richard anderson amtrak salary

Mr. Anderson, a former chief executive of Delta Air Lines, has been Amtraks chief executive since 2017, a memorably difficult year at Penn Station. But we are taking this action to help protect everyone. He is not an accountant. His earlier cash burn reference also implied that this was the case, a contention that has been repeatedly challenged by the Rail Passengers Association and elected officials along those routes. The highest earners in the top 75th percentile are paid over $114,293. Emotions run strong when the long-distance network is of future federal or state bridge loans or grants, and no timeline on the end (Trains obtained a copy, in part through a Freedom of Information Act request. Starting April 1, cutting management salaries from 22% to 7%, with the amount of reductions decreasing with the pay grade. of the crisis. [1] At Northwest, Anderson was initially charged with labor relations and government affairs. Miami station expense included a portion for snow removal. Security a critical infrastructure asset. Some trains must run now, more in are working on further cuts., DOWNLOAD AN AMTRAK INTERNAL MEMO ON TRAIN CANCELLATIONS. . 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. For example, Amtrak claims that the percentage of costs allocations has decreased from 80 percent to less than 50 percent. [12] In 2013, he was the recipient of the Tony Jannus Award for distinguished achievement in commercial air transportation. Amtrak: Past, Present, Future, available from Simmons-Boardman Books, 800-228-9670, www.transalert.com. Capitol Hill Contributing Editor Frank N. Wilner is author of Amtrak: Past, Present, Future, available from Simmons-Boardman Books, 800-228-9670, www.transalert.com. See here for a complete list of exchanges and delays. Keystone Service, running between Harrisburg and New York, as well as its Pennsylvanian trains between New York and Pittsburgh have been cancelled. degree in 1982 from the South Texas College of Law before working as a prosecutor for the district attorney office of Harris County, Texas. The resulting process has 60,000 allocation rules, with 1,600 responsibility centers grouped into nine similar cost families (for example, transportation operations), which are divided into 36 subfamilies (onboard service), and finally 44 subcategories (linen). Amtrak now projects losing $1 billion in revenue through Our Standards: The Thomson Reuters Trust Principles. Richard H. Anderson (born May 2, 1955) is a retired American lawyer and business executive. dont have a job anymore, and thats what we are working to avoid. We cant just count on Congress to close our gap., Part of that gap will be closed, Anderson said, by first cutting Flynn, who has been with Atlas Air Worldwide Holdings. Misplaced priorities also affect growth of Amtraks existing business. Who is this person? Following a Chicago luncheon on May 25, 2017, former Amtrak President and CEO Wick Moorman told Trains that long-distance trains break even on direct costs. But when Amtrak allocates overhead using a formula developed by the Volpe National Transportation Systems Center, he said, based on rational types of things like passenger-miles and train starts, [they] end up with about a $500 million loss. State-supported trains, he added, lose about $90 million on a fully allocated cost basis. Of Moving to the new station would clearly produce a leap in customer convenience and revenue, but would introduce higher crew costs for a backup move from the existing yard. They include: Reducing planned $2 billion in capital spending by $1 billion to focus only on state-of-good repair capital projects. off 10,000 or 15,000 people, that would be far more demoralizing. Daily ridership is down 90% systemwide while future bookings are down 85% year-over-year, according to Amtrak. . Imagine a real business that was frequently selling out but wouldnt add capacity because extra sales would cost it money. Projects or ideas for discretionary money Yet, because of this accounting treatment, Acela Express and Northeast Regionals chalk up less than $90,000 in such expenses. Hold on tight and get ready to write your Congressional representatives. 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. Not mentioned was Amtraks reported February co-signing of a $1 billion Railroad Rehabilitation and Improvement Financing (RRIF) loan application tied to proposed new Hudson River tunnels as part of the Gateway Program, and on behalf of real estate developer Related Companies. I will give an example. The performance-tracking system also plays into the continuing challenges previous Amtrak managements, boards, and Department of Transportation overseers have failed to address. put on hold owing to their criticality to keeping trains moving, and principal It aint gonna happen. A Former Airline CEO Thinks He Can Fix It. 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. Amtrak, which has lost vast sums of money for decades, is expected to report its first operating profit this year. Amtrak is on pace to lose $1 billion in revenue this year due to the coronavirus, Gardner wrote in the message. Richard Anderson stepped down as CEO on April 15, 2020 a year ago! Amtraks accounting systems probably perform millions of transactions every week. With so many costs allocated either Amtraks cost accounting is completely flawed and/or there is too much overhead, probably both. Over the past three or four years, it Previously, he was CEO of Delta Airlines, which after weathering the horrors of The new performance management process and Short-Term Incentive Plan reward employees based on their performance as it relates to our strategic plan, former Executive Vice President and Chief Human Capital Officer Barry Melnkovic told the in-house Amtrak Ink publication in 2015. Or is all their pro-Amtrak talk just that? Is the current BoD and its Chair Anthony Coscia the only people capable of sitting on that body? Yes, Amtrak families will feel financial pain, beginning 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). Mr. Flynn, who will be paid $475,000 a year, was not available for comment on Monday. Mr. Flynn is the chairman and former chief executive of Atlas Air Worldwide Holdings, which operates cargo airlines and other airfreight businesses. Paul Smith, who authored or published those white papers that you site? Amtrak Contact 202 906.3860 About Amtrak Amtrak offers a more comfortable and convenient travel experience with free Wi-Fi on most trains, plenty of leg room and no middle seat. I have read the documents several times. Setting up a real accounting system would require a lot of work that many would rather not do. network, the loss gets that much bigger.. also, would work without pay so long as other Amtrak employees endure some [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. Wed like to avoid it, but if we cant get the kind of funding out of Congress that we need, then we need to face that issue and will have a contingency plan to do that. designing a new tunnel a decade away. Flynn, who has been with Atlas Air Worldwide Holdings AAWW.O, for 13 years, has also held senior roles with CSX Transportation, Sea-Land Services, Inc, and GeoLogistics Corp. Amtrak said Monday it is on pace this year to achieve operational break-even for the first time in the companys 49-year history eve as it invests billions in new high-speed Acela trains and other capital assets. Now with the outbreak, Anderson said, full year revenues are projected to be down $1 billion and the company projects a $840 million loss even with expense reductions of $110-$150 million. Instead of investing in rail infrastructure we will be borrowing at the federal level to pay current and future retirees in the states and localities. Wilner is a past president of the Association of Transportation Law Professionals. darken skies in the Book of Exodus. 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. after fulfilling his three-year commitment to the company. Its a miracle that ANY trains run. 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. Much is dependent on enlightened labor leaders facing harsh reality with learned wisdom, rather than union hall polemics. On behalf of the entire Board, we thank you for everything you do for the company. Sign-up for email today! In theory, choosing an independent entity like Volpe to devise an accounting system would help management keep the company solvent. an Amtrak paycheck, will remain through year-end as an adviser to incoming CEO William . !, that it flies below the radar. Now we are moving into an economy of 100% bailout and 0% investment. doesnt always want to properly fund us, and to states and private companies Dont you think there will be bail-outs? specifically what the root cause of the problem was at the time, [and] the I actually respect Mayor Pete. Anderson was born in Galveston, Texas, to Hale Anderson, an office worker for the Atchison, Topeka and Santa Fe Railway, and Frances Anderson, a medical receptionist. Said Anderson during the town hall call-in, We have been the future, and to assure they do, the day-to-day struggle continues to keep Northeast Wonder what congress will think about all of this? 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. Kevin Smith examines Amtrak's plans and the challenges facing the United States' passenger operator. "Please stay safe and know that your health and well-being and that of our customers is always my priority.. Citing studies from 2005 or 2014 or 2017 without verifying whether Amtrak management took on board the recommendations contained in them is irresponsible. In April, Trains filed a Freedom of Information Act request asking for details of their total compensation, including bonuses. But I guess thats the government way. Because Amtrak has many activities and types of expenses, says Volpes latest methodology summary, from September 2017, Amtrak Performance Tracking uses 45 different allocation statistics. These include: Identifying these metrics provides a roadmap of how otherwise amalgamated costs, including over $1 billion in general and administrative expenses, are to be assigned to each train or operation. Transit Briefs: BART, DART, LACMTA, NYMTA, SEPTA, USDOT: An Additional $24MM for RIA Program Projects, Transit Briefs: NYMTA, MARTA, Amtrak, Keolis, RTD, An Inside Look at the People Who Make GO Trains Look Good, Young Professionals Conference: Fast Tracking Your Career, FRA Safety Advisory: Train Length a Critical Factor, CARB Passes New In-Use Locomotive Regulation, CN, UP, GMXT Launching Falcon Premium (Updated April 26 with UP STB Service Metrics), Class I Briefs: BNSF, CN, CPKC, CSX, CPKC/NS/UP. Im certain the long-distance network is going to be very different longer term. Amtrak CEO tells employees of ridership drops, pay cuts, other plans NEWSWIRE, Amtrak CEO tells employees of ridership drops, pay cuts, other plans Because after we get through this, the economy is going to be in recession, and that means our ridership will be down and we will be curtailing capacity to meet demand.. Trains asked to see the bonus criteria as part of its request, but Amtrak had not responded by press time. Get updates and special offers via email from Trains.com brands! Despite having no experience in airline operations, he was named senior vice president of technical operations and airport affairs. Anderson was named Aviation Week's Person of the Year for 2015. Amtrak is also suspending its 401(k) matching contribution for management employees through the end of the calendar year. Until the end of last year, Mr. Flynn ran Atlas Air, which is based in Purchase, N.Y., and claims to have the worlds largest fleet of large cargo planes in the world. At Amtrak, the most compensated executive makes $652,000, annually, and the lowest compensated makes $50,000. 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. 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. Flynn succeeds Richard Anderson, who joined Amtrak as CEO in July 2017. States had already begun to protest some decisions. Individual salaries will vary depending on the job, department, and location, as well as the employee's level of education, certifications, and additional skills. All of it! Richard Anderson. Andrew & Jeffrey Hopefully they wouldnt be that STUPID to pull a stunt like that to use this as an opportunity to cut/eliminate the LD routes being as next fiscal years budget has not been finalized thereby incurring the wrath of Congress members whose districts would be impacted. Anderson will remain a senior adviser through the end of the year. Amtraks accounting system and management priorities mitigate against that. In 2015, he received compensation of more than $17.5 million. A centrally located station to be shared with commuter service Tri-Rail at Miami International Airport has languished without Amtrak trains since it opened in 2015. The report would be rejected by independent, objective auditors from one of the big accounting firms. 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. Implementing a voluntary time off program for non-union employees, or reducing weekly hours to 32 hours per week and asking for voluntary retirements. Don't miss this look at the history of America's most influential builder of locomotives. The question remains how much of that overhead are we going to take responsibility for when we have no input. She had just spent two days in Washington, D.C., with mediation trying to figure out how we are going to get to the point where the states are assuming an appropriate amount of cost.. Salary. I dont think any Washington bureaucrat has guts to to tackle this accounting sham. It is, however, near Amtraks Hialeah maintenance facility. In business 101, one learns that no business can cut its way to profitability. The bottom line: managements no-growth priorities are a reality, but Amtrak Performance Tracking is the culprit facilitating them. 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. Classic Railroad Scenes: Railroads at Work. Like every major accounting system, mistakes are made, like assigning snow shoveling expenses to Miami. Get great snapshots of railroading history in Art Petersons newest book. Executive Vice President and General Counsel & Corporate Secretary. However, when Anderson stated that over two and a half years it takes about $2 billion to keep the long-distance network operating, he again used the largely allocated expense figures the company assigns to imply that these are avoidable costs that is, they would all disappear if the trains were discontinued. 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. 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. 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. How much more can be affordedor unafforded, for that matterbefore inflicting even more long-term economic harm on the nation is unknown, as so unprecedented and uncharted is this crisis of which Amtrak is but a miniscule part. Amtrak treats these as a capital expenditure rather than showing them as part of operating expenses. Now for the answer from the folks in DeeCee: Fix Amtraks problems with more money. [8] On October 11, 2016, Anderson announced his retirement from the Board of Directors effective on the same day. He earned a J.D. Is there really anyone who knows whats going on? Galen Riley:Yes, the rationale for the NEC Acela Trains, and perhaps the overall value of the NEC itself, as Amtraks most important focus, appears to be a pretty weak argument in light of these proposed cuts (and dramatic drop in ridership, admittedly in a major national crisis). and interest to be paid on existing loans. now, which elsewhere in America are darkening family futures as did locusts Gardner should be doing 10 years in the slammer for violating the public trust. President. And, with more boardings, the stations corporate-allocated share of system costs would rise. 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. With all respect to the distinguished author, much/ most of this article is old news. Until the past few weeks, there was a consensus that the federals would refrain from bailing out under-funded state and local pension funds. reservations for Acela are down 99%, And cost cutting through 2017 management buyouts eliminated field personnel and resulted in a loss of institutional knowledge perhaps the biggest such loss in the companys 47-year history that has permanently diminished U.S. passenger-rail expertise. Amtrak is a proud National Society of Black Engineers (NSBE) Conference sponsor! need to be aggressive in preserving our cash, he said. 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? We have a clear plan. But that will be only a worst-case scenario because we dont want to furlough employees.. We have a strong foundation to build upon because you built it. While Anderson said the long-distance network is intact, $59,612 - Starting salary (during Academy training and first year) $84,331 - After one year. But do either one have the spine to deal with by firing the Board, Flynn, and especially the Gestapo officer-faced Stephen Gardner? We 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? That would be Last week, the company reported an operating revenue of $3.3 billion for fiscal year 2019 a 3.6% increase over the last year. Get your questions about railroads and railroading answered. The family followed railroad work from Galveston to Dallas and Amarillo. solution truly takes a village, meaning all hands wisely focused on the present The American people seem to be content to just listen to the conversation, blindly accept the consequences of inaction, and then wonder why somebody didnt do something about the situation before it was too late. The real miracle is that the railroad has survived into its 50th year. Todays announcement of Bill Flynn as Amtraks next C.E.O. So, CURTIS, you can forget about your sensible position. News & Reviews News Wire Amtraks money mystery, Why we dont really know how trains perform financially. discussed, but ridership numbers are telling. The goal is to keep as many people employed as possible, Anderson said. 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. 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. If the documents misrepresented the facts, management would have to answer to the Amtrak IG as well as the DOT IG. It was developed at the request of Congress in 2005 to definitively categorize the companys expenses, according to how and where they are incurred. Libraries. Why Sign In? One way to reduce costs is to eliminate all customer costs: advertising, salesmen, support, service, Since Amtrak has no incentives to increase sales that is what will happen. [1], Anderson attended Texas Tech University and the University of Houston, graduating from the latter in 1977 with a degree in political science. The long-distance network as it stands today is intact, but we are going to pull 40% of available seat miles from the consists, Anderson said, adding, If we get to a point with Congress where we dont get $500 million (the company has asked for), we have contingency plans underway to further reduce the network to match capacity to demand.. Fare-paying passengers have vanishedalmost entirely on Northeast Corridor Acela trains; significantly on all others. I dont see this country return to normal in our lifetimes, let alone, CURTIS, as you advocate, doing some good. Protect the workers and press on with needed projects. Executive Vice President, Strategy, Planning & Accessibility. Mr. Anderson succeeded Charles Moorman, a former chief executive of the Norfolk Southern freight railroad. All redcap labor and baggage handling costs are allocated to long-distance trains, according to trip length, even though wheelchair service and baggage handling are provided to all trains, especially at New York and Chicago. 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. [3][4] Anderson was promoted to CEO of Northwest Airlines in June 2001 after the departure of John Dasburg. Airlines are turning toward the federal government seeking a steep bailout, while plummeting ridership and service reductions for public transportation are likely to be a lasting pain point for agencies across the country. out the door in currently anticipated losses through Sept. 30, with no assurances We should be very afraid of what is about to happen if Amtrak Joe spends all this money he has appropriated to improve Amtrak.

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