Postal Service executive pay ties

Full Title:
No Bonuses for Bad Service Act

Summary#

This bill would stop the Postmaster General and Deputy Postmaster General from receiving any bonus or extra pay for a fiscal year if the Postal Service fails to meet a 95% on-time delivery level for each on-time delivery target for market‑dominant products. It also requires a report to be submitted to the Postal Regulatory Commission.

  • Main change: The Board of Governors must not approve bonuses or other pay beyond basic salary for the top two executives in any year when the Postal Service does not meet the stated 95% on-time delivery threshold for every market-dominant product category target.
  • Reporting change: An existing Postal Service report must be submitted to the Postal Regulatory Commission.
  • Policy goal (implied): Link senior executive pay to delivery performance and increase outside review of Postal Service performance data.

What it means for you#

  • Postmaster General and Deputy Postmaster General: They would be ineligible for any bonus or other pay above basic salary for any fiscal year when the Postal Service fails to meet the 95% on-time standard for every market-dominant product target.
  • Board of Governors: The board would be required to withhold approval of bonuses for those executives in years when the specified performance standard is not met.
  • Postal Regulatory Commission (PRC): The PRC will receive the report specified in law (the bill adds that the report must be submitted to the PRC).
  • Mail users and the public: The bill aims to encourage improved on-time mail delivery by creating a financial consequence for top Postal Service leaders when delivery targets are missed. This could mean more focus on meeting delivery standards, but the bill does not specify actions for achieving them.
  • Other Postal Service employees and programs: The bill does not change pay or bonuses for other employees in the text provided.

Expenses#

No publicly available information.

  • The bill text does not include a fiscal note or estimate of cost.
  • Possible administrative costs could include preparing and submitting the required report to the Postal Regulatory Commission.
  • There could be indirect costs or savings if changes in executive incentives affect operations, but the bill does not estimate these.
  • It is not clear whether withholding bonuses would change overall executive compensation costs (for example, by raising base pay or other forms of compensation); the bill addresses only bonuses and other monetary pay beyond basic salary.

Proponents' View#

  • The bill appears intended to tie top executive pay to service performance by making bonuses conditional on meeting on-time delivery targets.
  • Requiring the Postal Regulatory Commission to receive the report could increase independent review and transparency of delivery performance data.
  • This could be seen as a way to hold Postal Service leadership accountable for the quality of mail delivery.

Opponents' View#

  • One concern is that the 95% threshold for every market-dominant product target may be hard to meet in some years for reasons outside management control (for example, weather, staffing shortages, or funding issues).
  • The bill does not explain how on-time delivery targets are defined, measured, or adjusted, so it is unclear how compliance would be judged and whether exceptions would apply.
  • Making bonuses all-or-nothing could reduce flexibility to reward improvements or to retain senior leaders, even if overall performance improves but one target is missed.
  • It is unclear whether the restriction affects other types of incentive pay or long-term compensation arrangements not described in the bill.
  • The bill does not include a cost estimate, so questions remain about any administrative or oversight costs for the Postal Service or the Postal Regulatory Commission.