Outgoing U.S. Postmaster John E. “Jack” Potter, who earned nearly a quarter million dollars in incentive pay in 2010 on top of a $273,000 salary, is telling fellow Postal Service executives that from now on bonuses and salary increases will be tied to the agency’s financial condition.Mr. Potter said in a memo obtained by The Washington Times that for fiscal 2011, the Postal Service’s Board of Governors had decided that “all future officer executive pay and incentives will be linked to the Postal Service’s financial condition.
There has been ongoing discussion with our Board of Governors and senior management regarding executive compensation and benefits related to the financial condition of the Postal Service,” postal spokesman Gerald J. McKiernan said when asked about the pay policy referred to in Mr. Potter’s memo.
“Executive pay and incentives are linked to the overall performance of the organization, including financial performance,” he said.
It’s unclear whether the pay policy will affect top executives who already have employment contracts that include incentive payments.
In one recently approved contract with Paul Vogel, the $245,000 per-year president of shipping and mailing services, a provision states that he’ll receive, at minimum, a performance incentive of 25-percent of his basic salary at the end of each year