richard anderson amtrak salary

Yet Amtrak has been designated by the Department of Homeland His father, Hale, was an office worker for the Santa Fe in his native Texas. Volpe describes another rough estimation, asset usage allocation, as a synthetic substitute for interest and depreciation. Not covered by Amtrak Performance Tracking are Northeast Corridor track maintenance costs. There are plenty of others motivated by what Mr. Shigley above describes. He said he planned to stay on part-time as a consultant through the end of the year to see the completion of the Acela upgrade and the opening of Amtraks new base of operations in New York, at the Moynihan Train Hall across Eighth Avenue from Penn Station. When Anderson joined, it experienced two crashes in a brief span, and it didn't earn enough revenue to cover its costs. 4.5 million on 15 long-distance trainsless than 15% of total ridership. It aint gonna happen. Im certain the long-distance network is going to be very different longer term. DOT Inspector Generals report. The one thing the US cannot do is default on its debt, that standard is one of the reasons our country as been a safe place for investors world wide to be in. and future survival of the company. So, CURTIS, you can forget about your sensible position. Staff writer Juliana Reyes contributed reporting. Implementing a voluntary time off program for non-union employees, or reducing weekly hours to 32 hours per week and asking for voluntary retirements. Richard will remain with Amtrak until the end of the year as a senior advisor, working directly for Bill. News & Reviews News Wire Amtrak CEO tells employees of ridership drops, pay cuts, other plans NEWSWIRE, Capital spending slashed, long-distance capacity to be reduced; other changes still possible. In theory, choosing an independent entity like Volpe to devise an accounting system would help management keep the company solvent. The measures have been taken to protect the companys future and to avoid involuntary furloughs, Gardner wrote. We have reduced and passenger rail come from conference registrations, sponsorships and He remained with Amtrak through the end of the year as a senior advisor to his replacement, William J. Anderson leaves with a much-improved safety record for the railway and a. . degree in 1982 from the South Texas College of Law before working as a prosecutor for the district attorney office of Harris County, Texas. doesnt always want to properly fund us, and to states and private companies With our state and commuter partners, we move people, the economy and the nation forward, carrying more than 30 million Amtrak customers for each of the past eight years. He drafted the railroad section of the Heritage Foundations Mandate for Leadership (Volumes I and II), which were policy blueprints for the two Reagan Administrations; and was a guest columnist for the Cato Institutes Regulation magazine. Get updates and special offers via email from Trains.com brands! So, the train lost more than $54 million? [1], Anderson attended Texas Tech University and the University of Houston, graduating from the latter in 1977 with a degree in political science. That would be Amtrak documents received in mid-October revealed only that both men were eligible to receive up to $500,000 in annual bonuses, based on goals specified in written memoranda they agreed to with the Amtrak board of directors. Anderson will remain a senior adviser through the end of the year. That system failed to provide reliable cost accounting information essential to making prudent business decisions, according to a 2013 U.S. Mr. Flynn would be the third veteran executive from the transportation industry to run Amtrak in the last three years. Charges ranged from $400,000 to $900,000 for moving different long-distance trains from New Yorks Penn Station to Sunnyside Yard in Queens. So are these new corridors Amtrak is touting the new food source for the NEC beast? Anderson's parents both died of cancer while he was . Flynn has agreed to completely forego his annual salary from the outset. different longer term, Anderson said. Anyone can read what you share. . three months ago) this nation significantly under-invested in rail infrastructure. . Amtrak Has Lost Money for Decades. The company estimates those expenses at more than $1 billion for all long-distance trains, and $793.6 million for Northeast Corridor Acela Express and Regional trains running over multitrack, electrified infrastructure maintained to 125-to-160-mph standards. Notably, if the focus is properly narrowed to qualifications Citing anonymous sources is disingenuous. Isnt it amazing that the total amount of federally supported rail capital investment in our lifetimes, plus Amtrak and local operating subsidies for Amtrak and local transit from the federal government, is about five minutes worth of the corona virus bailout. Amtrak reported a loss of $29.8 million in its last fiscal year compared with a loss of $170.6 million in the prior fiscal year. Really? Mr. Flynn is the chairman and former chief executive of Atlas Air Worldwide Holdings, which operates cargo airlines and other airfreight businesses. The New York Times first reported that former Delta Air Lines CEO Richard Anderson will step down as Amtrak CEO in favor of William Flynn, the former CEO of cargo and charter airline Atlas Air. President. He did comedy scenes on a "screen test"-like TV series called Lights, Camera . Amtrak, which has lost vast sums of money for decades, is expected to turn an operating profit this year. Such bonuses may reach to the top of management. Mayor Petes problem is who he works for. Setting up a real accounting system would require a lot of work that many would rather not do. The real miracle is that the railroad has survived into its 50th year. WASHINGTON (Reuters) - Amtrak said Monday it had tapped Atlas Airs chief executive to run the money-losing U.S. passenger railroad that has seen record traffic. [1] Anderson, who had never considered a career in the aviation industry, accepted the position at the urging of Ben Hirst, a neighbor who worked at Continental as a legal counsel.[2]. In response to an emailed employee question later in the session, Anderson said: There are pieces of the network that ought to be permanently trimmed; you know, Ive said that for a very long time. if it is deemedessential that the new policies be articulated immediately, mr. flynn should step in early to do so. Anderson is a liar and a stooge for Trump ! government restrictions are put in place, Anderson said. WASHINGTONAmtrak Chief Executive Richard Anderson is stepping down after three years and will be replaced by the former CEO of Atlas Air Worldwide . Anderson revealed that on Thursday, March 19, Acela ridership was down 99%, Northeast Regional service was off 94%, and long-distance trains, which have yet to see any frequency cutbacks, were off 64% from the average this time of year. [8] On October 11, 2016, Anderson announced his retirement from the Board of Directors effective on the same day. The key is whether the mistakes materially affect the companys financial statements and cost allocation outcomes. Starting April 1, cutting management salaries from 22% to 7%, with the amount of reductions decreasing with the pay grade. Wonder what congress will think about all of this? future paychecks, no healthcare benefits and no jobs. There must be something he can be charged with. Now we are moving into an economy of 100% bailout and 0% investment. Why the GAO doesnt force them to turn their numbers over to an independent auditor I dont know, unless of course that would reveal some back door shenanigans with money and Congressman. Most accountants and managers learn the problems associated with managing using allocated costs; Amtrak (and Volpe) has evidently learned nothing. Rev. With many Democrats wanting socialized medicine for the U.S. imagine what health care for us would be like with Amtrak accounting. Amtrak employees rate the overall compensation and benefits package 3.9/5 stars. Of Among the challenges Amtraks chief executive has to navigate is that other railroads are the biggest users of Amtraks infrastructure in and around New York. Does he know how Amtraks inventive compensation processes work, or is he just guessing? But we are taking this action to help protect everyone. Most of them dont even seem to understand fundamental accounting principles. The other big men seem to have at least a basic grasp on the value of the LD network, and the new STB redos Amtraks accounting to make it less murky. . long-distance capacity to be reduced. The proposed $11 billion project, known as Gateway, has failed for years to gain the approval of the Trump administration. Tuesday afternoon rail news: With William Flynn set to take over Wednesday as Amtrak president and CEO, outgoing CEO Richard Anderson sent a message to employees today thanking employees for their efforts during his tenure and in the face of the ongoing COVID-19 outbreak. Sept. 30, simply because Americans have been told by their federal and state It is quite obvious that you are blinder than a bat when it comes to US passenger rail. nationwide filed that week for unemployment benefits, Anderson held a dial-in Get great snapshots of railroading history in Art Petersons newest book. The problem is, and the reason Gardner has gotten away with this for so long, Amtrak is so small, after 50 years no less!! now, which elsewhere in America are darkening family futures as did locusts us out of business, to Presidents who dont want to fund us, to Congress that Join Today! dont have a job anymore, and thats what we are working to avoid. but it is very bad form for an exiting ceo to make statements for example about future employment, positive or negative which could be reversed the very first day by the new chief executive. E.g., New Orleans-Florida, Chicago-Florida, Los Angeles-Las Vegas-Salt Lake City. Amtrak is on pace to lose $1 billion in revenue this year due to the coronavirus, Gardner wrote in the message. He did not have access to Amtraks books. An advocate and harsh critic of former Amtrak president Richard Anderson, whose fingerprints are all over what Stephen "NEC" Gardner continues to inflict, was two seats away from Anderson on a recent Delta Airlines transatlantic flight. Mr. Anderson, a former chief executive of Delta Air Lines, has been Amtraks chief executive since 2017, a memorably difficult year at Penn Station. On a Friday, March 20, when hundreds of thousands of workers Executive Vice President and General Counsel & Corporate Secretary. Its a miracle that ANY trains run. As for Amtrak, yes, they dont use GAAP and havent ever used it, no one, with the exception of their own accounts knows the true cost of the different services. But there will be no more spending on But that will be only a worst-case scenario because we dont want to furlough employees.. Yet rather than follow the business school playbook of lopping jobs as if workers are disposable office supplies, Amtrak President Richard H. Anderson is ministering to his workforce, treating workers as family by making an extraordinary effort to protect their income stream and healthcare benefits. Georgiette Morgan-Thomas heads on the platform at Penn Station in New York to board the Amtrak #89 train which leaves at 5:51 a.m. May 3, 2019. discussed, but ridership numbers are telling. NJ Transit and New Yorks Metropolitan Transportation Authority are seeking bailout funds. Amtrak owns Pennsylvania Station in Manhattan and the tunnels connected to it that cross under the Hudson River. His family, which also included five sisters, moved to Dallas and later Amarillo, Texas. Actor: Paths of Glory. While Anderson said the long-distance network is intact, Amtrak generates revenues from private cars by charging operators to haul the cars either behind regularly scheduled trains or on their own special moves. As America increasingly is sheltering in place, losing unprecedented numbers of jobs and retirement savings, fearful of COVID-19, and facing a stress level unfamiliar except to those who have endured war zones, Amtrak and its workforce face only unpleasant choices if the railroad and their jobs are to . This article should cause disgrace to suffocate those in charge of AMTRAK. These proposed corridors would be the responsibility of the states to fund & I dont think many will take the bait, so when Amtrak mgmt finally eliminates the LD routes the secret will be out about what a dog the NEC is & hopefully that will be the end of Amtrak. Together, we will get through this," General Manager Leslie Richards told employees in a letter sent Friday. But transit advocates warned that fixing the tunnels while they were being used at full capacity during rush hours would inevitably disrupt the New York regions already precarious commute. In November, Amtrak said it had set records for ridership, revenue and financial performance for the year ended Sept. 30, 2019, including 32.5 million customer trips, a year-over-year increase of. Richard Anderson, president and chief executive, says this marks . Amazing that it has survived for 50 years. It would also make a concerted effort to assign costs to the revenue-producing entities that incurred them. ' These are scary scenarios if it means discontinuing entire routes. for the fiscal year ending Sept. 30, 2019, the long-distance ridership was but a lame-duckpresident (mr. anderson) should not state policy; that is the job of new president, mr. flynn. The information contained in the documents squares with acceptable cost accounting practices. ), In that 2013 document, the Department of Transportation Inspector General determined that Amtrak Performance Tracking directly assigns 90% of its revenue to a given route, but Amtrak assigns only 20% of its costs and allocates the rest. A 2016 report by the Government Accountability Office states, Indirectly allocating a high percentage of costs, rather than directly assigning costs, increases the risk that revenues and expenses for a cost center or line of business will be misstated.. We have a strong foundation to build upon because you built it. Flynn.[11]. He retired as Delta's CEO effective May 2, 2016, and was executive chairman of the Delta Air Lines board of directors for an additional five months. that unpaid leave, uncompensated reduced hours and early retirement be taken darken skies in the Book of Exodus. Between February and July 2016, he sold $15.9 million worth of Delta stock. Mr. Anderson succeeded Charles Moorman, a former chief executive of the Norfolk Southern freight railroad. We analyze collective bargaining agreements, evaluation handbooks, salary schedules, and other documents to distill district policy across key topics such as salary, evaluation, and teacher work day. You ought to be ashamed of yourself. Those familiar with Amtraks past reluctance and dithering to run special trips would know that many Amtrak employees dont want to be bothered with extra work. Members enjoy 15% off any purchase in our store. and How Do Long Distance Trains Perform Financially? The change will come as Amtrak struggles to keep trains running through the New York region on tracks, bridges and in tunnels that are in desperate need of repair and upgrades. Related CEO Stephen Ross is a major Trump donor, and along with Trump son-in-law Jared Kushner, according to Vanity Fair magazine, is a significant user of a controversial federal program (EB-5) granting foreign nationals permanent visas in exchange for substantial equity investments at low interest rates. Richard Anderson is now a railroad guy. In 2015, he received compensation of more than $17.5 million. seeking to curtail long-distance routes. At least $1 billion in cash will flow out the door in currently anticipated losses through Sept. 30, with no assurances This is absolutely insane. the future, and to assure they do, the day-to-day struggle continues to keep Northeast Amtraks accounting systems probably perform millions of transactions every week. Last week, the company reported an operating revenue of $3.3 billion for fiscal year 2019 a 3.6% increase over the last year. Amtrak didnt want to add a third car because it would lose money because of the allocated costs. When the Southwest Chief rumbles across New Mexicos Raton Pass, with sleeping-car passengers paying as much as $1,058 to ride in a roomette, what is the trains revenue-versus-cost effect on Amtraks bottom line? Senator Chuck Schumer, a Democrat from New York who has pressed for federal funding for Amtrak and Gateway,. Flynn succeeds Richard Anderson, who joined Amtrak as CEO in July 2017. All quotes delayed a minimum of 15 minutes. Noel, no one is paying for the bailouts except those that buy government bondswhich when all is said and done can be defaulted on quite easily. The 401K retirement program match is also immediately discontinued. Under current directives, which provide no incentive for revenue gains (because the companys regional marketing positions have been eliminated), what Amtrak manager would advocate for the venue change? Much is dependent on enlightened labor leaders facing harsh reality with learned wisdom, rather than union hall polemics. Amtrak still is trying to win funding to complete major repairs and a new rail tunnel under the Hudson River in the heavily traveled northeast U.S. corridor. In 2017, Amtrak sharply curtailed the amount of information publicly disclosed in its Monthly Performance Report (from 66 pages in August to 7 pages in September). Donnelley said the private varnish business adds approximately $10 million in gross revenues to Amtrak, despite a recent Wall Street Journal article citing only a $4 million impact. "[7], On February 3, 2016, Delta Air Lines announced Anderson would retire as CEO effective May 2, 2016, and assume position as Executive Chairman of the Delta Air Lines board of directors. Emotions run strong when the long-distance network is Obtaining directs costs is more efficient, but allocating costs does not necessarily produce a bad outcome. Miami station expense included a portion for snow removal. Unlimited Members, sign in to enjoy sitewide access. safely and reliably, Anderson said. end right now.. Although Anderson said Amtrak has more than $3 billion in Were not doing any retirement incentive, but taking retirement now will open up a job for someone else in the company. The quest to stem the sources of red ink has been blessed by Amtraks board of directors and orchestrated by CEO Richard Anderson and Executive Vice President and Chief Commercial Officer Stephen Gardner. The Volpe Center, an arm of the U.S. Department of Transportation, was chosen to construct clear assignments of revenues and costs to replace Amtraks previous system. Previously, he was CEO of Delta Airlines, which after weathering the horrors of Like every major accounting system, mistakes are made, like assigning snow shoveling expenses to Miami. The highest earners in the top 75th percentile are paid over $114,293. Amtrak treats these as a capital expenditure rather than showing them as part of operating expenses. If the Chief is discontinued, the non-direct corporate overhead assigned to it will be redistributed to other services, increasing the costs for state-operated trains and forcing more expense on long-distance ledgers. It is calculated by type of asset, such as a Viewliner or locomotive, and the amount shows up as an expense charged against the route to which it is assigned. to lead an enterprise in severe peril, Andersons background is prototypical. Amtrak flirted with bankruptcy earlier in the 2000s. But be warned: exactly how Amtrak attributes expenses continues to be shrouded in mystery. As for Amtraks current travails, Anderson said the railroad is in line for a $500 million congressional grant in the first of expected stimulus measures intended as a financial bandage through June. Call it his Sully moment, after US Airways pilot Chesley Sullenberger, whose 2009 Miracle on the Hudson saved 155 souls on board his crippled A320 aircraft. As Trains was preparing this report, the Rail Passengers Association issued a white paper titled, Amtraks Route Accounting: Fatally Flawed, Misleading, and Wrong. We highlight some of its findings such as a snow-removal charge for a station in Florida. the end point of the coronavirus is.. On behalf of the entire Board, we thank you for everything you do for the company. financial contributions from private citizens and the business community. level of paycheck reduction. But recent developments have prompted an intervention by lawmakers from Kansas, Colorado, and New Mexico, who drafted funding legislation requiring Amtrak to keep the Southwest Chief running. Amtrak has to balance meeting passenger needs with a $40 billion backlog on necessary repair investments, Anderson says. In truth, I dont think anyone even wants to. everybody that the company was near liquidation and that we were going to lay NEWSWIRE. A total of $3 million in electric-traction maintenance costs were assigned to non-Northeast Corridor routes. Since its inception 53 years ago, Amtrak has grown to 20000 employees. an Amtrak paycheck, will remain through year-end as an adviser to incoming CEO William Citing studies from 2005 or 2014 or 2017 without verifying whether Amtrak management took on board the recommendations contained in them is irresponsible. The Volpe report claims this provides a more representative measure of the resource cost of all capital equipment and property, regardless of how financed, currently used by Amtrak to produce various services and outputs. Alas, its not a real expense, but an accounting device. Amtrak now projects losing $1 billion in revenue through [10] Anderson assumed the title of President on July 12, 2017. Who is this person? Nick Saban L University of Alabama $8,888,684; [12] In 2013, he was the recipient of the Tony Jannus Award for distinguished achievement in commercial air transportation. Anderson, who fulfills his three-year commitment to the company this year, will remain with Amtrak through the end of the year as a senior advisor to Flynn. Members enjoy 15% off any purchase in our store. The report would be rejected by independent, objective auditors from one of the big accounting firms. But he also has experience in the railroad industry, having been a senior executive at CSX Corporation, a rail-freight company that owns some of the tracks Amtrak runs on. Unless Amtrak can begin to expand its offerings, it will simply continue to limp along on the public dole. Anyone interested in learning how Amtrak calculates route performance, as well as the financial performance of long-distance trains, can find information in How Does Amtrak Calculate Route Financial Performance? They would also have to answer to the Volpe Transportation Center, which played a significant role in developing Amtraks cost accounting systems. In addition to a suspension of the 401K match, reduction to management pay, and its incoming CEOs deferring his salary, Amtrak is ending all non-safety-critical hiring; cutting discretionary travel, professional fees, and advertising spending; and deferring non-priority capital expenses," according to the companys statement. Is he part of the process, or is he an accounts payable clerk just trading on rumors? It is designed to make management look like they are managing by offering a bewildering mix of numbers that their government masters most likely cannot fully grasp. Mr. Sanchez, is Stephen Gardner the only person in the whole wide U.S. capable of being Amtraks President? - WSJ Dow Jones, a News Corp company About WSJ News Corp is a global, diversified media and information services. This is a joke, right? Now the return is deeply into the negative numbers, so much so that pensions might be forced into bankruptcy in the near future. Under CEO Mr Richard Anderson, the former Delta and Northwest airlines chief executive, who was . MIKE Really? Our continuing work of educating A Former Airline CEO Thinks He Can Fix It. When he took on the role of CEO, Anderson signed a three-year contract. Unlimited Members, sign in to enjoy sitewide access. ", due to significantly reduced demand in key markets, Gov. This virus is just too convenient for them to carry out the slash and burn of the national network that some have been trying for 40+ years. The performance-tracking system also plays into the continuing challenges previous Amtrak managements, boards, and Department of Transportation overseers have failed to address. Richard Anderson. The company estimates those expenses at more than $1 billion for all long-distance trains, and $793.6 million for Northeast Corridor Acela Express and Regional trains running over multitrack, electrified infrastructure maintained to 125-to-160-mph standards. and long-distance bookings are down 64%. Trains asked to see the bonus criteria as part of its request, but Amtrak had not responded by press time. As a subscriber, you have 10 gift articles to give each month. With so many costs allocated either Amtraks cost accounting is completely flawed and/or there is too much overhead, probably both. Mike, I dont like it when people slam my post, even so Im going to slam yours. 5th Paragraph: The quest to stem the sources of red ink has been blessed by Amtraks board of directors and orchestrated by CEO Richard Anderson. [1], Anderson entered the aviation industry after accepting a legal position at Continental Airlines and served as the airline's representative during the investigation of Continental Airlines Flight 1713 in 1987. I think Gardner has finally gotten it into his little head that if he touches the national network, he will be out in the street looking for a job. Bookings are down 99% on one route, almost as high on other routes, more states each day are on lockdown, virtually no one is riding the trains, and your post is the best you can come up with? Yes, this is old information, but little or nothing has been done to fix the problem, so it is still fresh information. during his three-year tenure at Amtrak, such as reducing food service and Performance Trackings inherent biases make the investment case hard to prove, with revenue and customer-usefulness benefits buried beneath massive overhead charges that would flow elsewhere as services are discontinued. (Assuming they can get past the partisan debates and arguments about how many trillions of $$$ to spend on Corona Virus bailouts). The pay cuts take effect for the first pay period in April, reflected in the employees April 17th paychecks. Other questionable allocations or indefensible errors noted in the Passenger Association report include: The Miami error was caught by the station manager there and revealed in the Government Accountability Offices 2016 report, and state operating authorities continue to comb invoices for questionable allocations. Its been a well known fact for many years that Amtraks funny money accounting system would not stand up to GAAP rules. Don't miss this look at the history of America's most influential builder of locomotives. The Silver Star and Silver Meteor still call at a facility miles from the center city, bereft of convenient rental-car or public-transportation connections. Furthermore, Amtraks new boses have adopted an active growth strategy, and congress is cristal clear that they want the LD trains to continue, and the message has gotten through. A negative response could well upset the no-furlough objective. It sounds like Amtrak management might be using the coronavirus as a tactic to get rid of some routes when that decision should be made on a more rational basis. When the good times again rollbefore COVID-19 Amtrak was reporting record revenue and ridershipthe objective is that Amtraks almost 20,000 employees will rejoice that jobs and healthcare benefits were preserved. repair. Those numbers will worsen as more Corporate services are defined to include company-wide functions such as legal, finance, government affairs, human resources, information technology, among others. We also present examples we uncovered that attempt to shine a light on a bookkeeping system that distorts a nationwide transportation mission, a mission thousands of current and former employees fought to maintain. If we end Amtrak, we end all trains. He also addressed funding requests to Congress to keep trains running, and how management plans to trim expenses, including unspecified changes to the long-distance network. Take Miami, where last May Brightline launched service from a new downtown complex. In this day and age (that is, the status quo prior to coronavirus), once service is gone on a route, it is extremely difficult to get it restored. "Please stay safe and know that your health and well-being and that of our customers is always my priority.. He is not an accountant. Incoming CEO William Flynn will succeed Richard Anderson on April 15. J. Flynn, who was hired at $475,000 annually, but told Anderson March 20 he, Given all that we have read in both this article and the comments that accompany it, putting even one more dollar into the Amtrak bank account it is a BIG mistake.

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