On Friday, December 5, 2014, the 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, 2014. The report was initially delayed to the USPS hacking incident. The report is also approximately 20-30 pages shorter than reports in previous years. The report does not include the full “Operating Statistics, ” “Financial History Summary” or “Trademarks” and more as in previous years.
The report lists Top five (5) of USPS’s most highly compensated executive officers. But for the last four (4) years, Deputy Postmaster General (DPMG) is not listed in the Top 5 .Historically, the DPMG was the second most ranked USPS executive officer. However as PostalReporter reported in March 2011, 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. (note::currently Megan Brennan). The current DPMG, Ron Stroman was appointed to the position 2 weeks later effective April 2, 2011. The title should have been changed to VP of something. But it is strange that Stroman’s salary or compensation has never been reported until now (PostalReporter) . (Any bets on that factor changing by the end of this week?)
At any rate, here is the list for Top 5 out of 8 USPS executive officers (Nagisa Manabe, Chief Marketing and Sales Officer and Executive VP, Jeffrey Williamson, Chief Human Resources Officer and Executive VP and Ronald A. Stroman, Deputy PMG are not listed) :
Fiscal Year 2014 Executive Officer Compensation
Summary Compensation Table
Another item in the report is the executive officers Pension Benefits. When former Postmaster General John Potter retired in 2010, it was a huge firestorm over his retirement package. Some media websites claimed Potter was an instant millionaire with his $5.5 million in deferred compensation, retirement benefits and accrued annual leave. The people leading the charge — mostly GOP lawmakers, conservative websites and of course the Washington Post. But there was no mention of the fact that Potter’s compensation in part was awarded to him by a GOP majority Board of Governors.
The media back in 2010 also did not understand or know how to read the report on Potter’s compensation or how CSRS retirement is calculated. But the Washington Post quietly corrected its story somewhat by saying, “He’s (Potter) also accumulated about $3.06 million in benefits through the Civil Service Retirement System. CSRS payments are made annually and Potter’s sum is on par with the earnings of other federal employees who’ve served for more than 30 years, postal officials said.”
Now fast forward to 2014 and the Postmaster General Patrick R. Donahoe is retiring. As the report noted, Postmaster General Patrick R. Donahoe “asked the Governors not to award him any additional compensation, beyond salary and the general types of benefits provided to Postal Service executives. The Governors agreed.”
In the report Donahoe’s Pension Benefits is valued at $4,080,932 and the value of his accrued annual leave at $238,601. But before anyone starts asking Donahoe for a loan –the $4,080,932 represents “All named executive officers are eligible for CSRS or FERS retirement benefits available to career employees of the Federal Government. The present value of the accumulated CSRS or FERS benefit represents the value of the pension over the individual’s actuarial lifetime, as of September 30, 2014. Mr. Donahoe and Mr. Cochrane participate in Civil Service Retirement System (CSRS), and Mr. Corbett, Ms. Brennan and Mr. Marshall participate in FERS. Mr. Donahoe and Mr. Cochrane are eligible for retirement.” Corbett will receive over $200, 000 in 3 installments –in addition to the other benefits afforded execs when he retires or leaves USPS.
note: “A defined benefit pension plan is a type of pension plan in which an employer/sponsor promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee’s earnings history, tenure of service and age.”
With Donahoe’s retirement it may be the last time media and others go completely wild over a PMG’s retirement package–because Donahoe may be the last Postmaster General under CSRS which more than likely will be added as a historical fact or footnote in history books. Just imagine Donahoe in the history books.
Read the full annual report