Why should I care?

Discussion in 'UPS Discussions' started by worthlessdriver, Mar 9, 2009.

  1. worthlessdriver

    worthlessdriver New Member

    I am not being a smart ***** in asking this question, but I truly would like to know the answer.
    I hear mgt. moaning about our stock price from time to time. They talk as if stock was our main product. Last time I checked we were a pkg. del. co.
    Is their motive a selfish one(after all the mgt.holds most of the stock) or does it really matter to the companies bottom line? I have been here for over 30 years and most of my time UPS was a private company and they seemed to do just fine.

    So I ask again "Why should I care what the stock price is unless I own some"?
  2. trickpony1

    trickpony1 Well-Known Member

    Did you hypothecate your first born child and your mother for your stock? Probably not.
    Most managers are hypothecated up to their ears and are scared of several things:
    1) they won't be multi-millionaires when they retire and
    2) they may lose all their SUV's, the wife's Lexus, the kids 4Runner and their really big house if the stock doesn't increase in value.
    Last edited: Mar 9, 2009
  3. DS

    DS Fenderbender

    I hear you man.I also own no stock,but have been a driver a long time.
    All I can say is that big money has no soul.The main CEO's are clearing over $200M a year but since its not the $250M they made last year,they are cutting everywhere....ups is going to be fine...I wish we still had Jim Casey...and stayed private,if anything can kill us,its greed,and its rampant.Lets be the company that Casey envisioned...a company that you can depend on...even in hard times
  4. soberups

    soberups Pees in the brown Koolaid

    I care because stock is the main component of management's retirement.

    If they are losing money, the get fearful.

    Fearful people tend to make stupid decisions.

    Its not fun working for fearful people.
  5. drewed

    drewed Shankman

    It should be said that UPSs CEO only makes a couple mill a year.....
  6. trplnkl

    trplnkl 555

  7. Bagel

    Bagel Twilight Supervisor

    QFT. This is basically the crux point of it.
    Alot of money is being lost from the upper end due to the dip in stock price; basically if someone is taking a few thousand out of your wallet, you'd be a little disappointed and that is what management is reflecting right now.

    My take on it is always the same with them; they have so much, being let off with a bit less may be a bad thing but they're still eons ahead of alot of people out there.
  8. trplnkl

    trplnkl 555

    I am no fan of our company being public stock and I do not/ will not own any.
    However the question of "why should I care" has an easy answer. We have to care because the stock price is what stock buyers consider our company's worth and if it doesn't do well the stocks will not be bought. If that spiral continues, we could all be in big trouble.
  9. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Yeah, who does he think he is...an airline mechanic?
  10. trplnkl

    trplnkl 555

    Really, that's my point.
  11. Stran

    Stran Holy Toledo

    The CEO of UPS is the only board member making over a million dollars a year. The board of FedEx has 6 members making over a million a year. Most management have received stock instead of monetary gains. At the division management level and above they receive stock options they can't act on for a set number of years. If the value of the stock drops the options are worthless. Even a center manager holds 30-50,000 shares of stock they have accumulated over the years. And lets not forget their 401K match was in stock. 50,000 shares lose half their value (UPS traded above $80 for awhile) and yeah you would get a little nervous.
  12. worthlessdriver

    worthlessdriver New Member

    How could we be in trouble? What does stock price have to do with the daily operation of UPS? Like I said before UPS went 90 years private and did just fine. Do we as a co. answer to stock holders for advice on del. pkgs?
  13. Hawk780

    Hawk780 No One in Particular

    This is an interesting question. I would suggest that the company stock price is important to the operations folks because the price reflects a lot of things - the main thing being current value of the company, along with anticipated future streams of income. So, that said, it's a financial barometer of the company. So, if the stock's not doing well (compared to the rest of the market), there's a good chance UPS is not doing well, and that could impact operational jobs, future negotiations, etc.

    Now, all that said, I think UPS's stock has held up better than many of the fortune 500 companies' stock have, so it's all relative.
    Last edited: Mar 10, 2009
  14. Channahon

    Channahon New Member

    I had one of those options that expired this year, and did nothing with it. Dissapointing, absolutely, but I never really factored stock options into my retirement, to me it was an added bonus to my MIP, which was part of my salary.

    As far as the current management moaning about the stock price, well, that's just human nature. They received no raises this year, 401K's are suspended, and in some cases their workloads have increased due to district consolidations, or management postions not being filled due to attrition.

    UPS is doing what it needs to do in this horrible economy, which is not only impacting hourly union and non union employees, but management as well.

    Overall, I think UPS is faring better than other companies, that have received government bailout money and are still struggling in this economy.

    There have been recessions before in the country, and the US has recovered, how long it will take is anyone's guess.
  15. JustTired

    JustTired free at last.......

    While the Co. doesn't exactly get advise on delivering pkgs from the 'publicly held stockholders' , they do effect how business is conducted. After all, that "public" controls the stock price.

    When the stock was privately held, the price was controlled by the board of directors. While it didn't necessarily grow by leaps and bounds, it did almost always go up in value. In my opinion, the move to go public was motivated by greed. The greed of those on top at the time.

    I don't remember the figures....but those in the highest positions cashed out big and then most of them were gone shortly afterward. As an example, let's say someone had 100,000 shares at $60-70(price 6 mos. after IPO) with options to buy more. They could cash that 100,000 in and turn right around and buy stock back at their option value. I seem to remember some having options of around $14/share. On paper they made millions in a matter of minutes.

    Except for the relatively few who profited by going public, it has been a disaster ever since.

    I cashed my stock in about 4 years ago (mid-$70s). While I didn't get rich, it did afford me the opportunity to pay my house off. It was part of the plan that would allow me to retire when I wanted to. As things have turned out....I guess it made me look like a genius. Pure luck...believe me!
  16. trplnkl

    trplnkl 555

    If you think the cut backs UPS is doing now are drastic, you aint seen nothing if our stock prices go down far enough. The public stock holders don't even get a vote on how we rung the company, but if we become a company that share holders no longer trust or can rely on for returns they will not invest in us anymore. Then the stock goes down and confidence goes lower, rinse and repeat. Then for cash flow the company starts getting harder to deal with,union wise, and then the stock goes down even more...yadda yadda yadda.
    The stock price already has an impact on the daily operations, why do you think they are consolidating districts and cutting routes?
  17. govols019

    govols019 You smell that?

    It's cheap enough now I just might start buying.
  18. anonymous6

    anonymous6 Guest

    "don't put all your eggs in one basket."

    simple and smart words to live by