The truth behind the 1.6 MIP for this year

[Tarnsman]

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 ?

Steve was a class act who will be virtually impossible to match...he represents the transition of "Old School" owner owned & managed UPS to the mess we have now.....The crest has been broken...

 

[BrownBlackandBlue]

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

I didn't say "just" nor did I say there was anything wrong with it. It does change things though. I don't feel responsible for things in the center outside my sphere of responsibility and I work 3-4 less hours per day as an employee vs. a partner. Not such a bad trade off after all.

 

[Dfigtree]

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

The reason you got a 1.6 MIP (not bad in my experience) this year is that UPS doesn't care if you stay or leave. If you leave they hire a cheaper employee If you stay, they will work you to death. It's a public company beholding first and foremost to the stock holder. This old Casey concept of partnership NO LONGER EXISTS. GET IT THROUGH YOUR HEADS . YOU ARE A COMMODITY IN SEA OF AVAILABLE REPLACEMENTS. That is the reality. 1.6, 1.0. 0.5, what are you going to do. This ain't your father's UPS!

 

[cheryl]

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

Please don't post any full names on this forum, you wouldn't like it if it was your name being posted on the internet without your knowledge...

 

[tieguy]

Please don't post any full names on this forum, you wouldn't like it if it was your name being posted on the internet without your knowledge...

I agree that should be the rules for most names. In this case though we were discussing region managers who are considered senior vice presidents of the company. We wouldn't block out the name of Mike Eskew or members of the board. Region managers are right there in rank and stature.

 

[cheryl]

After getting that call from the lawyer about Mike's name being registered here I'd rather not see anyone's full name posted.

I do not want to hear from her again...

 

[island1fox]

Cheryl,
Did not intententially want to cause any controversy. I was going to edit my two postings but one of the admins beat me to it. I will not post any last names in the future ---regardless of what position they hold.

 

[rubyspringer]

We are all witnessing desperation. Upper management (20 and up) are under instructions to cut human costs in any way possible. This means demotion, forced or suggested retirement you name it, every tatic is in play. The partnership and any lingering paternalistic cultural elements are gone forever. The trust is a memory. They do not care what you think or know or have done. Either you follow mindlessly or you are a malcontent. Intergity.. ha ha. hypocrits one and all. Survival is the name of the game now. The Brown machine is collapsing under their own weight and numerous leagacy based burdens.

 

[7777777]

We are all witnessing desperation. Upper management (20 and up) are under instructions to cut human costs in any way possible. This means demotion, forced or suggested retirement you name it, every tatic is in play. The partnership and any lingering paternalistic cultural elements are gone forever. The trust is a memory. They do not care what you think or know or have done. Either you follow mindlessly or you are a malcontent. Intergity.. ha ha. hypocrits one and all. Survival is the name of the game now. The Brown machine is collapsing under their own weight and numerous leagacy based burdens.

Not desperation, necessity. There is a difference.

Plenty of people were recently given a perfectly reasonable offer to walk away.

Next step is demotions, transfer to operations, retirement, or termination/layoff.

Somebody should have thought of that possibility instead of viewing themselves as a semi-permanent “adoptee.”

If you think there has been a “partnership” for the last (10 anyway, but I’m thinking more like 14) years, you haven’t been paying attention.

You don’t need to “think” or “know” anything or “follow mindlessly” – you simply have to be NEEDED. If not, you’re out. Well, eventually – and sooner rather than later, IMO.

“Brown machine” isn’t collapsing under their own weight at all – they’re collapsing due to poor decisions made by (pre-Eskew) executive management and legacy-based burdens – absolutely.

Shedding those “legacy based” burdens is an issue that is attracting more interest by the hour. It’s a decade too late, but I can assure you that it is an option that is being considered TODAY.

But take that for what it’s worth on a Teamster crybaby board – nothing.

 

[govols019]

Why the name calling?

 

[trickpony1]

But take that for what it’s worth on a Teamster crybaby board – nothing.

.......that's interesting.

It seems I remember a number of past as well as present management people expressing disdain on this "crybaby board".

 

[Johnny Anonymous]

Folks.... the one thing I haven't heard is that the 2006 MIP factor had everything to do with the 2008 contract. I try to be an optimist, but I expect the 2007 MIP factor to be equally disappointing. That way the UPS management labor negotiators can leverage the fact that they are not awarding big bonuses in order to limit increases to union members.

The question is where does all of that excess money go? Also, with the new RSU system and the increased turnover of managers and supervisors, what is UPS doing with the monies from the unvested RSU's for those termed management employees?

 

[constructively dissatisfi]

The question is where does all of that excess money go? Also, with the new RSU system and the increased turnover of managers and supervisors, what is UPS doing with the monies from the unvested RSU's for those termed management employees?

The excess money goes to the grade 20+ people. The RSU money for someone who quits is stolen by the company.

 

[browniehound]

I understand the disapointment in management's bonus. But that's what it is a bonus. How much did your salary increase? People keep talking about the teamster's huge wage increases. OK, in August of 2007 we'll get a $1.00 hourly increase. This amounts to a 3.7 increase over the 27.14 per hour we earn now. Not bad, but considering inflation is 3% historically we're now getting a whopping .7% in real dollars increase in pay. These last 2 years of the contract are only ones where we actually had a real dollar increase in compensation.

So, while I'll side with your disgruntlement on your MIP bonus compared with what upper management gets, don't blame it on the hourly workforce. We exist here at the bottom of the food chain.

 

[steffieup]

What amazes me is the discussion of MIP which is for management. If you don't like it go talk to your peers and not each other on a message board. Not one of us on this board can do a thing about it. UPS has an open door policy...pull up your tie and walk through it. If not shut up!

 

[constructively dissatisfi]

What amazes me is the discussion of MIP which is for management. If you don't like it go talk to your peers and not each other on a message board. Not one of us on this board can do a thing about it. UPS has an open door policy...pull up your tie and walk through it. If not shut up!

Only if you promise to shut up about the Teams-duh jive. Some of us aren't particularly interested in your belly-aching either.

 

[Channahon]

I'm sure most of you know the 1.6 MIP is for supervisors and managers get 3.2. The MIP is an award, not a bonus, you have to be recommended by your Division/Staff Manager.

As far as the new payout, is it that bad of a deal? 50% of your award is deferred over 5 years, so if you were awarded $20,000 only $10,000 is added to your earnings for the year. In some cases, this may bring someone into a lower tax bracket.

The RSU's are no different that a stock option for divison/staff managers, who leave UPS prior to their stock vesting, they lose their options.

 

[BrownBlackandBlue]

I'm sure most of you know the 1.6 MIP is for supervisors and managers get 3.2. The MIP is an award, not a bonus, you have to be recommended by your Division/Staff Manager.

As far as the new payout, is it that bad of a deal? 50% of your award is deferred over 5 years, so if you were awarded $20,000 only $10,000 is added to your earnings for the year. In some cases, this may bring someone into a lower tax bracket.

The RSU's are no different that a stock option for divison/staff managers, who leave UPS prior to their stock vesting, they lose their options.

The MIP was one of the reasons I went into management. I consider the new program a paycut. The RSU's are not yours until they are safely in your own account. The cutting of the MIP to 1.6, in the face of record profits, is also a paycut. I hope the powers that be have a good reason for doing it. Even if they do, it doesn't change the fact that it is a paycut, so don't insult my intelligence by dressing it up as something else.

 

[Channahon]

I was not insulting your intelligence, just making a few points regarding MIP. I was an MIP receipient for 26 years and Stock Options for 13 of those years. If you think I enjoyed waiting 6 years to exercise my first stock option, that's what kept me at UPS, till I retired, so I wouldn't lose anything.
It is what it is.

 

[blah blah blah]

If you think I enjoyed waiting 6 years to exercise my first stock option, that's what kept me at UPS, till I retired, so I wouldn't lose anything.
It is what it is.

Channahon, two questions:

1) How many years did you have to wait to get your 2 units? We wait 5.

2) How many of your options (which were on top of your 2 units) were worth the same or less when exercised? Did you want 6 years for no gain? That's what's happening to us.

You knew how your MIP was calculated - 15% of gross earnings. The current MIP calculation is "confidential." We're currently granted RSUs based on someone's whim. They don't appreciate, but we can't sell them and buy a better investment. The RSUs aren't over and above the units granted, they're a part of them...totally different than your situation. One other note - you can't hypo a RSU. Yep - I'm irked about it.