The truth behind the 1.6 MIP for this year

[toeknee2gx]

it was told to us at the mip presentation by the controller with the district manager present.

i hope youre masking your ip address somehow...

 

[Anonymous MIP participant]

I was told the same thing when I asked the purpose of the RSUs. Time to sell. I can deal with the reductions and RSU if the stock price was growing. Combine reductions, rsus and decreasing value and there is no reason left to hold it. The dividend and the additional award don't even keep up with inflation. No capitol gains to pay either.

 

[ukbrown1]

I was told the same thing when I asked the purpose of the RSUs. Time to sell. I can deal with the reductions and RSU if the stock price was growing. Combine reductions, rsus and decreasing value and there is no reason left to hold it. The dividend and the additional award don't even keep up with inflation. No capitol gains to pay either.

It is disgusting the way the whole mip has gone with rsu's being forced on you,mip cut and the best bit if you leave you lose the rsu.don't you just love it!

 

[Dfigtree]

<< I suppose the fool that designed PAS and this "No Left Turn" spin got a triple bonus.>>

If there were one person to put the PAS BLAME on, who would that be?

 

[westsideworma]

<< I suppose the fool that designed PAS and this "No Left Turn" spin got a triple bonus.>>

If there were one person to put the PAS BLAME on, who would that be?

I bet it was a committee, we work in groups at UPS when it comes to bad decisions

 

[browniehound]

<< I suppose the fool that designed PAS and this "No Left Turn" spin got a triple bonus.>>

If there were one person to put the PAS BLAME on, who would that be?

The blame for PAS would have to go to the drivers. I mean management can come up with a plan and implement that plan, but its up to the drivers to execute it. So all blame must go the the drivers for not being as efficient as what was drawn up in management's plan

 

[psstdrvr]

Its a shame the mip is not merit based. I strongly encourage the so called 'decision makers' at UPS to visit the ELI District, unannounced,to see how poorly operations and moral really is. Corporate is in for a rude awakeningif they really think anyone gives a crap about their 100 year anniversary. Wake up boys and look at what you're doing to this company!!!!

 

[Boston Mike]

No --- The Northeast Region

 

[Boston Mike]

H***** is now in Corporate. He runs the Business Development group replacing the VP who retired.

 

[tieguy]

The blame for PAS would have to go to the drivers. I mean management can come up with a plan and implement that plan, but its up to the drivers to execute it. So all blame must go the the drivers for not being as efficient as what was drawn up in management's plan

Perhaps we could lay the blame with:

corporate IS for not implementing better software for this monster.

Corporate PAS for not doing a better job of rolling this project out.

The center team for not doing a better job of implementing this radical change and for not getting enough driver input.

The preload team for not doing a better job of implementing.

The drivers for not buying into a project that did not get their involvement and was not sold well enough to them.

Realistically we have a concept that could be terrific if we clean up the bugs but overall we have done a poor job of implementing this thing across the board.

So now that we all agree that this thing has some bugs what do we do to fix it?

 

[island1fox]

BostonMike,
Who replaced H***** in the East Central Region and who replaced Steve ***** as Northeast Region Manager ?

 

[BrownBlackandBlue]

The not so slow erosion of management compensation continued with the disappointing MIP factor this year. However, the compensation committee made sure the senior managers grade 020 and above (region level staff managers, district managers, and a slew of corporate managers) recieved a huge increase in total compensation this year while the rest of us took a 30% cut to our MIP award. This cut came in a year of record revenue and record profit.

The compensation committee and the management committee and the board of directors approved a new incentive plan for these grade 20's and up. Like the fuzzy metrics of the "new and improved" MIP plan, it is based on fuzzy metrics that allows the comp committee to set the payout at whatever level they want it to be.

Under this plan, the target for a grade 20 manager is a bonus of 50% of their base salary if the company hits these fuzzy goals. The range starts at 50% for 20's and goes up to 250% of salary for the senior managers on the mgt committee. Of course this is all on top of the regular MIP they already recieve. On to 2006.....

I work in corp. accounting/finance and so I can tell you factually that this new plan will payout at 110% of goal for 2006. That means each grade 20 manager will recieve a bonus of 55% of their base annual pay. District managers will get 110% of their base and so on.

The question I think we as UPSers and shareholders and all outside shareholders should be demanding an answer to is

"How can there be such a misalignment of goals for one incentive plan to take a 30% reduction while another plan pays out 110% of goal?" My opinion is this is just a way to cut costs by cutting MIP while still continuing to reward senior managers and in fact increase their compensation. I think we have lost our partnership culture and greed is rampant at 55 Glenlake. Voting in a new plan in the dark of night as they did with this plan and basically saying anyone below a grade 20 is not valued and then redistributing the incentive dollars through this new plan that rewards only the few while cutting the total comp for the managers in the field working harder and longer for less would have been unheard of in the UPS of Jim Casey.

I try not to be into the class warfare thing and to not begrudge anyone what they have, but I do understand that, unlike Grade 20 folks, I am not a partner anymore. I am an employee. 2007=1.0

 

[rod]

Welcome to the jungle!

 

[Cezanne]

What is so terribly wrong about being considered "just" an employee.

 

[Unhappy IE guy]

For those not familiar with the new 2006 MIP award here it is in a nutshell:

Management get 50% of the award in cash/401k/stock and the other in RSU's. Now the thing with RSU's is that you only get 20% a year of your "award". If you leave you leave 80% of YOUR award behind. Now i am still not sure where the 80% that I earned goes if I leave but either way if you quit you lose money.

 

[mattwtrs]

I tihnk someone by thr name of Rocky ********* replaced herring in East Central..

 

[Air1]

Mike must go - any other CEO with shares performing like ours would have been booted long ago - Scotty should go with him - Mr Accouting - he hasnt' helped any either.

 

[tieguy]

I tihnk someone by thr name of Rocky Rom???? replaced herring in East Central..

Yep Rocky *********. Anyone know him?

 

[tieguy]

Question.

The denver website is reporting that new management won't get a traditional retimirement but will get the six percent match on their 401 K. Anyone know for sure?

 

[island1fox]

Tieguy,
Rocky ********* ---- I.E. backround -----N.E. region --IE manager----So CAL --District mgr --- corp special assign ---MBE.
Does anyone know who replaced Steve ***** as the Northeast Region Manager ?