Caltrain CEO is highest paid transit boss in Calif

[DET63]

(02-08) 16:43 PST Redwood City, Calif. (AP) -- 

Caltrain's chief executive is the highest-paid transit boss in California, while the rail line says it's struggling to stay financially afloat.

 

Caltrain CEO Mike Scanlon, who also oversees SamTrans and the San Mateo County Transportation Authority, makes more than $400,000 a year — 59 percent more than the median CEO salary among the state's 23 largest transit operators, according to a Bay Area News Group review of salaries recorded by the State Controller's Office.

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[Spokker]

Why don't they try to put it into context?

How much would he earn in the private sector? What should transit CEO salaries be based on? If they halved his salary, how much service could it support and for how long?

I read that Scanlon does more than just oversee Caltrain. Someone said that Caltrain pays him $86,000.

And to be honest, Caltrain's financial problems are the result of declining tax revenue due to the recession and screwed up transit politics rather than his incompetence.

 

[AlanB]

While not prefect and not covering all of your points, this story from Mercury News does put things a bit more in context. In particular this is very telling:

But even when combining the three agencies, Scanlon oversees about 800 employees and service that carries some 90,000 total bus and train riders -- both about in the middle of the pack statewide.

Now seeing as how there is no private comparison, can't really compare that. And I for one don't believe that cutting his salary would save much in the way of service. At best, maybe it keeps one train running for a few months most likely. Although I'm sure that there are people who do believe that it would be a huge help.

Instead it's more about the fact that he appears to being paid more than those running bigger agencies than the combined size of the agencies that he runs.

 

[Shawn Ryu]

Caltrain only runs one route, why is he being paid so much?

 

[Nexis4Jersey]

Caltrain only runs one route, why is he being paid so much?

Greed , and corruption......but no one running a Transit agency in North American should make more then 170k. If you look at the shape these agencies are in , its terrible and you have these idiots making 400k and running them on the wrong track...

 

[Shawn Ryu]

Ugh, disgusting. Even if he does run a agency with multiple bus routes and multiple rail routes and does a fantastic job, no way he deserves 400k per year.

 

[Spokker]

But the article is yellow journalism that distorts the facts to push a sensational story. He may or may not be getting paid too much, but the paper tied it to Caltrain for no reason and then threw in "struggling commuter rail agency" to boot. Caltrain pays Scanlon $85,647. The problem is with the other agencies.

The response: http://www.publicceo.com/index.php/local-governments/151-local-governments-publicceo-exclusive/2560-caltrain-and-san-mateo-county-transit-district-fight-qinaccuraciesq

By the way, Scanlon cashed out his vacation time and donated it to charity.

 

[sechs]

Let's call a spade a spade. It doesn't matter the situation of the agencies for which he works. Scanlon's compensation is out of line for his position.

 

[AlanB]

But the article is yellow journalism that distorts the facts to push a sensational story.

Agreed, the stories could have been better written, but of course they like sensationalism, as it sells.

He may or may not be getting paid too much, but the paper tied it to Caltrain for no reason and then threw in "struggling commuter rail agency" to boot. Caltrain pays Scanlon $85,647. The problem is with the other agencies.

On the other hand, one must consider that one of the other two agencies that is over paying Mr. Scanlon is San Mateo County's SamTrans. Of Caltrain's funding, 34% comes from the following three agencies; SamTrans, the Santa Clara's VTA (San Jose), and San Francisco's MTA. So one of the agencies that Mr. Scanlon runs and is overpaid by, is also one of the agencies that is at least partially responsible for Caltrain's financial woes.

One has to wonder if that isn't a conflict of interest?

By the way, Scanlon cashed out his vacation time and donated it to charity.

That's very nice of him, but frankly it smacks of him trying to close the barn door after the horse is already out. I'm not sure if that's actually true, but still it does raise questions.

 

[Spokker]

Let's call a spade a spade. It doesn't matter the situation of the agencies for which he works. Scanlon's compensation is out of line for his position.

Based on what?

He could probably make more in the private sector. Most of Caltrain's problems are out of his hands. I love the comments from people that say, "Pay me 100k and I could have Caltrain in the black in no time!" Good luck navigating the political realities of transportation funding. Their only options will be to cut trains, raise fares or some combination of the two.

In fact, Caltrain could be doing poorly in spite of Scanlon's best efforts. "It's the economy, stupid."

 

[me_little_me]

Let's call a spade a spade. It doesn't matter the situation of the agencies for which he works. Scanlon's compensation is out of line for his position.

Based on what?

He could probably make more in the private sector. Most of Caltrain's problems are out of his hands. I love the comments from people that say, "Pay me 100k and I could have Caltrain in the black in no time!" Good luck navigating the political realities of transportation funding. Their only options will be to cut trains, raise fares or some combination of the two.

In fact, Caltrain could be doing poorly in spite of Scanlon's best efforts. "It's the economy, stupid."

When CEOs make tons of money but their defenders blame the bad economy for the bad performance of their organization, it makes me laugh. When the economy improves, they don't refuse a pay raise because "I didn't do a better job. We just did better because the economy has improved".

Almost as sensible as the layoffs of employees but no pay cuts for the executives since their responsibility is now decreased. Ever hear of all the administrators in a school system getting 10% pay cuts when the number of teachers is cut by 10% to save money?

 

[Spokker]

Scanlon has had his wage frozen since 2008 due to the poor economy.

The management of a corporation is far different from that of a public agency designed to provide commuter rail service. Caltrain is a money loser even in good times. The idea is that there is a public benefit which justifies the use of tax dollars to fund a portion of the service. When those tax dollars dry up, and nobody is willing to increase taxes, you either cut trains or raise fares.

If they ever make capital improvements to the line, such as electrification and grade separation, the service may become attractive enough to cover its own operating costs and be run more like a real business, but again, that would require more tax dollars.

 

[sechs]

It appears that Scanlon was paid more than the head of any other California state transit agency with at least 100 employees. LA Metro, by some measures is about fifteen times bigger than SamTrans and Caltrain combined, but Scanlon still makes more than its head.

I'd argue that Scanlon's pay was out of line before 2008. It's just that nobody noticed or particularly cared because there was enough money to pay it.

 

[DET63]

I'm not sure I'd call the article "yellow journalism." It is from the Website of the San Francisco Chronicle, a newspaper that is owned by a corporation that was started by William Randolph Hearst . . .

Well, come to think of it, maybe the label isn't so far wrong.

 

[JJJ]

The problem is that many people do not realize that the following two scenarios are not compatible:

"Run x agency like a business!"

and

"Let the public micromanage wages!"

The first implies that salaries will compete with private enterprise salaries, after all, it's the same pool of people. If you want the best, you have to pay the best.

The second, of course, implies the exact opposite.