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Really???

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Posted by charlie hebdo on Friday, October 7, 2022 9:50 AM

It's ridiculous. By comparison, the head of Deutsche Bahn, a much larger organization, gets 990,000 € and that was subject to approval by its union.

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Posted by Overmod on Friday, October 7, 2022 11:05 AM

Not just in the low six-figure range, either.  From the Post's story:

 

Perhaps one of our accountants, like jps1, might comment on what this 'earned incentive' bonus is based on, and what they did to earn it.

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Posted by York1 on Friday, October 7, 2022 11:33 AM

Since the US government owns the Amtrak stock, who exactly sets these salaries and benefits?

I'm not going to complain too much -- many private or publicly traded companies have executives earning much more.

I guess to me, this isn't as outrageous as it first appears.  Are they and the work they are performing not worth the money?  A lot of people could have said that about my salary, too, and I probably would have agreed with them.

However, for a government-owned corporation, these salaries and bonuses (I assume this doesn't include the cost of benefits) seem high.  Who exactly has oversight over the salaries and bonuses?

York1 John       

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Posted by BaltACD on Friday, October 7, 2022 1:17 PM

York1
Since the US government owns the Amtrak stock, who exactly sets these salaries and benefits?

I'm not going to complain too much -- many private or publicly traded companies have executives earning much more.

I guess to me, this isn't as outrageous as it first appears.  Are they and the work they are performing not worth the money?  A lot of people could have said that about my salary, too, and I probably would have agreed with them.

However, for a government-owned corporation, these salaries and bonuses (I assume this doesn't include the cost of benefits) seem high.  Who exactly has oversight over the salaries and bonuses?

I suspect, in football crazy states, some High School football coaches are earning in the same neighborhood.

Never too old to have a happy childhood!

              

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Posted by CMStPnP on Friday, October 7, 2022 7:09 PM

charlie hebdo
It's ridiculous. By comparison, the head of Deutsche Bahn, a much larger organization, gets 990,000 € and that was subject to approval by its union.

I think that is a superficial comparison......

Fundamentally comparing Germany or Europe with the United States is highly skewed to begin with just based on differences.....

1. College education is largely free in Germany.

2. Rail mileage might be greater on DB but it is highly duplicitous and parallel in a much more compact area.   I am sure that a lot of the professional railroad employees here in the Trains forum wish their rail systems were as compact because if they were..........no problem being home every night in a lot of cases.

3. Then of course there is the dramatic difference in cost of living that you also get with a much smaller country with a highly compact industrialization base.   Make sure you scroll down on the list in the link below.    

https://livingcost.org/cost/germany/united-states

4.  Then of course we get to the key part that is missing.   German Executive Salaries are in part (but not fully) regulated by the German Federal Government and are not subject to much in the way of open market influences of competition between firms for talent as they are in the United States.

5. I might also mention that our K-12 education system is pretty horrible as well which forces American Companies to require a college degree probably in a slightly higher percentage than overseas.    Though just a hunch on my part.   I seem to remember though that many white collar jobs that previously did not require a college degree in this country do so now because employers no longer really trust the end results of our K-12 education system.

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Posted by CMStPnP on Friday, October 7, 2022 7:22 PM

York1
Since the US government owns the Amtrak stock, who exactly sets these salaries and benefits?

They are set by the Board of Directors which coincidentally is usually made up of other CEO's and / or Senior Executives from other firms.    Though I believe in Amtrak's case politicians can call in a favor or issue a favor and get another politicians Son on the Amtrak board if they want to because of the government management part of Amtrak.    So I think the government appoints at least part or all of the Amtrak board for that above example to happen.......and it did.

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Posted by charlie hebdo on Saturday, October 8, 2022 8:43 PM

CMStPnP
1. College education is largely free in Germany. 2. Rail mileage might be greater on DB but it is highly duplicitous and parallel in a much more compact area.   I am sure that a lot of the professional railroad employees here in the Trains forum wish their rail systems were as compact because if they were..........no problem being home every night in a lot of cases. 3. Then of course there is the dramatic difference in cost of living that you also get with a much smaller country with a highly compact industrialization base.   Make sure you scroll down on the list in the link below.    

1.Irrelevant.

2.Size of corporation on metrics such as revenue, assets, # employees would be the relevant metrics.

3. The government does not set salaries. Germany is a free market economy. Unions are represented in corporate governance. 

Herbert Diess, the chief executive of Volkswage topped the list of Germany’s highest paid CEOs on the German DAX in 2019, earning €9.9m (£8.9m, $11.3m), according to an annual survey by the Technical University of Munich and the German Association for the Protection of Securities (DSW).Dieses was fired this year. 

Perhaps American execs are overpaid, and why is the Amtrak guy getting performance-based bonuses?

 

 

 

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Posted by PJS1 on Saturday, October 8, 2022 9:21 PM

York1
 Who exactly has oversight over the salaries and bonuses? 

In the three Fortune 200 Corporations that I worked for, the compensation packages of the CEO and members of the executive committee were adopted and overseen by the board of directors’ compensation committee.  It was usually made up of three to five members of the board.  They relied heavily on compensation consultants in structuring the compensation packages for the company’s executives.  I suspect Amtrak has the same arrangement. 
 
The CEO, as well as any other executive members of the board or executives that regularly attend the board meetings, is out of the room when the board votes on their compensation packages.  
 
My 40-year career with three Fortune 200 Corporations included stints in HR, accounting, finance, and audit.  In HR I worked in compensation and benefits for three years.  In that role I worked with some of the nation’s largest compensation and benefits consultants. 

Rio Grande Valley, CFI,CFII

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Posted by CMStPnP on Sunday, October 9, 2022 10:13 PM

[quote user="charlie hebdo"]

 

 
CMStPnP
1. College education is largely free in Germany. 2. Rail mileage might be greater on DB but it is highly duplicitous and parallel in a much more compact area.   I am sure that a lot of the professional railroad employees here in the Trains forum wish their rail systems were as compact because if they were..........no problem being home every night in a lot of cases. 3. Then of course there is the dramatic difference in cost of living that you also get with a much smaller country with a highly compact industrialization base.   Make sure you scroll down on the list in the link below.    

 

1.Irrelevant. (Says you, however education and education source plays a role in both the Executive Suites of Germany and the United States).

2.Size of corporation on metrics such as revenue, assets, # employees would be the relevant metrics. (Good luck with that.   It is actually what you can negotiate.)

3. The government does not set salaries. Germany is a free market economy. Unions are represented in corporate governance.  (DB is wholly owned by the German Government and it's CEO is on a fixed salary set by it's supervisory board)

Herbert Diess, the chief executive of Volkswage topped the list of Germany’s highest paid CEOs on the German DAX in 2019, earning €9.9m (£8.9m, $11.3m), according to an annual survey by the Technical University of Munich and the German Association for the Protection of Securities (DSW).Dieses was fired this year.  (If I had to guess, none of these are wholly owned by the German Government........so not sure why you would presume these compare to Amtrak?)

Perhaps American execs are overpaid, and why is the Amtrak guy getting performance-based bonuses?   (I would have to look at each exec on a case by case basis)

 

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Posted by charlie hebdo on Sunday, October 9, 2022 10:49 PM

Not worth engaging with tangential posts.

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Posted by Steven Otte on Monday, October 17, 2022 2:48 PM

Keep it civil.

--
Steven Otte, Model Railroader associate editor
sotte@kalmbach.com

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Posted by 243129 on Tuesday, October 18, 2022 8:41 AM

Steven Otte

Keep it civil.

 

????Confused

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