US Postal Service 2015 Annual Report Download - page 75

2015 Report on Form 10-K United States Postal Service 73
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.
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 Executive Officer 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, 2015.
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 non-qualified 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, 2015. 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.
Supplemental Pension Benefit
The Governors have not authorized a supplemental pension benefit for any executive officer at this time.
Severance Payment
Mr. Corbett is entitled to a severance payment of $230,000, in the event the Postal Service terminates his employment for any
reason other than for cause or breach of contract.
Insurance Benefits
The Governors have not authorized supplemental insurance benefits for any executive officer at this time. The insurance
benefits to which all postal executives are entitled are described above.
Outplacement Assistance
The Governors have not authorized any outplacement assistance for any executive officer at this time.
Accrued Annual Leave
All Postal Service employees are entitled to receive and accrue paid days off, known as annual leave. Upon their separation
from the Postal Service, all employees, including the named executive officers, are entitled to be paid, in a lump-sum, the
value of all accrued annual leave. The table below shows the accrued value of the annual leave of the named executive officers,
as of September 30, 2015:
Name Value of accrued annual leave ($)
Megan J. Brennan 120,953
Patrick R. Donahoe 0
Joseph Corbett 78,415
James P. Cochrane 31,280
Thomas J. Marshall 42,792
David E. Williams 0