LTIP for the CEO, COO & CFO

Discussion in 'UPS Discussions' started by Black_6_Leader, Mar 17, 2009.

  1. Listen to this . . . The Compensation Committee has a three year plan to increase the bonuses for the CEO from 250% of the annual salary to 675%; the COO from 225% to 575% and the CFO from 225% to 300%

    "While it expects to continue to monitor the effect of global economic conditions on the Company, the Compensation Committee is committed to the implementation of its plan to increase the total compensation of these three executive officer positions through increasing LTIP target award values, with the increase in compensation earned by these executives, subject to meeting the performance targets over the three-year performance period."

    This was found on page 27 of the proxy statement (SEC 14)
  2. over9five

    over9five Senior Member Staff Member

    Well they deserve it. In fact, I think they deserve far more than that. How do we expect our company leaders to be able to survive on such a pittance.

    Is there someone I could write to in order to express my desire that our company leaders be paid more?

    Maybe we could take up donations. I would be willing to contribute money, stock, food, ANYTHING to prevent our company leaders from starving, homeless on the streets.

  3. MechanicForBrown

    MechanicForBrown Prblm found,part on order

    AND............ Thanks Be To God!:wink2:
    I'd be willing to donate the lint from my belly button if they wanted?
  4. BURMDPsupe

    BURMDPsupe Member

    ENRON anyone? Now UPS is building golden parachutes for our top execs, wonderful.

  5. drewed

    drewed Shankman

    Im not to say how they should be compensated, but I will say its not a fair comparison to enron or any of the "golden parachutes" those execs would gain in the hundreds of millions of dollars plus their pensions... Even if you doubled our CEOs compensation it still would be far less then many execs in far smaller companies
  6. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I think we should clip coupons for Scott and the boys so that they can save a few bucks at the grocery store.
  7. moreluck

    moreluck golden ticket member

    Too hard to find coupons for Brie. ........only Velveeta & Spam !!
  8. trplnkl

    trplnkl 555

    I could care less what the top Execs in other corps make, I don't work for them and they aren't screwing my supervisors out of raises that everyone knows they have earned. Just putting up with my butt should earn them "some" kind of raise. Then when you add in putting up with the Dreweds of the company...well let's just say it isn't right that they(the big wheels) get raises when the working management is getting nothing.
    You all know I talk crap about my manager and the O/C sups(that has nothing to do with this), but if they don't deserve a 'em.

    other than that I don't have an opinion on it.
  9. pretzel_man

    pretzel_man Well-Known Member

    LTIP is based on company performance.

    LTIP is tied to metrics that are leading indicators to company growth and stock growth.

    If these top executives can help move those indicators, I'm glad that they get this amount and more.

    A district manager has 3/4 of their pay tied to incentives based on business indicators. Region managers, management committee, and C-Level execs have an even greater % of pay tied to these leading business indicators.

    If the company does well, they will.

  10. The three measures for LTIP in the proxy statement

    Revenue growth

    Operating return on invested capital

    Three-year net income or EPS targets

    The key point that you missed is that the average UPS supervisor or manager has seen their total compensation cut ot frozen twice in the last five years; while the troika at the top get rewards that are not reflective of the state of the economy (and I'll quote again "While it expects to continue to monitor the effect of global economic conditions on the Company, the Compensation Committee is committed to the implementation of its plan to increase the total compensation") ; or the shared sacrifice that was the principle of the partnership.

    Heck, the Management Committee is not even limited by the salary guidelines imposed on the rest of the partners on the management team "In 2008, UPS approved an average base salary increase of 3.5% for all management employees other than members of the Management Committee based upon company performance in 2007". This is on page 20 of the proxy.

    Face it, the thinking espoused now is not what made UPS great
  11. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    I realize that these people don't define how they will be compensated, but the perceived compensation outlined in the SEC filing projects a very poor example of leadership by example when the company is asking everyone else to sacrifice.

    Hopefully they have other leadership qualities that will help them get the results they need for themselves and the company as a whole.
  12. Hangingon

    Hangingon New Member

    I guess we know where all that money they saved on doing away with the safe driving awards and the Circle of Honor program went.
  13. brownmonster

    brownmonster Man of Great Wisdom

    Get the stock to $300 a share and they can have all they want.
  14. DS

    DS Fenderbender

    Drewed I had to call you on this.
    (Im not to say how they should be compensated)
    Well you did have one good point.

    SO WHAT? Greed is what got America into this recession.
    Children must learn from thier mistakes....
    Don't get me wrong but much smaller companies have a helluva lot more to lose if things go south.(east?)
    heres what they made in 2006,and you can bet its a lot more in 2009.
  15. bones

    bones Member

    I agree with Hoaxter, since we went public every decission (mayby not every but I can't think of one that hasn't) that I have seen made with respect to any type of compensation for grade 18 and down has had a negative impact (vacation, MIP, benifits, raises this year, etc...). What a supervisor or manager with a 25 to 30 year career will have at retirement in 20 years is not a 10th of what they would have had 10 to 15 years ago (if you add in the affect of inflation it is worse) yet the decissions made with respect to district manager and above compensaion keeps attempting to raise their compensation. Very bad timing considering what they are asking from everyone else (no raises, no gain sharing for p/t sups, no benifits for p/t's until after a year, etc...). I have no idea why someone making $500,000 to $5,000,000 a year would think they needed and deserved more (to put it in perspective that is $40,000 to $400,000 a month). Reminds me of AIG giving out millions of dollars in bonuses to people that lost billions of dollars, if that is top talent fire them all, pay some average people 1/20th of what they make (still over 6 figures) and see how they do.
  16. drewed

    drewed Shankman

    Its not the same thing, AIG gave out atleast one million dollars to 76 execs in just bonuses. Yes I agree its a bum deal for the ft sups to not get a raise and that treatment should have been from the board down. Comparing UPS to any of the bubble companies is like comparing the corner hardware store to a big box store, UPS knows how to protect its bottom line, knows how to cut cost.
  17. brownboxman

    brownboxman Active Member

    Interesting comments. But how do you suppose those corporate giants move numbers. Sure they make business decisions that tie into market trends and evaluate the compitition and how to price to compete. But honestly right now all I see is a beat down! Get sups to do more work, get hourly to work more hours, and work faster and get them to think it is their job to create business. Please dont beleive there is some magic they do that makes them worth millions. Yes they should be compensated well but not at the expense of the people in the trenches making it happen, the trend I see is plain and simple less people do more work sacrificing their personal lives and health to make the numbers!
  18. soberups

    soberups Pees in the brown Koolaid

    I choose not to concern myself with how the management of this company is compensated.

    In 1999 when the stock went public and split, some management became instant millionaires while I recieved a $.65 raise. I didnt begrudge them their profit; they made one choice while I made another, they invested and took a risk and profited from that risk. Thats the American way, and they were entitled to profit from their investment.

    Well now the worm has turned, the stock has gone into the tank, and management wages have been frozen. Meanwhile, I am getting a $.70 raise. I dont feel sorry for them now, any more than I felt jealous of them 10 years ago.
  19. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    No worse slight that total disinterest.
  20. soberups

    soberups Pees in the brown Koolaid

    If it were in my power to do so, I would restore the pay cut that our management had to take. It is in my best interest to be managed by people who are well paid for the work they do.

    My only point was that I am not jealous of the millions of dollars made by our CEO and other upper-level management. It doesnt concern me. I made a choice to be a driver knowing full well what sort of compensation I would likely receive. The people currently in lower management also made their choice and they knew or should have known the reality of what they were doing in terms of the risks and rewards they could expect.