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<blockquote data-quote="upscorpis" data-source="post: 438945" data-attributes="member: 2017"><p>Perhaps I wasn't clear so I'll try again. Since we went public, the MIP that had to be taken in stock has not been appreciating. Before we went public, it would appreciate. Options have been worthless. </p><p></p><p>Making half of MIP available as cash was one way to reduce the impact of this reality. No longer awarding options but instead RPUs to lower levels is another attempt at reducing the impact. RPUs are more money locked up which not appreciating but that is certainly better than the worthless options.</p><p></p><p>The theme of this thread is understanding the benefits of going public. I'm attempting to show how this move has been detrimental (when compared to the pre-IPO system) to the partners that were young in their careers when this occurred. Although these folks did receive an initial gain in their current holdings those holdings were likely modest due to their tenure. This one time gain has not offset the impact of the lack of appreciation in MIP shares since that time which appears likely to continue for the foreseeable future. Contrast that reality with the growth in MIP shares experienced before the IPO.</p><p></p><p>BTW, a dollar a year is an abysmal return so I don't believe that example is demonstrative of what you were intending.</p><p></p><p>Please don't take my words as bashing UPS. I'm just stating reality. I fully realize there are no guarantees in life and as I stated before, things could certainly be a lot worse.</p></blockquote><p></p>
[QUOTE="upscorpis, post: 438945, member: 2017"] Perhaps I wasn't clear so I'll try again. Since we went public, the MIP that had to be taken in stock has not been appreciating. Before we went public, it would appreciate. Options have been worthless. Making half of MIP available as cash was one way to reduce the impact of this reality. No longer awarding options but instead RPUs to lower levels is another attempt at reducing the impact. RPUs are more money locked up which not appreciating but that is certainly better than the worthless options. The theme of this thread is understanding the benefits of going public. I'm attempting to show how this move has been detrimental (when compared to the pre-IPO system) to the partners that were young in their careers when this occurred. Although these folks did receive an initial gain in their current holdings those holdings were likely modest due to their tenure. This one time gain has not offset the impact of the lack of appreciation in MIP shares since that time which appears likely to continue for the foreseeable future. Contrast that reality with the growth in MIP shares experienced before the IPO. BTW, a dollar a year is an abysmal return so I don't believe that example is demonstrative of what you were intending. Please don't take my words as bashing UPS. I'm just stating reality. I fully realize there are no guarantees in life and as I stated before, things could certainly be a lot worse. [/QUOTE]
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