Report: Postmaster Gen. Rakes In Big Bucks

(CBS)  While the fortunes of the U.S. Postal Service spiral down, the personal wealth of the Postmaster General seems to be on the rise, according to a report in the Washington Times.

The newspaper reported that Postmaster General John E. Potter has received pay raises of 40 percent since 2006 and a bonus last year of $135,000.

His current salary is $263,575.

The updated compensation package was approved by the Postal Board Of Governors and was filed in December, the newspaper reported, adding that Potter's total windfall in 2008 was $800,000 - more than double that of President Barack Obama.

A spokesman for the Postal Service said its board of governors has authority to give extra money through deferred compensation and that key congressional offices were told, the newspaper reported.

"What members of Congress were looking at was the president of FedEx making $10 million," Gerald J. McKiernan told the newspaper. "Given the responsibility, the feeling was to retain and attract [executives] some modest increase was warranted."

"There is something to be said for attractive compensation. But at the same time, the Postal Service has a government guaranteed monopoly on the delivery of first-class mail, and UPS and FedEx don't have that," Pete Sepp, vice president of the National Taxpayers Union, told the newspaper. "Because of that, there is a fundamental difference in the Postal Service's business model and that of package delivery firms," he said.

Some of the added perks Potter received were $69,253 for security, in addition to deals on life insurance, airline travel and parking, the newspaper reported.

Just last month Potter, who is the nation's 72nd Postmaster General, taking the post in 2001, told Congress that huge deficits could force the post office to cut out one day of mail delivery per week.

As mail volume dwindles and costs rise, the post office was $2.8 billion in the red last year and, "if current trends continue, we could experience a net loss of $6 billion or more this fiscal year," Potter said in testimony for a Senate Homeland Security and Governmental Affairs subcommittee.

Overall mail volume was 202 billion items last year, more than 9 billion less than in 2007, the largest single volume drop in history.

[aheadace]

wvu7641 it's a little much when the post master makes more than the Presedent of our country i think it's time the Goverment got out of the postal business.

[widow2soon]

What does Mr. Potter actually do that actually warrents such a salary? I personally have tried to reach Mr . Potter for eight months to no avail. I did recieved two letters on behalf of Mr. Potter explaining that it was impossible for me to ever speak with Mr. Potter. The reason for my quest was to asked personel questions involving protocol since no one from the Postal system seems to have an answer. My question was regarding protocol for back up when an employee is required to serve the Navy Reserve Training. My despirate plea comes as a result of my husband of twenty-eight years tragic death on June 21, 2008. My husband felt it necessary to work for the Postal Service on Saturday due to the fact that another emergency had arisen and after four attempts to find a replacement he was unsuccesful. Consequesntly, after opening the rural Post Office he drove seventy miles to his reserve training and went directly to a firing range for a live ammunition training. It was during the last excercise that my husband lost control of his gun and accidently shot himself in the lower quandrent of his chest. In my lengthy quest to reach the Post Master General, I was told on two occasions that asking to speak with Mr. Potter, was actually like asking to speak with the President of the United States. When I finallly reached his office on the phone, his secretary hung up on me and would not let me hold. I did receive a very nice condolence letter from the White House regarding my husbands death. Our family has nothing to gain from our request. We just want a protocol so this does not happen to another family. Mr. Potter has requsted that the work week be shorten for financial reasons but not for the life of a Post Master, yet while cutting the budget, increasing the cost of stamps, he can't talk to the widow of one of his Post Masters who lost his life after serving the Postal Service on a non scheduled work day. Fortunately, the truth involving his income comes out. Again, What are his job requirements?

[indamiddle]

I dont even think even Jesus is worth $800,000.00 a year + perks.

time to stop this nonsense

[billd62]

THIS BONUS SYSTEM PERVADES ALL LEVELS OF MANAGEMENT IN THE POSTAL SERVICE. FROM POTTER TO THE POSTAL SUPERVISOR IN BACKDOOR, VT. THIS BONUS SYSTEM IS PERFORMANCE DRIVEN, AND HAS BEEN GOING ON FOR YEARS. POSTMASTERS AND SUPERVISORS VIOLATE CONTRACTS, HARASS EMPLOYEES AND WITH VERY LIMITED ACCOUNTABILITY, ALL IN AN EFFORT TO "INCREASE THE BONUS". I AGREE THAT NOT ALL IN MANAGEMENT ARE GUILTY OF REAPING THE FRUITS OF THE SYSTEM, BUT MANY ARE, BECAUSE OF WHAT THE USPS HAS BECOME. NO REPUB. OR DEM. ISSUE HERE, JUST THE OUT OF CONTROL MONEY PIT THAT IS THE USPS.

[iskra100]

"So this is why the post office keeps raising the price of stamps."

Think it through: $800k vs. $2.9 billion!

Posted by djconklin at 01:45 PM : Feb 17, 2009


Not sure what you want me to think through - I was, of course, being facetious - which doesn''t change the fact that I am tired of all of this.

[newtothis5]

Here is address to PO website with lots of info: http://www.usps.com/about/welcome.htm I think this is informative.

[wvu74621]

Overall mail volume was 202 billion items last year, more than 9 billion less than in 2007, the largest single volume drop in history.

40 million peices of mail is a drop in the bucket compared to the daily volume that the USPS processes.

Just to prove my point.
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Posted by wvu74621 at 04:12 AM : Feb 18, 2009
+ report abuse

[wvu74621]

Assuming that we are going to pay for the $.02 increase this coming year, it will take 40 million pieces of mail will compensate his salary.


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Posted by pug_ster at 10:10 PM : Feb 17, 2009
+ report abuse


40 million peices of mail is a drop in the bucket compared to the daily volume that the USPS processes.

[wvu74621]

Man leave this guy alone. He is the Director of one of the largest employers in the country. His pay is minmal compared to what civilian sector CEO''s get for running their businesses.

[newtothis5]

1st time commenting: PO is only funded through your payment for services. Not funded by tax money from the taxpayer. Granted Potter''s salary seems excessive, but I don''t see the PO asking for bailout money from the government. The PO is much more regulated than the private sector. Also, how much has FEDEX and UPS prices gone up over that few years and they can change prices at anytime they choose to cover ever expanding expenses. Also, carriers and some clerks have received a pay level increase very recently. The PO for many years was not allowed to be in the "black" for many years. Should the PO be privatized, you might find your cost of mailing a single letter or post card much more that what we pay now, and those private companies will most likely charge a surcharge to deliver to that place out in the middle of nowhere, where you have a relative residing. Also, remember the many private trucking companies and other contractor the PO supports. Many of these are small business types.