Postal Chief's $384,000 Pay Sparks Call for Cut

The chief of the struggling U.S. Postal Service received $384,229 in compensation last year -- and at least one lawmaker thinks he should take a paycut.

Sen. Jon Tester, a Montana Democrat, decried top U.S. Postal Service salaries in a letter this week to the board governing the service. Tester wants top postal executives to cut their own salaries and bonuses as they move to cut mail delivery services and close postal plants and offices, laying off tens of thousands of workers.

Postmaster General Patrick Donahoe received a base salary of $271,871 in 2011, according to a November filing by the service with the Securities and Exchange Commission. But he also made another $81,954 in pension and deferred compensation. And he benefited from $30,404 in "other" compensation, including security costs, life insurance premiums, parking and financial planning services.

[Related: Five Worst Cities for Wage Growth]

Donahoe, 56, is a career postal employee who most recently served as the deputy postmaster general.

All of the top officers at the U.S. Postal Service had annual base salaries topping $200,000, according to the filing.

The Postal Service said last week it was moving forward with a plan to close more than 200 postal plants that may cost 32,000 jobs. The plan is aimed at helping the service get out of major debt caused by declining first-class mail volumes and a congressional mandate to prefund retirement health care benefits. The service reported a $5.1 billon loss for the year ended Sept. 30.

Tester said Postal Service leaders should recognize sacrifices made throughout the agency. He also said that, in the past, executives from other private companies seeking "favorable treatment from Congress" have forgone some compensation.

"To date, not a single executive has offered to forgo bonuses or reduce his salary during this difficult time," Tester wrote.

A spokesman for U.S. Postal Service said he couldn't comment on Tester's letter. But he said senior executives at the Postal Service are paid well below the compensation of similarly sized private companies in the delivery field.

"When you compare the size and scope of an organization that employs well over half a million employees operating among 32,000 locations linked by more than 210,000 vehicles, our officer compensation is well below that of similar private-sector positions," said Mark Saunders, an agency spokesman.

The CEO and chairman of United Parcel Service Inc. (UPS, Fortune 500), D. Scott Davis, made $10.7 million in 2010, the most recent pay data available for that company. That company employs 398,000 people and reported more than $3.8 billion in profits last year.

[Related: Bonus Withdrawal Puts Bankers in "Malaise"]

The CEO of FedEx (FDX, Fortune 500), Frederick W. Smith, made $7.26 million in 2011, according to financial filings. FedEx posted $1.4 billion in profit for the most recent fiscal year ended May 31 and employs 290,000.

The U.S. Postal Service is, by law, an "independent establishment" of the executive branch. The agency doesn't normally use tax dollars for operations, but it is working with a $12.9 billion loan from Treasury. Under the law, the agency is supposed to compensate senior officers comparable to similar jobs in the private sector.

Tester compared executive pay at the U.S. Postal Service to the annual salaries made by the Secretary of Treasury, Tim Geithner, and the Secretary of Defense, Leon Panetta -- $199,700.

"Both (cabinet) secretaries have accepted compensation that is likely much less than they would receive in the private sector," Tester wrote. "Public service is uniquely different and the Postal Service must rise to meet that expectation."

Last year, the U.S. Postal Service Board agreed to forgo most bonuses to top executives. Yet, Chief Operating Officer Megan Brennan and Chief Information Officer Ellis Burgoyne both got $25,000 recruiting bonuses when they were promoted to new jobs in 2011.

Donahoe's compensation in 2011 was less than half what his predecessor as postmaster general, John Potter, made in 2010 -- $798,418. Potter retired last year.

During a committee debate over a Senate bill to save the postal service last fall, Tester tried and failed to cap senior executive pay at the service to the same pay that senators make: $174,000.  source:

Mitt Romney is already singing victory: 13,000 ads vs: 200

Mitt Romney is already singing victory with 13,000 ads vs: Newt Gingrich's 200   

The super PACs have even outspent the campaigns. The group supporting Romney, Restore Our Future, spent a whopping $8.5 million on ads in Florida, while Winning Our Future, the super PAC backing Gingrich, spent about $2.2 million.

Romney was actually on the airwaves more in 2008, when he lost the state to Sen. John McCain. But in this race, he has dominated the airwaves against his rivals, airing almost 13,000 ads on broadcast television across the state, as of Wednesday, Jan. 25 -- much more than Gingrich and his support groups, which together have aired about 200 spots, according to the Weslayan Media Project.

The polls don't close until 8 p.m. tonight in the Florida Republican presidential primary, but Mitt Romney is already singing victory in a state that could be a crucial test for candidates in the November election.

"With a turnout like this, I'm beginning to feel we might win tomorrow," the former Massachusetts governor, who kept his schedule light today, said at a campaign stop on Monday.

Only four candidates on the ballot today are still in the race, but the Florida primary is really more of competition between Romney and Newt Gingrich.

Both candidates and the super PACs supporting them have spent millions of dollars in attack ads, but the former House speaker is far outweighed by his chief rival when it comes to spending.

Romney's campaign spent nearly $7 million on television ads leading up to the primary, more than six times that of Gingrich, whose campaign spent about $1 million.

The super PACs have even outspent the campaigns. The group supporting Romney, Restore Our Future, spent a whopping $8.5 million on ads in Florida, while Winning Our Future, the super PAC backing Gingrich, spent about $2.2 million.

Neither Rick Santorum nor Ron Paul, the other two candidates in the race, are on the airwaves. Both are focusing on Nevada, the next voting state

Romney was actually on the airwaves more in 2008, when he lost the state to Sen. John McCain. But in this race, he has dominated the airwaves against his rivals, airing almost 13,000 ads on broadcast television across the state, as of Wednesday, Jan. 25 -- much more than Gingrich and his support groups, which together have aired about 200 spots, according to the Weslayan Media Project.

Ninety-two percent of all TV ads aired in the Sunshine State over the last week were negative, mostly targeted at Gingrich, according to Kantar Media Campaign Media Analysis Group.

But despite the ads against him and his slump in the polls, Gingrich has given no signs of letting up, staying firm that he will stay in the race for the foreseeable future.

"I'm not going to lose big here," the former House speaker told ABC News today, adding that it's "six months or eight months" away from being over.

"I would say June or July," he added, "unless Romney drops out earlier."

Gingrich had made his mark by stellar debate performances that set him apart from other candidates. But that changed last week as Romney aggressively attacked Gingrich on his past connections to Freddie Mac and his immigration ads, assailing the former governor in a debate sponsored by CNN, the Florida Republican Party and the Hispanic Leadership Network.

Gingrich attempted to turn the tables on his rival in subsequent ads attacking his record as Massachusetts governor. In a new robo-call released ahead of the primary, Gingrich charged Romney with taking away money for kosher food for Holocaust survivors in a senior center.

Fifty delegates are at stake in today's primary, an important number for Romney.

"Today, Florida is the most important thing in the world to me," he told ABC News today.

Romney is leading by double digits over Gingrich in most polls. The most recent poll, conducted by Quinnipiac University, found Romney outshining Gingrich 43 percent to 29 percent, followed by Santorum and Paul tied at 11 percent.

Santorum, whose daughter was hospitalized earlier this week, was absent from Florida, focusing instead of campaigning in Colorado and Nevada, where caucuses will be held Saturday.

Paul plans a Florida election night party today -- but in Nevada. source:

How much does it cost to be a winner ?

Gingrich, 68, a former U.S. House speaker, arrived in Florida a week ago with the momentum of a 12-percentage-point upset win in South Carolina.

Since then, Romney and his allies have pounded Gingrich with negative television ads and on the campaign trail. They spent more than $12 million on ads in Florida, compared with $1.8 million in advertising time bought by Gingrich and his backers through Jan. 29, according to data collected by New York-based Kantar Media’s CMAG, which tracks advertising. Ninety-two percent of all TV ads aired in Florida over the last week were negative, according to the company. source: