In our monthly “The Trains Interview,” Boardman discusses rail safety, operations, dining car service and offers a critical opinion of the passenger railroad under the leadership of Amtrak’s two most recent presidents.
“Cost has become a driver in a way that it has begun to damage the system. We had an overall revenue goal. But individual management goals that influence monetary bonuses were based on cost targets, not revenue. The incentive program needs to be revamped so cutting expenses is not the sole focus,” Boardman tells Trains’ Passenger Columnist Bob Johnston.
Trains forwarded Boardman’s statements along with these questions for Amtrak to respond to for News Wire:
“Can you explain any changes in Amtrak’s management bonus system that took place since Mr. Boardman left the company in 2016 and the reasons for these changes? Is revenue growth factored into the long term or short-term incentive plans? What other factors help determine the bonuses Amtrak managers receive?”
Through a representative, Amtrak replied:
“Since 2013 Amtrak has used incentive plans to help improve company performance. Employee incentive plans have been recommended by the Government Accounting Office and encouraged by Congress in PRIIA. Congress expects Amtrak to reduce costs, increase employee productivity and maximize the use of our resources and property.
“The FY 2016 short-term incentive plan was evenly based on achieving an adjusted operating loss target – achieved by a combination of revenue growth and expense control – and a customer service target. Amtrak’s incentive plan today has three metrics: operating loss, customer service and ridership.
“Like any business, we want to strike a balance between reducing the costs of operations and growing the ridership and revenue associated with the service we provide. This isn’t an either-or proposition — our incentive plan aims to control costs and increase ridership and revenue. The better we are at providing service efficiently, the more resources we can invest into our long-standing capital needs and the more our customers will choose Amtrak as the way to travel.”
The remainder of Boardman’s interview is contained in the News section of the March issue, available in February to subscribers and newsstand readers.
Trains has offered Amtrak the opportunity to respond to Boardman’s full interview in a future printed issue of the magazine.
I find it amusing that Trains whose columnists never tired of bashing Broadman is now giving him all this good press.
Darn keyboard……
DBAG has found itself short of personnel to replace the continued retirement stream of veteran employees. Though the railway is currently hiring, but not unlike Germany’s police force, who is dangerously short of new professional trained men and women, you can’t expect to blitz train newly hired personnel and then rush them to the front line without any prior on the job training. It just won’t work, nor has it ever!
Employee morale at DBAG remains at an all time high and I imigine there are a good number of new hires who won’t remain with the railway very long as soon as they see first hand the gross mismanagement that continues to plague the company and has for several years now.
Since new hires earn much less than their old head counterparts for performing the same duty this has also led to quite a few of them resigning shortly after having being hired. On the other hand, some will stick it out, simply because the only other alternitive they have might be building burgers at McDonalds again…
Ditto Deutsche Bahn AG. This 100% government owned railway faces major problems as a result of years of cost cutting measures and neglect to invest in much of the infrastrucutre.
With the continued retirement of veteral employees, DBAG has come up short personnel in most every department.
Ha! Mr. Boardman? What did you do to place Amtrak in a stable environment? Funny you had a chance to change the status quo. Now you complain after the fact. Just go eat your cake…
Who thought we’d miss Joe Boardman? I couldn’t wait for that guy to leave. Now I want him back.
Take cover!! More corporate BS being flung your way.