Buyout in 2013

[SignificantOwner]

Not always ... I remember after 9/11 UPS buying a lot of shares at $47 /share. Which incidentally was a couple of bucks above the margin call.

Not sure about late 2008 ... I know a lot of UPS management that got margin calls exercised and they lost a lot of their stock and then had to sell more to pay their taxes.

I am referring to the current regime.

 

[SignificantOwner]

...2nd answer: When the market study was done a few years ago, a good friend in corporate told me about it. He told me that after the changes, supervisors and managers were still above market pay for similar jobs. He said that Division managers were about equal and that above that level they were still somewhat behind.

I was just thinking about our quest to be average and would like to know what the market studies say about driver pay.

 

[Bucket of Boltz]

We are the market, no one pays close to what UPS does for driving positions. The high wages and low cost benefits directly influence the turnover in the driver ranks.

 

[Catatonic]

I wonderwhoisbuying that stock to drive up prices ... maybe UPS?

UPS is going to repurchase $4 billion of its shares which is 5% of its current market cap.
Management expects $4.80 to $5.06 EPS for 2013 (including the buyback effect) and expects FCF to be above 100% of EPS.
UPS has an almost unbreakable tradition of increasing its dividend every year both in absolute and per-share terms.
UPS's average annual dividend payments increase is 10%.
UPS has a lot of years of growth ahead.
Using its ample cash flows and the cash that was reserved for the deal with TNT, UPS intents to buy back $4 billion of its stock which is about 5% of its current market cap. In addition to that, Kurt Kuehn the company's CFO also emphasized the importance of dividends, implying a raise in dividends paid too.

My take from all of this, is that UPS will increase its dividend by 10% to $2.50 when its management re-evaluates its dividend policy in a few weeks. That's a forward dividend yield of 3.125% at UPS's current stock price.
For the year, UPS paid $2.1 billion in dividends, an increase of 9.6% per share. In addition, we repurchased 21.8 million shares for approximately $1.6 billion. Looking ahead to 2013, UPS expects strong free cash flow to continue, again exceeding 100% of net income.



Read more: http://www.browncafe.com/forum/f18/...0-reduce-its-shares-5-a-348467/#ixzz2JwoPW3Fw

 

[BROWNHOG]

Older management people taking up space ? Maybe in your facility. I've worked more hours in the last 10 years with less resources. Less pay in terms of any kind of decent raise, less compensation if you compare a typical 10 hour day..everyday against the 12 or 13 hours days i was working up to 01/01/13. Less healthcare benefits...etc..etc..etc... Micromanaged to the point of being ineffective beyond my own specific area responsibilities. Watered down training. Redundant processes followed up by redundant repititous paperwork ,methods,forms and procedures. I speak to virtually no one..either teamster or management employeed 20 years or more who isn't feed up with the way the company has changed. Ups would save 2 billion or more with a limited direct buyout but why should they ? They have a captive group that are being worked beyond a reasonable requirment that can either retire or put up with the job as it is. Why motivate your workforce with a " timed " buyout, applied over 13 months that guarentees the employees who take it in groups would be energized to leave and push positve and progressive service ..you know..like fedex is doing....2 years full salary plus 25,000 for healthcare costs for how many people? I understnad there may be something in the works. I'll believe it when i see it. Previous buyouts up to 2010 were fair and reasonable, two words i cant seem to apply to policy concerning 20 + management personnel during the last 10 years.

 

[airops]

It won't happen. No one would be left.

 

[TxRoadDawg]

Funny I recall a dm once telling me 1/3 of all management was supposed to retire between 09 and 13 so anyone qualified that wanted to move up would have a slot open for them my how its funny the way things seem to turn out

 

[airops]

We just get rid of the positions. The people still leave.

 

[brownmonster]

I don't understand why mgmnt people believe they should be paid extra to leave. Wouldn't the same theory apply to drivers making twice what a new hire would make? You could give an old driver a 50 grand incentive to leave and make it up in the first 2 years of a new drivers 4 year progression.

 

[Catatonic]

I don't understand why mgmnt people believe they should be paid extra to leave. Wouldn't the same theory apply to drivers making twice what a new hire would make? You could give an old driver a 50 grand incentive to leave and make it up in the first 2 years of a new drivers 4 year progression.

The differnce is the Union.

UPS does pay non-Union non-Management separation packages.

If a driver wants to leave early, they should talk to the Union and get it in a contract since the current contract stipulates the company cannot establish a contract with Teamster employees.

 

[TxRoadDawg]

be cheaper to buy them out at 50 before they hang out another 10 years with shot out knees and back/neck trouble spending tehir last year or two before retirement just drawing workmans comp

 

[bsmart]

Funny I recall a dm once telling me 1/3 of all management was supposed to retire between 09 and 13 so anyone qualified that wanted to move up would have a slot open for them my how its funny the way things seem to turn out

I heard that too.... and a two year degree....then a four year....and then.....

 

[Bent Karton]

Will UPS be following FDX in offering a buyout in 2013. There are many older UPS management people that really are just taking up costly space and should be enticed to get going.

Casca, really? really?

I don't know what position U are in but in my group we just have to shake our heads at the younger folks that are "just taking up costly space" trying to figure things out.

I would welcome a buyout, I'm ready to go after 37 years...but I'm really concerned about the younger gen not having the same commitment and dedication as we did growing the business from a single brown package company into the mega logistics company we have today.

Once upon a time...you would never sell your stock, but now you don't know what the people that are trying to replace you will be able to bring to the table.

As soon as I'm not MIP eligible I'm selling; do the new people even know who JC was?

 

[UnconTROLLed]

be cheaper to buy them out at 50 before they hang out another 10 years with shot out knees and back/neck trouble spending tehir last year or two before retirement just [-]drawing[/-] fighting workmans comp

fixed it for you.