mip

[squeekywheel]

Pretzel Man,

Go check the SEC site for UPS's 8-K posting dated 3/7/07. The filing provides details on the LTIP. At the very end is a performance matrix giving ranges for revenue growth and operating ROIC. As I read it, it would appear the LTIP pays at least 50% unless the 2 measures both hit rock bottom. Unfortunately, the metric values are not included.

As to raises, check the SEC site for UPS's DEF 14A filing on 3/19/07 bottom of page 21: the Named Executive Officers (NEO's) base salary increases for 2006 averaged 4.5% - the other management committee members averaged 4.1%. Not huge increases but higher than the 3% in my area and the 3.5% average you mention.

In this same filing, 3rd paragraph from the bottom of page 24 states the Compensation Committee determined 85% of the target LTIP for 2006 was earned - not bad on top of the 1.6 MIP.

 

[pretzel_man]

Pretzel Man,

Go check the SEC site for UPS's 8-K posting dated 3/7/07. The filing provides details on the LTIP. At the very end is a performance matrix giving ranges for revenue growth and operating ROIC. As I read it, it would appear the LTIP pays at least 50% unless the 2 measures both hit rock bottom. Unfortunately, the metric values are not included.

As to raises, check the SEC site for UPS's DEF 14A filing on 3/19/07 bottom of page 21: the Named Executive Officers (NEO's) base salary increases for 2006 averaged 4.5% - the other management committee members averaged 4.1%. Not huge increases but higher than the 3% in my area and the 3.5% average you mention.

In this same filing, 3rd paragraph from the bottom of page 24 states the Compensation Committee determined 85% of the target LTIP for 2006 was earned - not bad on top of the 1.6 MIP.

Hello Squeeky,

I was told that 2007 was tracking at zero. I don't know for sure since its not calculated yet. I bet I can find the metric somewhere. I'll look.

I think the 2006 LTIP award was an anomaly. It seems wrong for an 85% LTIP... LTIP was supposed to be tied to indices that drive the stock price.

As far as raises, I was responding to this statement:

"Grade 20( District managers and above) had huge increases in thier salaries this year, in many cases they doubled."

The rule for raises was the same for the whole company. If your salary was above the mid point of your salary range, you contributed 2.75% to a "pool". If it was below the mid point, you contributed 4% to a "pool"

The average pool was 3.5%. If one area had higher paid people, relatively speaking, they got a lower average raise.

The pool is then given out based on a number of factors.

In the area I work, there are many long term UPSers who are higher in their range. The average where I am is also about 3%.

P-Man

 

[SimpleUPSer]

Regarding this statement:

"Grade 20( District managers and above) had huge increases in thier salaries this year, in many cases they doubled."

It is also to important to note that the annual raise is only a portion of total salary. The increase(s) referenced may have been above and beyond that.

The only way to know for sure is if you were a 20+.

Another note on MIP, when they changed the award (prior to the RSU change) to be taxed and then distributed this also affected the amount of our MIP stock award.

Given the change(s), new management people will never reach the full additional incentive unless they purchase.

Stock ownership has long been a part of the UPS culture and one that in my opinion has driven so many of its successes. It seems as if this culture is changing, and it may not be for the best regarding employees.

While we still hear that stock ownership is important, then company's actions seem contrary to that statement.

I also understand that a company needs to evolve with the times, and "transitional impact" is unaviodable, but that should not detract from the organization's responsibility to its people.

It appears as if many people feel that the transition has impacted them, and mostly negative at that.

Has anyone had the opportunity to read the comments from the ERI? Never has there been so many unhappy people at UPS, and a poor MIP will only contribute to that.

My two cents.

 

[Dfigtree]

when mip is announced on tuesday, keep in mind that the factor would be over 3 using the old formula - 15% 0f pre tax profits- ...oh yeah, and you would have gotten ALL of it

Exactly how do you figure that? 15 per cent of the operating income divided by "what" exactly? The number of participants? Their salaries? Their MIP factor? How exactly are you coming up with a MIP of 3+? You may be right but we are looking for the facts, mam. Just the facts. Show us the calculation.

And to Scarlet Knight, nice job.

 

[Gold Rush]

Can you say Pyramid scheme....

 

[upsandDOWNS]

mip 1.6

 

[nhguy]

Official MIP was just announced in UPSER.COM it is 1.8

 

[NO ONE]

Mip 1.8......what A Joke....can't Wait For The 12+ Hour Day At Xmas, Thanks For The Effort(yea Right)
O WAIT I ONLY GET 1/2 AND PRORATE THE REST FOR 5 YEARS...

 

[ihadit]

Mip 1.8......what A Joke....can't Wait For The 12+ Hour Day At Xmas, Thanks For The Effort(yea Right)
O WAIT I ONLY GET 1/2 AND PRORATE THE REST FOR 5 YEARS...

QUIT!!!!!

 

[Bloodybrown]

Who are you to tell him to quit??........Your not in management and as you have seen your salary grow every year, while his has decreased over the last few years. If he has been with the company for 15 or more years its hard to leave, you have to much invested. The 1.8 is better than I expected but its a far cry from what it should be. 2.5-3.0......my opinion.

 

[Mahwah Mipster]

Lets hear it for partnership!!!!

 

[upsisermd]

Who are you to tell him to quit??........Your not in management and as you have seen your salary grow every year, while his has decreased over the last few years. If he has been with the company for 15 or more years its hard to leave, you have to much invested. The 1.8 is better than I expected but its a far cry from what it should be. 2.5-3.0......my opinion.

Agree. I've been with the company for 18 years, it would be hard to start over

 

[hangin455]

I love the earnings call where everything is spun so positive and pretty for the analysts. Then they turn around and tell those that work here that it wasn't such a great year.
Oh NOW I get it. We made money by not giving it the people who work here.
What's really great about this is getting screwed two ways. No money in the pocket and no increase in the stock price.

 

[bigbrowntruck]

1.8 an insult! What has happened to our company! The goals are so abstract, this stuff in planned years in advance.

 

[UPScomputerGUY]

What's interesting is that in my area the scare tactics, brain washing and the entire psychological scam worked ..... we were all predicting 0.8 to a 1.2 MIP base on the factors being worse that last year... then they pull out a 1.8 and we don't feel so bad ... heck .2 more than last year. I believe the MIP factor has been planned and accounted for years to come ... the MIP factors are just a grey misguided attempt to pull the wool over our eyes. They can make MIP ANYTHING they want ... and don't have to produce any real figures to justify it ... not like the good ole days (3+ years ago) ... when the company prospered everyone in management prospered. I'm sure many 20+ unit managers have back sprains today from doing cart wheels and flips in celebration of there 250% salary bonus based on earnings instead of goofy MIP factors. Oh wait ... they get MIP too!

 

[swampy1]

Didn't this all start unraveling after 1997?

Our "leaders" cut the deals and we have been paying for them.

WHoa..... you ain't seen nothin' yet. Wait till UPS has to pay for the 6.1B. Where do you think that will come from?? Maybe the 2% raise you got this year. Maybe your healthcare. Maybe your ability to retire at 55. Next year will be the year all grades 14's and 16's will take it in the south end of a north facing mule. They will have to pay for it somehow.