, one only has happen to be the one to find the envelop to be ambushed by the OIG agents, then being pressured to resign or face prosecution in Federal District court where all of the US gov’t resources will be thrown at you and if you can afford an attorney, then them as well (Note: Even if you do resign, you most likely will be prosecuted anyway). If you can’t then you will most likely get an over-worked defense attorney appointed to your case, where you will be advised over and over again to plead guilty and take a lesser sentence (Note: you are a felon now and will have hell finding a job or going to any higher level education to better your life) . At which you will, because most people don’t know their rights under federal law.

  7. well now we know why there is a rate increase for 2016. Just like Wall Street bosses got raises and bonuses when they almost put the country out of business so to are the USPS bosses doing the same. They especially feel threatened because the minimum wage is going to 15 dollars and hour and it is getting too close to their rate of pay. Every thing that could be said is above. I support cutting the fat at the top to save the Post Office.

  8. the mismanaging dummies lost over $90 Billion since 2009…..they should have been given more…..for failure! ROFLMFAO!!!!!!!!!!!!!!!!!!!!!!!!!!! TRUMP 2016-2024!!!!!!!!!!!!!!!!!!!!!!!

  9. Why are you postal liberals so ungrateful? Very few postal workers are lazy, but what if we could cut the lazy, unproductive, complaining dead weight? The ones who use their job and union as a welfare system. Every station has them. The ones basically committing time theft and others have pick up their slack. What would be wrong with personal accountability with your job, not abuse, but doing the job as efficiently and to the best of his/her ability? Maybe if we cut the deadweight, others who want to be productive postal workers would have more work and more money instead of carrying a useless union member around. Stupid, stupid, lazy members. Yes, I am a proud union brother paying my dues because I believe in it, but I do not support the leeches and mooches. You know someone like this, if not, you are one. Do us a favor and just go home and apply for disibilty. Well work and pay you for it.

  10. And they will probaby also get the Thanksgiving’s they really want,while many other USPS employees could barely eat their turkey;as they tremble with FEAR!!!

  11. The information on postal execs pay and bonuses should have come out at the same time as USPS financial losses on nov 13. What does carper have to say about this?

  12. If you read branch items in the postal record, many thank the old timers who stood up back in 1970 and said no to the letter carriers union president, who was only interested in the status quo and saving his job and struck, because of the unfair pay in nyc and other areas. Our National president is again doing the same. Not interested in helping out high cost of living area’s with getting a living wage, as the federal gov’t continues to add more area’s that get area cola’s. The UAW just rec’d huge raises and a 4 year contract and contract ratification bonus checks. FedEx and ups make 30% more than us, and all they have to do is deliver parcels. We must remember forwards holds markup accountables fss dps cased mail extra bundles……….. How our go along union does nothing to raise the level of poverty many carriers endure in high cost of living areas is beyond me. Our HBP costs go up faster and more $ wise total then our salaries. And before the inexpensive areas chime in, the mail must be delivered everywhere, so just because you say MOVE, only means someone else must live in poverty somewhere delivering the mail. When will the letter carrier union execs get out of bed with elephant plaza and raise all letter carriers out of poverty with a decent contract and area wage.?????????

    • I wouldn’t be so quick to want to join the Teamsters. Retired UPS workers, just found out their pension is going to be drastically slashed, via the Teamsters, not UPS, decision.

      The local ones here, are all having to go back to work…….in their sixties and seventies…

    • Allow me to add to the answers that HA-HA is ignorant to.
      Tough luck as to your choice of living location. At 3 consecutive national conventions the members dealt with the issue of area pay. Each time it was voted down by the membership.
      Your statement that in NYC the president of the NALC in 1970 wanted to keep his job. That man your implying was not the national president yet. He was the local area president, but not the national NALC.
      National health care costs are criminal, but its big business. Why don’t you try and influence the national elections and bring this issue up for those wanting to be president?
      J. Brandt answerd your statement that not all drivers are union, FedEx is not. And as a former UPS driver myself, try lifting 50 lbs parcels (business route) all day and see if “just parcels” is so easy. Teamster pension cuts coming so.
      The grass is not always greener on the other side and have some cheese with that whine.

  13. I agree with you all here on the management description. I cant figure out why a lot of what happens continues to exist. I just come into work and tune the rest out.

    • FedEx couriers are not unionized. Can be fired at the drop of the hat. Married to one.

      Remember that the pay increases are only for the PCES and above. Front line supervisors and postmasters had a three year freeze and last year most got 1%, some up to 4% raise depending on the numbers your district produced.

  14. now you can see why there should only one union at the post office. this one union should hire a professional washington, dc labor law firm to handle all contract negotiations. having three unions has done nothing but get 1%-no great feat by any stretch. never going to happen as the 3 unions are just as greedy as the po mismanagement. as I have said many times I would vote to have UPS or FDX take us over and become a Teamster……….and this is before I just found out by reading this they get dental. just being able to purchase their stock at a discount as an employee would do it for me. UPS $104.00 FDX $179.00 just think how much 1000, or 2000 shares accumulated over 25 years would be worth…..and this has nothing to do with a teamster pension or social security. as FDR the great democrat said….you have nothing to fear but fear itself. I do think that there are a lot of po union employees that do like being treated like s@@t! low self-esteem seems like a requirement for employment at the us postal circus. at the po turds float to the top!

    • I wouldn’t be so quick to want to join the Teamsters. Retired UPS workers, just found out their retirement salary is going to be drastically slashed, via the Teamsters, not UPS, decision.

      The local ones here, are all having to go back to work…….in their sixties and seventies…

  15. Ok Rolando….. there are the numbers. Are you going to try and get us a decent contract, or are we stuck with 1% again? I assume 1% as long as the PO promises you another 30,000 Cca’s

  16. Well, nobody ought to be surprised at these figures. The BOG fails to mention one critical point, however. The big cheeses in UPS and FedEx, among other business CEO’s, CFO’s, etc., get more pay but probably do a better job. I won’t say that for certain, because I hear horror stories of corporate America grossly overpaying its executives and top level managers from all over. It’s part of the disease in business leadership that allows these people to think they are indispensable and worth every penny.
    We can comment on the USPS though, and given the terrible way they treat the public and their employees, they are indeed undeserving of their pay, and the figures and statistical bullshit has little real relevance in the operations, beyond tracking accurately the mail and parcels being shipped, pay and scheduling, hiring and retirement chores.
    What has caused the USPS management for the most part, and I do stress here there are some very qualified people amongst the rubble, has been the age old problem of promotion through incestuous or blatantly sycophantic methods. There is no point denying this happens, because I’ve seen it occur over and over and over in three+ decades of being a city carrier.
    People get into supervising through being related to others already in, and that is a huge factor in my state and district, where it seems sometimes a handful of families run everything. I have seen people hired who were abysmal as craft employees – sloppy, arrogant, and troublemakers who loved to snitch on fellow employees. They were in before they ever got past their probation thanks to Daddy, an uncle or some cousin paving the way for them, and soon after going regular, got inside. One I know was terrible. This person made enemies of all his fellow craft employees, ratted them out, and did shit I won’t even bother mentioning that would have gotten me and just about anybody else fired post haste. But through a combination of being one of the families that all get into management one way or the other and being a blatant ass kisser to management, especially when a POOM or somebody from District visited the office. It was disgusting watching this person pander and slobber all over them, but now that individual has a nice high level management job.
    We see it all the time. Piss poor employees, runners and others who think management is the pot of gold at the end of the rainbow get inside, while those of us with consciences and scruples wouldn’t touch it with a ten foot pole.
    As far as pay goes, I don’t want to price us out of a job. However, I think long time topped out carriers get screwed because we only get raises as a result of contracts and seldom even get COLA’s, any more. I think for carriers with, perhaps as an example, 20 or 25 years of service, should receive a substantial raise to reflect the long period of service, around five or six percent, not the insulting 1%. Then at 30 and in five year increments, they should get raises again.
    Additionally, because of the wear and tear on our bodies that management refuses to acknowledge, at 20 years a city carrier or even a rural should have their routes “frozen”, or adjusted to a true eight hour route and said route would be immune from further adjustments except for growth that would necessitate a route cut. That route would be subject to normal adjustments after the regular bid off that job or retired. I would think it reasonable that a senior carrier who bids on a new route should have a one year waiting period before that route be “frozen” after adjustments if need be.
    We don’t get much for all the time we put in. I get first crack at leave choices after 31+ years, and only two other carriers senior to me. We have five slots so that’s not an issue. However, except for bidding on vacant routes, and rotation call-ins, we don’t get much perks for all the time we’ve put in. My suggestions would address that issue, but the USPS would shoot it down in a hurry, and the NALC would not pursue it because they don’t seem interested in doing much of anything any more. Sad.

    • @Iop… Well said. 21+ years total. Over twelve as a clerk, mostly on the AFSM 1000 which wrecked my back and shoulders. In maintenance since then and an ET since 2010. Transferred from a great plant which is still slated to possibly close next year to a terrible one which isn’t.

  17. Welcome to the 1% Megan. Enjoy, you certainly don’t deserve it.
    Also, nice look on trying to cut the APWU wage scale, while you enter the
    1% stratosphere.

  18. The corruption in usps mgmt. continues unabated.

    Meanwhile, these same crooks and thieves, harass craft employees on a daily basis, over the most trivial things imaginable.

  19. This is what any postal employee is complaining about. We all know it. This is like it always is but for one additional caveat. Mgt is trying desperately to close down networks and it is causing terrible problems for our customers and business partners when mail is intentionally delayed. They hid they were doing this. They hide their salaries and they hide their bonus compensation. YOU SHOULD GET NOTHING WHEN YOU HARM THE SYSTEM the way they have. They should be ashamed and they will lie and hide to protect themselves. Meanwhile they hate the workforce and take it out on us! They are all protected by breach of contracts provisions and they breach our contract with them everyday!
    Good old management they are our friends? Never EVER trust them. Do not ever be lured into talking to them without Union representation.

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