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<blockquote data-quote="Black_6_Leader" data-source="post: 180007" data-attributes="member: 9413"><p>LOL Not exactly, <u>PEACOCK71</u>, how much have things changed. Gray has become the new color of UPS management under the current leadership . . . Look at MIP for example. </p><p> </p><p>This is the current description of the MIP plan, in a letter to current UPS Management:</p><p style="margin-left: 20px"><span style="font-family: 'Arial'"><span style="font-size: 10px"><em><strong>How is the bonus award determined?</strong></em></span></span></p> <p style="margin-left: 20px"><span style="font-family: 'Arial'"><span style="font-size: 10px"><em><strong></strong>The redesigned Managers Incentive Plan (MIP) is a bonus plan based on target awards for eligible plan participants. The targets are expressed as multiples of monthly salary similar to prior MIP factors. The aggregate award will be based on the actual award multiples as determined by the salary committee multiplied by the aggregate monthly salaries by award level (e.g. one-unit and two-unit). <u>In the past, MIP was a “profit sharing plan” and the aggregate award was determined based on a percentage of the company’s pre-tax profit.</u></em></span></span></p> <p style="margin-left: 20px"></p> <p style="margin-left: 20px"><span style="font-family: 'Arial'"><span style="font-size: 10px"><em><strong>How were two and four-month salary determined for payout?</strong></em></span></span></p> <p style="margin-left: 20px"><span style="font-family: 'Arial'"><span style="font-size: 10px"><em><strong></strong>The target awards were determined based on historical MIP factors. For the past 10 years the average MIP award has been 2.11 months of salary for a one-unit participant. Two months is the one-unit target under the revised program.</em></span></span></p> <p style="margin-left: 20px"></p><p><span style="font-family: 'Arial'"> So what were the elements and results for 2006 you ask? </span></p><p style="margin-left: 20px"><span style="font-family: 'Arial'"><strong>Setting MIP goals and targets</strong> </span></p> <p style="margin-left: 20px"></p> <p style="margin-left: 20px"><span style="font-family: 'Arial'">The Compensation Committee, considering recommendations from the CEO and CFO, sets the company performance objectives and target amounts payable. </span></p> <p style="margin-left: 20px"></p> <p style="margin-left: 20px"><span style="font-family: 'Arial'">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: </span></p> <p style="margin-left: 20px"></p><p style="margin-left: 20px"><span style="font-family: 'Arial'">1. Growth in consolidated package volume </span></p> <p style="margin-left: 20px"><span style="font-family: 'Arial'">2. Growth in consolidated revenue </span></p> <p style="margin-left: 20px"><span style="font-family: 'Arial'">3. Growth in consolidated, as adjusted, net income </span></p> <p style="margin-left: 20px"><span style="font-family: 'Arial'">4. Non-operating cost as a percent of revenue </span></p> <p style="margin-left: 20px"><span style="font-family: 'Arial'">5. Package flow technology implementation </span></p> <p style="margin-left: 20px"><span style="font-family: 'Arial'">6. Successful integration of acquisitions </span></p> <p style="margin-left: 20px"></p></p> <p style="margin-left: 20px"></p> <p style="margin-left: 20px"><span style="font-family: 'Arial'">Executives are also evaluated on personal criteria including leadership, managerial skills and talent, business knowledge and execution of UPS’s overall business strategy, and adherence to company values. </span></p> <p style="margin-left: 20px"></p> <p style="margin-left: 20px"><span style="font-family: 'Arial'">The goals for the six business elements were based on our confidential business plans established at the beginning of the 2006 MIP fiscal year. These goals were consistent with other publicly disclosed financial targets for 2006, and were designed to be challenging yet achievable. <strong><em><u>After evaluating our performance against these goals, the Compensation Committee determined that the 2006 MIP award to be paid to all recommended managers, including the NEOs, would be reduced from the targeted award amount by 20 percent due to below plan performance with respect to certain of these business elements.</u></em></strong></span></p> <p style="margin-left: 20px"></p><p><span style="font-family: 'Arial'">Objective measurement is just not possible with the goals listed here. One almost wonders if ambiguity was not a goal of the new MIP plan; after all, they needed a way to be "cost neutral" and pay the $86 million cost for the LTIP bonus.</span></p><p> </p><p><span style="font-family: 'Arial'">"What can Gray do for you" just does not have a ring to it, does it?</span></p></blockquote><p></p>
[QUOTE="Black_6_Leader, post: 180007, member: 9413"] LOL Not exactly, [U]PEACOCK71[/U], how much have things changed. Gray has become the new color of UPS management under the current leadership . . . Look at MIP for example. This is the current description of the MIP plan, in a letter to current UPS Management: [INDENT][FONT=Arial][SIZE=2][I][B]How is the bonus award determined? [/B]The redesigned Managers Incentive Plan (MIP) is a bonus plan based on target awards for eligible plan participants. The targets are expressed as multiples of monthly salary similar to prior MIP factors. The aggregate award will be based on the actual award multiples as determined by the salary committee multiplied by the aggregate monthly salaries by award level (e.g. one-unit and two-unit). [U]In the past, MIP was a “profit sharing plan” and the aggregate award was determined based on a percentage of the company’s pre-tax profit.[/U][/I][/SIZE][/FONT] [FONT=Arial][SIZE=2][/SIZE][/FONT] [FONT=Arial][SIZE=2][I][B]How were two and four-month salary determined for payout? [/B]The target awards were determined based on historical MIP factors. For the past 10 years the average MIP award has been 2.11 months of salary for a one-unit participant. Two months is the one-unit target under the revised program.[/I][/SIZE][/FONT] [/INDENT][FONT=Arial] So what were the elements and results for 2006 you ask? [/FONT] [INDENT][FONT=Arial][B]Setting MIP goals and targets[/B] [/FONT] [FONT=Arial] [/FONT] [FONT=Arial]The Compensation Committee, considering recommendations from the CEO and CFO, sets the company performance objectives and target amounts payable. [/FONT] [FONT=Arial][/FONT][FONT=Arial] [/FONT] [FONT=Arial]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: [/FONT] [FONT=Arial] [/FONT] [INDENT][FONT=Arial]1. Growth in consolidated package volume [/FONT] [FONT=Arial]2. Growth in consolidated revenue [/FONT] [FONT=Arial]3. Growth in consolidated, as adjusted, net income [/FONT] [FONT=Arial]4. Non-operating cost as a percent of revenue [/FONT] [FONT=Arial]5. Package flow technology implementation [/FONT] [FONT=Arial]6. Successful integration of acquisitions [/FONT] [/INDENT][FONT=Arial] [/FONT] [FONT=Arial]Executives are also evaluated on personal criteria including leadership, managerial skills and talent, business knowledge and execution of UPS’s overall business strategy, and adherence to company values. [/FONT] [FONT=Arial] [/FONT] [FONT=Arial]The goals for the six business elements were based on our confidential business plans established at the beginning of the 2006 MIP fiscal year. These goals were consistent with other publicly disclosed financial targets for 2006, and were designed to be challenging yet achievable. [B][I][U]After evaluating our performance against these goals, the Compensation Committee determined that the 2006 MIP award to be paid to all recommended managers, including the NEOs, would be reduced from the targeted award amount by 20 percent due to below plan performance with respect to certain of these business elements.[/U][/I][/B][/FONT] [/INDENT][FONT=Arial]Objective measurement is just not possible with the goals listed here. One almost wonders if ambiguity was not a goal of the new MIP plan; after all, they needed a way to be "cost neutral" and pay the $86 million cost for the LTIP bonus.[/FONT] [FONT=Arial][/FONT] [FONT=Arial]"What can Gray do for you" just does not have a ring to it, does it?[/FONT] [/QUOTE]
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