Judicial Watch • USPS Execs Get Illegally High Salaries amid $11.6 Bil Loss

USPS Execs Get Illegally High Salaries amid $11.6 Bil Loss

USPS Execs Get Illegally High Salaries amid $11.6 Bil Loss

OCTOBER 29, 2012

Billions of dollars in the hole, the U.S. Postal Service (USPS) has never the less managed to give top executives illegally high salary and compensation packages that should outrage American taxpayers.

It was just a few weeks ago that the USPS made headlines for its record $5.2 billion loss in the last quarter of the fiscal year, bringing total losses for 2011 to an astounding $11.6 billion. To illustrate the agency’s rapid rate of decline, during the same last-quarter period in 2010 the USPS reported a loss of $3.1 billion.

Yet top executives at the devastated agency are making a killing and violating a law that caps Postal Service employee compensation in the process. Known as the Postal Accountability and Enhancement Act, the measure says employees cannot be paid more than $199,700 for calendar year 2011 with some “exceptions” allowing the amount to go as high as $230,700 for “bonuses or other awards” and $276,840 for “critical positions.”

It turns out that at least three USPS officers made more than the legal compensation limit for their respective work category, according to the agency’s inspector general. In a report made public this month, the Postal Service watchdog reveals that one of the officers, identified as the president of digital solutions, made a whopping $306,250 last year.  This exceeds even the “critical position” cap set by the federal law.  

Another employee, who was supposed to cap out at $199,700 because he/she didn’t meet any of the exception criteria, made $230,700 last year, according to the USPS Inspector General. A third agency officer, who also failed to qualify for the elevated salary, made $203,861 last year thanks to a $20,000 “incentive payment.”

Adding insult to injury, two former USPS officials will soon collect monstrous “deferred executive retention bonuses.” Former Postmaster General John Potter, currently president of the Washington Metropolitan Airports Authority, will rake in $786,301 and former Chief Information Officer Ross Philo will get $642,999.

The USPS is well known for its financial scandals. Last summer, in the midst of an $8.3 billion deficit, the agency was exposed for blowing $400,000 on professional sports tickets, booze and fancy meals. The items were purchased by USPS managers and employees with special charge cards issued to U.S. government agencies. Previous to that, two separate audits found similar wrongdoing at the struggling federal agency which has been in serious financial debt for years.  


Sign Up for Updates!

Read more about

© 2010-2015 Judicial Watch, Inc. All Rights Reserved.

  • heythere77


    This is the core of the post offices financial problems

  • heythere77

    I agree that there is waste at the top and should be stopped. However the most critical problem is the Postal Accountability and Enhancement Act passed in 2006 by Congress and made law by Bush in 2006 which mandated that the Post Office pay to the TREASURY 75 years of retire HEALTH benefits in 10 at 5.5 Billion a year. This makes the treasury’s budget look good with the infusion of money from the Post Office. However,while the Post Office could have costs equal income as it was designed to do it was unable to pay 5.5 Billion a year

  • JVP.vernon

    What is being done? I see it is pointed out as a waste, but is anything being done??? Are these folks to powerful to go to jail? I mean, if someone like me (average citizen) were to do the stuff that I read about going on in these departments, I would “go to jail”. These high level, federal government employees snubb their noses at the rest of us out here in peon land. I just wish I could do something… I write my congresswoman (R-Jamie Hurrera Beutler) voicing my position, but my senators (D-Patty Murray/Maria Cantwell) I have NO faith in, because they are liberals to the letter, and in my opinion, they, and the rest of them democrats turn a blind eye… Oh, and how ablout if Obama gets re-elected, he claims he is going to establish a “business department”. Will that be under a czar??? More government. Pretty soon everyone in the US will be government employees… We definately need change in this great country, or headlines will soon read: “what a great country they WERE”… I pray, and am hopeful that a smart, and enthusiastic younger generation will set this ship back on course. I am 58 yrs old, fully retired, but deeply saddened by what I see going on in this country, and a lot of it has to do with morals and values. God help us…

  • kylefclark

    And what does our spineless government do about it?

Sign Up for Updates!