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In need of $1 billion, Amtrak cuts management pay as it faces 'unprecedented' ridership loss
In need of $1 billion, Amtrak cuts management pay as it faces ‘unprecedented’ ridership loss
by Patricia Madej, Updated: March 21, 2020
In need of about $1 billion in supplemental funding to battle an “unprecedented” drop in ridership, Amtrak has now taken “aggressive" steps to cut the pay of top staff and other measures, the company confirmed Saturday.
Daily ridership is down 90% systemwide while future bookings are down 85% year-over-year, according to Amtrak.
{snip}
The company’s management employees now face temporary salary reductions — including a 100% reduction for its CEO — effective until at least Sept. 30, or the end of its fiscal year, according to an internal memo from Stephen Gardner, senior executive vice president and chief operating and commercial officer.
{snip}
The pay cuts take effect for the first pay period in April, reflected in the employees’ April 17th paychecks. Incoming CEO William Flynn will succeed Richard Anderson on April 15.
{snip}
Amtrak is “on pace to lose $1 billion in revenue this year due to the coronavirus,” Gardner wrote in the message.
{snip}
Amtrak is also suspending its 401(k) matching contribution for management employees through the end of the calendar year. The measures have been taken “to protect the company’s future” and “to avoid involuntary furloughs,” Gardner wrote.Amtrak is “on pace to lose $1 billion in revenue this year due to the coronavirus,” Gardner wrote in the message.
{snip}
by Patricia Madej, Updated: March 21, 2020
In need of about $1 billion in supplemental funding to battle an “unprecedented” drop in ridership, Amtrak has now taken “aggressive" steps to cut the pay of top staff and other measures, the company confirmed Saturday.
Daily ridership is down 90% systemwide while future bookings are down 85% year-over-year, according to Amtrak.
{snip}
The company’s management employees now face temporary salary reductions — including a 100% reduction for its CEO — effective until at least Sept. 30, or the end of its fiscal year, according to an internal memo from Stephen Gardner, senior executive vice president and chief operating and commercial officer.
{snip}
The pay cuts take effect for the first pay period in April, reflected in the employees’ April 17th paychecks. Incoming CEO William Flynn will succeed Richard Anderson on April 15.
{snip}
Amtrak is “on pace to lose $1 billion in revenue this year due to the coronavirus,” Gardner wrote in the message.
{snip}
Amtrak is also suspending its 401(k) matching contribution for management employees through the end of the calendar year. The measures have been taken “to protect the company’s future” and “to avoid involuntary furloughs,” Gardner wrote.Amtrak is “on pace to lose $1 billion in revenue this year due to the coronavirus,” Gardner wrote in the message.
{snip}
