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PMG Gets His Bonus!
Source: Postal Regulatory Commission
Freedom Of Information Act
PMG earned $857,459 in FY 2008
At 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.
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