Last year, there was a new bonus plan called the 2006 Long-Term Incentive Performance Award Program (or LTIP) that was approved for select UPS managers (internally referred to as grade 20s and up). Has anyone realized, that the results are out, and have been filed with the SEC in the form 14A filed on 03/19/2007. For those that want to read along it is on page 24 of the document which you can find at the SEC web site, link below: UNITED PARCEL SERVICE, INC. Anything in "" is directly from the 14A. OK, here is the gist of the possible payout: "Target RSU grants range from 50 percent to 250 percent of annual salary. For executive officers, the range is from 225 percent to 250 percent of annual salary. Of the total target award, 90 percent is divided into three substantially equal tranches, one for each calendar year in the three-year award cycle from 2006 through 2008. The remaining 10 percent of the total target award is based upon achievement of an adjusted net income target for 2008." OK, so what were the measures? "The performance criteria approved by the Compensation Committee for 2006 were growth in consolidated revenue and consolidated operating return on invested capital. The goals for these criteria were based on our confidential business plans and were consistent with other publicly disclosed financial targets for 2006." Someone who is a UPS manager or supervisor should have now noticed that these are very different criteria than for the MIP (Managers Incentive Plan) award uses."Setting MIP goals and targets ""MIP is designed to incorporate performance criteria which support our annual operating plan and business strategy. For the 2006 MIP fiscal year, goals were established for the following six business elements:" "1. Growth in consolidated package volume 2. Growth in consolidated revenue 3. Growth in consolidated, as adjusted, net income 4. Non-operating cost as a percent of revenue 5. Package flow technology implementation 6. Successful integration of acquisitions" And how did they do, as measured by these different criteria? "At their meeting on February 7, 2007, the Compensation Committee determined that 85 percent of the target award for the 2006 tranche was earned." 85% not too bad . . . But that is much better then the MIP, which was cut 30% from the prior year. So what was payed out ?? "During 2006, a total of 623 employees received a target grant of approximately 1.18 million RSUs." Lets see; each RSU converts to one share of UPS Class A common stock; so on average each recipient will receive RSUs for 1,894 shares . . .Lets just use a $70.00 share price; so the AVERAGE payout is worth roughly $132,580.00. And that is only at 85%! if they were at 100%, the payout would have averaged $155,976.00! Setting the stage here . . . in a year when the average front line supervisor and manager had their compensation (MIP) cut, the average senior manager had their compensation "bumped up" by $132,580.00. Now, do you think this might be a reason why senior managers were not too excited about the shortfall in the MIP award in 2006?