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Report: Amtrak Bosses Bring in Big Bonuses Despite Lagging Ridership

The New York Times found that Amtrak had paid out $2.3 million in executive bonuses in 2021. Photo by Steve Barry.

Report: Amtrak Bosses Bring in Big Bonuses Despite Lagging Ridership

By Railfan & Railroad Staff

NEW YORK — Amtrak shelled out more than $2.3 million in executive bonuses in 2021 — the most it has ever offered — despite low ridership and revenue numbers. The New York Times acquired the information about Amtrak’s executive bonuses through a Freedom of Information Act request and published its findings on Friday

In 2016, the newspaper reports that Amtrak started giving incentive bonuses to top executives, but the total never topped $500,000. That changed in 2019, as Amtrak’s longtime financial woes began to turn, and the railroad doled out nearly $1.8 million in bonuses, up from $480,000 the year before. In 2020, when the pandemic sent ridership plummeting to all-time lows, no bonuses were paid. But in 2021, it paid the bonuses again, with nine executives each receiving more than $200,000 that fiscal year. CEO Stephen Gardner got the most in 2021, receiving $293,000. Since 2016, Gardner has received a total of $766,000 in bonuses. 

The news that Amtrak’s top people are receiving big bonuses comes as the railroad’s ridership continues to lag. In 2021, Amtrak reported about 12 million customer trips; far short of 2019’s 33 million trips. 

An Amtrak official defended the bonuses and said they were given out to retain and attract talented people. “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,” said Qiana Spain, Amtrak’s executive vice president and chief human resources officer. “The company has not made any incentive payments without first meeting its financial target.”

The newspaper interviewed a number of Amtrak partners, including Patricia Quinn, the executive director of the Northern New England Passenger Rail Authority that runs the Downeaster. Quinn called the bonuses “surprising.”


 

This article was posted on: August 5, 2022