Eliminating MIP below Level 20

Discussion in 'UPS Partners' started by Mr Jingles, Jul 3, 2010.

  1. Mr Jingles

    Mr Jingles Rat out of a cage

    Heard a lot of strong rumors around the Corporate office that MIP was being eliminated for levels of management below 20.
    That means only the District Manager and maybe the Operations Manager in District Operations will still get MIP.
    Anyone else heard this?
    Have not heard if monthly salary will be adjusted.
  2. whiskeyagogo

    whiskeyagogo Member

    I have not heard it but the monthly salary would have to be adjusted in some manner. Federal law governing paid overtime requires some kind of compensation; this is why specialists (who do not get MIP) do get paid overtime.

    From a financial perspective, it seems like a toss-up to me. MIP is a nice feeling at the end of the year that hard work paid off. Paid overtime would be nice considering how many hours I'm putting in.
  3. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    That does not make sense to me. If UPS was going to do this, it would be more sensible to to make the cut-off at Level 18 in the Districts and Level 20 in Corporate.
    It is my observation that these are comparable levels in terms of responsibilities.
    While not in Corporate office physically (10 miles North), I usually hear all the rumors and this one does not ring true.
    As always, we'll see.
  4. SignificantOwner

    SignificantOwner A Package Center Manager

    I made good money over my first 10 years of MIP - back when the award was issued in real shares that you could turn into real dollars. The interest free loan to cover the Social Security tax was a nice part of the plan that helped build my share base and create wealth.

    The last 10 years have felt far from rewarding. Over these years I've been handed pieces of paper showing the number of shares that I MIGHT get someday. When I've actually been issued shares many (maybe most) were worth less than they were when the RSU's were granted.

    The management committee probably has some good laughs over this maneuver. I don't know if any changes are coming but don't worry, the grade 20's and above will take care of themselves.
  5. Anonymous 10

    Anonymous 10 Guest

    This sounds like another good business decision from the guys at Wallstreet.
  6. FracusBrown

    FracusBrown Ponies and Planes

    I guess they found a way to pay for all the three point seat belts.

    UPSSOCKS Well-Known Member


    What's your take on this, you came up with the MIP idea didn't you??? How much willl we make now?? Will it be more than a part time jockey??

    UPSSOCKS Well-Known Member

    Oh and by the way no truth to this rumor..
  9. Anonymous 10

    Anonymous 10 Guest

  10. FracusBrown

    FracusBrown Ponies and Planes

    About 28k for a manager. 13k for a sup. unless you consider that you really only get half the year of the award. 1st year of elimination would reduce w2 by approx 14k and 6.5k respectively since you continue to vest past years MIP.

    It's no secret that the board is progressively reducing management compensation. Industry standard is the buzzword and the target.

    No sense directing your anger at me. The facts are the facts.

    Take a look at what you have lost in compensation over the last 7-10 years and figure out where your compensation would be if they hadn't made the changes. One step at a time management compensation is systematically being whittled away.

    UPSSOCKS Well-Known Member

    Spot on again.... Are you on the board of directors? You know everything... I can't believe how intelligent you are.
  12. Popeye

    Popeye Member

    MIP is worth less than cash, so if they're going to replace MIP with an increase in cash compensation it would be a plus. The days when UPS could reasonably expect management people to invest their life savings in company stock are long gone. Only a fool would do it now. By going public and introducing Market Risk, the game was changed entirely. Why do you think they started withholding half of the MIP a few years ago? MIP went from something everyone wanted to something nobody wanted. The only way they could get people to hold UPS stock was to force it on them. And look where we are now. By the time you're vested in each year's withheld MIP it's worth far less that it was when the award was made. It's just as well, since any notion of UPS management people working together toward common goals is also a distant memory. Now it's cutthroat, back-stabbing or whatever else it takes to "succeed" at someone else's expense.
  13. FracusBrown

    FracusBrown Ponies and Planes

    I'm glad you have something of value to add. Does the truth anger you?
  14. DiadDude

    DiadDude Member

    All those who don't want their MIP should PM me so I can give you information on how to sign your MIP over to me. Heck I'll even pay those pesky taxes for you.
  15. soberups

    soberups Pees in the brown Koolaid

    Any hourly employee who questions the need for a collective bargaining agreement needs to read the previous two sentences and take them to heart.

    Our contract is far from perfect and our union is far from perfect, but consider the alternative.

    If you truly want to know how the company would treat its employees if they didnt have a union contract, all you need to do is look at the way it treats its own management people.
  16. Popeye

    Popeye Member

    Would you rather have MIP or cash? There's no way they'll do away with MIP and not increase cash compensation.

    UPSSOCKS Well-Known Member

    Nothing angers me, I live a good life. I enjoy logging on here to listen to clueless people *
    Lasted edited by : Jul 5, 2010
  18. DiadDude

    DiadDude Member

    Have you not worked here in the past 10 years? What have you seen that would make you believe there's a limit to how bad the company will screw you?
  19. MD Dan

    MD Dan Member

  20. JustTired

    JustTired free at last.......

    Some might argue that the union contract is why they treat their own management the way they do.

    I'm not agreeing nor disagreeing with that....just saying.

    The problem is that we are living in a time where the stockholder needs are put above all else. They are seemingly of more value than the employee or the customer. And that, my friends, is a very dangerous position to take.

    Stock price has very little to do with the company's worth. It has more to do with the worth (or worthlessness) of its' upper management whose compensation is ,in part, directly affected by wall streets perceived valuation.