Crawford, Graves Question Amtrak C-Suite Bonuses

Written by William C. Vantuono, Editor-in-Chief
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Railroads, Pipelines, and Hazardous Materials Subcommittee Ranking Member Rick Crawford (R-Ariz.) and Transportation and Infrastructure Committee Ranking Member Sam Graves (R-Mo.).

The House Transportation & Infrastructure Committee’s Republican leadership is questioning why some Amtrak executives have received bonuses they believe are “lavish.”

In a harshly worded letter to Amtrak Board Chairman Tony Coscia, Railroads, Pipelines and Hazardous Materials Subcommittee Senior Republican Member Rick Crawford (R-Ariz.) and Transportation and Infrastructure Committee Senior Republican Sam Graves (R-Mo.) are seeking justification for what they call “Amtrak’s practice of awarding six-figure bonuses to its top executives, offset by significant amounts of taxpayer funding, despite the company experiencing historic financial and ridership losses.”

“Despite the fact that Amtrak lost $789.1 million in fiscal year (FY) 2020 and $1.03 billion in FY 2021, and ridership fell by nearly 63% between FY 2019 and FY 2021, Amtrak’s top executives still received annual bonuses of more than $200,000 each in 2021,” Crawford and Graves—not mentioning that Amtrak’s record ridership plunged during the COVID-19 pandemic, as did that of public transportation and private airlines—said. “Payment of lavish executive bonuses when Amtrak services and revenues remain below pre-pandemic levels, and financial losses appear permanent, seems inappropriate, wasteful and disrespectful to Amtrak’s nonexecutive front-line employees and taxpayers. These concerns are only exacerbated by the $66 billion in guaranteed funding Amtrak received as a result of the Infrastructure Investment and Jobs Act (IIJA), which should be spent on improving the existing system rather than needless expansions or excessive executive rewards.”

The two Senior Republicans—who will almost certainly assume chairmanship of their respective committees in January 2023 if Republicans gain the House majority in the Nov. 8 midterm elections—also quoted a labor leader, Transportation Workers Union International President John Samuelsen, as saying, “[T]his isn’t just an affront to Amtrak workers. Every tax paying American should be livid.”

“Amtrak performance, by various measurements, continues to struggle post-pandemic,” Crawford and Graves said. “Between FY2019 and FY 2021, Amtrak’s total revenues declined by nearly 41%, and its net income losses increased by nearly 124%. Amtrak estimates that it will lose at least $1 billion annually over the next five years, which will be heavily covered by taxpayer-funded appropriations. Amtrak President and CEO [Stephen Gardner] recently testified before the Committee that Amtrak will never turn a profit. Furthermore, Amtrak’s customer satisfaction remains below pre-pandemic levels.”

The two cited reports that “intercity commuter trips have gotten more difficult, expensive and harder to justify on a time and cost-effectiveness basis,” pointing to “customer complaints related to long-distance services, with many customers facing cancellations or downgraded accommodations on trips booked months in advance.” They have asked Amtrak to brief them “about how performance bonuses are determined and provided.”

“We welcome the opportunity to brief Reps. Graves and Crawford,” Amtrak spokesman Marc Magliari told Railway Age. “Employee incentive plans are widely used by businesses in the United States and have been recommended to Amtrak by the Government Accountability Office (U.S. GAO) and Congress (Section 223 of the Passenger Rail Investment and Improvement Act of 2008). We are pleased to offer these incentives as part of our competitive compensation package, helping us attract and retain talent who have the amazing opportunity to rebuild and expand passenger rail. To earn incentives, Amtrak must achieve a high level of corporate performance in support of our company’s strategic plan—and employees must also meet their individual performance goals.”

Download the letter to Coscia:

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