US Postal Service 2012 Annual Report Download - page 72

2012 Report on Form 10-K United States Postal Service- 71 -
DIRECTOR COMPENSATION
The following table presents information regarding the compensation of the members of the Board of Governors.
Name
Fees earned or paid
in cash ($)
All other
compensation ($) Total ($)
Thurgood Marshall, Jr. 36,900 - 36,900
Mickey D. Barnett 37,200 - 37,200
James H. Bilbray 39,000 - 39,000
Louis J. Giuliano 38,100 - 38,100
James C. Miller III 7,167 - 7,167
Dennis J. Toner 39,000 - 39,000
Ellen C. Williams 36,900 - 36,900
Note: Each Governor receives a basic stipend of $30,000 per year plus $300 per day for not more than 42 days of meetings each year.
Governor Miller was a member of the Board during FY12 and his term ended during the fiscal year.
POTENTIAL PAYMENTS UPON TERMINATION
As described in the Compensation Discussion and Analysis, in 2009, the Postal Service entered into an employment
agreement with Joseph Corbett, the Chief Financial Officer, for recruitment and retention purposes. Mr. Corbett’s
agreement provides for deferred compensation payable in installments commencing on the date of his separation from the
Postal Service or October 22, 2019, whichever is later. In 2010, the former Postmaster General entered into an
employment agreement with Mr. Vegliante. That agreement was amended on November 14, 2011. As amended, the
agreement clarifies that Mr. Vegliante’s retention incentive is performance-based and provides for his 2012 deferred
compensation to be paid no sooner than one year after his departure from the Postal Service.
The Postmaster General and all of the other named executives are subject to the standard policies governing the CSRS
or FERS, as described in the Compensation Discussion and Analysis. The present value of these CSRS and FERS
benefits are found in the Pension Benefits table in the Compensation section of this report. The information below
describes and quantifies certain compensation, in addition to that due pursuant to CSRS or FERS, that would become
payable under existing plans and arrangements if the named executive officer’s employment had terminated on
September 30, 2012. Additionally, pursuant to statutes and regulations generally applicable to federal employees, the
named executives would be entitled to receive the federal employer’s standard contribution toward retiree health benefits,
in the event they have qualifying service and participated in the Federal Employees Health Benefits Plan for the requisite
period of time prior to retiring.
DEFERRED COMPENSATION
All federal employees, including Postal Service employees, are subject to annual compensation limits established
pursuant to federal statutes and regulations. When amounts earned by federal employees cannot be paid because of
these compensation limits, these payments are deferred until a year in which their payment would not cause total annual
compensation paid to the employee to exceed the compensation limit, or the year in which an employee leaves federal
service, whichever occurs first. Named executive officers appearing in the Nonqualified Deferred Compensation table in
the Executive Officer Compensation section of this report have deferred compensation in the amounts indicated therein.
These amounts would have been paid to them in a lump-sum or pursuant to their contract with the Postal Service
following their departure, had they ended their Postal Service employment on September 30, 2012. Mr. Corbett’s
employment agreement provides for deferred incentives linked in part to his performance. Mr. Corbett began accruing
deferred performance-based compensation at the end of fiscal year 2010. When Mr. Corbett concludes his Postal Service
employment, or on October 22, 2019, if that date is later than Mr. Corbett’s departure from the Postal Service, his deferred
compensation will be paid to him in three approximately equal annual installments. Mr. Vegliante’s 2012 deferred
compensation will be paid to him no sooner than one year after his departure from the Postal Service.
SUPPLEMENTAL PENSION BENEFIT
The Governors have not authorized a supplemental pension benefit for any executive officer at this time.