Read through the 10k and the proxy statement. (UPS.com - then investor relations - then financials)
The senior leadership, CEO, COO, CFO, Mr Walmart, and Mr Xerox all being patted on the back for a wonderful job by the compensation committee of the board of directors.
See page 35 of the proxy. Their annual evaluation is posted there.
On the same page is their target MIP - Their annual base pay, times their individual mip target equals target. It shows that all of them except the CFO received above the 110% mip factor! CEO received $657k more than target - or 32% above - similar to the other “named” executives except the CFO.
The board should be voted out, the mgmt committee should all be fired. Given the 10:1 vote, Iit cannot and will not ever happen. This company is uninvestable. The CFO got the same MIP as the rest of management - an indication they aren’t happy with him! He should be fired!
Page 22 of the 10k shows that domestic revenue has grown from $35.9B in 2014 to $43.6B in 2018 - while operating profit has declined from $4.2B in 2014 to $3.6B in 2018.
Leadership and the Board must think hiring Mr Walmart and Mr Xerox will make a difference- their employment offer letters showing the multi-million dollar payments to start are in the 10K. Mr Xerox spent +30 years with Xerox as a marketing genius- anyone remember one catchy marketing campaign from them? Anyone have Xerox stock because of their excellent returns? WTF?
Look back in five years and see if Walmart’s performance for 2012-2017 or 2018-2023 is better. Were they better off with him or without. Similarly- watch UPS 2018-2013 for the same - will the stock price have a transformational change?
P32 of the Proxy shows the company’s UPS compares itself to for senior mgmt’s stock options. If Walmart and Xerox are a pool of great talent- why aren’t they in the list? Why not hire someone from Target or Fedex?
Page 21 shows the stock price underperformance vs the S&P 500 and the transportation sector. UPS under performed both from 2013-2108. Investors know!
This company is in the ditch, and is digging deeper. It will flip into the lake! Upside down and all inhabitants will likely drown under the current leadership.
Read through the last three investor presentations - fall 2018, spring 2014, and 2011. Promises, promises, promises. No delivery.
The future business case studies on this once great company will be titled “Brown up to their eyeballs”.
Sad.
My boss reviewed my ownership incentive and made the pitch of how much stock I should own. I pointed out that I have invested my retirement savings elsewhere- funded by many years of mip, and am doing quite well.
I pointed out to him how little stock the new president of us domestic has vs the other mgmt committee members. He is 53 with just over 4K shares. If he is invested elsewhere vs the other MC members - he may be the smartest one of the bunch!
