Mgt Half-Month Bonus Still Intact

[Hoaxster]

Heard today that the 1/2 month bonus for Full-time Mgt will be awarded this year.
I was fully expecting this to be reduced or fully cut.
Hopefully that is a sign that the profits are up and MIP might be better than expected.

[randomUPSISer]

Originally Posted by Hoaxster

Heard today that the 1/2 month bonus for Full-time Mgt will be awarded this year.
I was fully expecting this to be reduced or fully cut.
Hopefully that is a sign that the profits are up and MIP might be better than expected.

I bet its a strategic decision where in they know A LOT of the MIP workforce, at least the ones that are able to, are already on edge and thinking about abandoning ship.

We had a meeting some months back about employee moral and responses to the pulse survey. Something like 30%+ of IS'ers in my portfolio said they would take a similar job at another company if it were offered. I think that has upper upper management concerned. There is only so much corporate can take while crying about the economy (and while still making profits) before people start deciding there are greener pastures. I personally think that point has been reached and corporate knows it.

[soberups]

Originally Posted by Hoaxster

Heard today that the 1/2 month bonus for Full-time Mgt will be awarded this year.
I was fully expecting this to be reduced or fully cut.
Hopefully that is a sign that the profits are up and MIP might be better than expected.

Scott Davis gave himself a $5 million raise. Its nice to see that he is willing to share a few crumbs off of his plate with the lower level management folks.

[BrownBlackandBlue]

Originally Posted by Hoaxster

Heard today that the 1/2 month bonus for Full-time Mgt will be awarded this year.
I was fully expecting this to be reduced or fully cut.
Hopefully that is a sign that the profits are up and MIP might be better than expected.

I don't think the 1/2 month is a bonus, it is part of our annual salary that is paid in a lump sum at Christmas time. Cutting that would be on a different level than cuts to the MIP or no raises.

[BrownBlackandBlue]

Originally Posted by randomUPSISer

I bet its a strategic decision where in they know A LOT of the MIP workforce, at least the ones that are able to, are already on edge and thinking about abandoning ship.

We had a meeting some months back about employee moral and responses to the pulse survey. Something like 30%+ of IS'ers in my portfolio said they would take a similar job at another company if it were offered. I think that has upper upper management concerned. There is only so much corporate can take while crying about the economy (and while still making profits) before people start deciding there are greener pastures. I personally think that point has been reached and corporate knows it.

I think corporate understands better than the average person just how bad this economy and job market are and also the possiblity for it to get much worse. I think they are acting prudently in an effort to protect the viability of the company and our jobs. Have your IS'ers test the job maket on the downlow, and they may not feel so disgruntled about their sacrifices.

[hangin455]

Originally Posted by Hoaxster

Heard today that the 1/2 month bonus for Full-time Mgt will be awarded this year.
I was fully expecting this to be reduced or fully cut.
Hopefully that is a sign that the profits are up and MIP might be better than expected.

Another motive for not eliminating it may be the recent litigations where Sup's are looking for OT pay. Just another way for UPS to differentiate the Mgmt from hourly...

[randomUPSISer]

Originally Posted by BrownBlackandBlue

I think corporate understands better than the average person just how bad this economy and job market are and also the possiblity for it to get much worse. I think they are acting prudently in an effort to protect the viability of the company and our jobs. Have your IS'ers test the job maket on the downlow, and they may not feel so disgruntled about their sacrifices.

Believe it or not, for IT jobs the economy isn't all that bad. It's not as good as it has been in recent years but there are still lots of IT jobs out there.

I even saw a report on CNN stating that IT and health care are among the least affected job markets.

[pretzel_man]

Originally Posted by soberups

Scott Davis gave himself a $5 million raise. Its nice to see that he is willing to share a few crumbs off of his plate with the lower level management folks.

Can you post a link on that?

According to Forbes (4/22/2009), Davis is the 444th highest paid CEO.

http://www.forbes.com/lists/2009/12/...avis_PA5Q.html

I've asked the question before... If you should make equal or better than your peers, why shouldn't UPS management (including the CEO)?

P-Man

[soberups]

Originally Posted by pretzel_man

Can you post a link on that?

According to Forbes (4/22/2009), Davis is the 444th highest paid CEO.

http://www.forbes.com/lists/2009/12/...avis_PA5Q.html

I've asked the question before... If you should make equal or better than your peers, why shouldn't UPS management (including the CEO)?

P-Man

Many of Davis's "peers" are grossly overpaid CEO's of failing companies who continue to be lavishly compensated even as the companies they oversee are circling the drain.

I have no problem with Davis getting a $5 million raise, but it takes a big pair of brass ones to do that at the same time you are taking an axe to the pay and bennies of your lower level management.

He could have set a better example by agreeing to having that raise deferred until such time as the company he runs is not having to make cuts elsewhere.

If you take the position that it is fair for him to take a raise while simultaneously cutting the pay of those below him, you must then take the position that those below him were overpaid to begin with.

I dont always see eye to eye with my management, but I have never felt that they were overpaid when you factor in the hours that they work and the stress that they are under.

IMHO the entire management team at UPS should have its pay raised or lowered by the same percentage, as economic conditions permit. When a select few at the top gain lavish increases at the expense of those below, it sets a poor example.

[Hoaxster]

Originally Posted by pretzel_man

Can you post a link on that?

According to Forbes (4/22/2009), Davis is the 444th highest paid CEO.

http://www.forbes.com/lists/2009/12/...avis_PA5Q.html

I've asked the question before... If you should make equal or better than your peers, why shouldn't UPS management (including the CEO)?

P-Man

Good point - if Davis's pay was based relative to what UPS drivers make compared to other delivery drivers, Scott should be making over $500 million a year.

[brownrodster]

Originally Posted by Hoaxster

Good point - if Davis's pay was based relative to what UPS drivers make compared to other delivery drivers, Scott should be making over $500 million a year.

LOL

[Hoaxster]

Originally Posted by soberups

Many of Davis's "peers" are grossly overpaid CEO's of failing companies who continue to be lavishly compensated even as the companies they oversee are circling the drain.

I have no problem with Davis getting a $5 million raise, but it takes a big pair of brass ones to do that at the same time you are taking an axe to the pay and bennies of your lower level management.

He could have set a better example by agreeing to having that raise deferred until such time as the company he runs is not having to make cuts elsewhere.

If you take the position that it is fair for him to take a raise while simultaneously cutting the pay of those below him, you must then take the position that those below him were overpaid to begin with.

I dont always see eye to eye with my management, but I have never felt that they were overpaid when you factor in the hours that they work and the stress that they are under.

IMHO the entire management team at UPS should have its pay raised or lowered by the same percentage, as economic conditions permit. When a select few at the top gain lavish increases at the expense of those below, it sets a poor example.

What you and others don't understand is that Scott's compensation and the other people on the Management Committee is set by the Board of Directors who use outside consultants to determine what the management committee are compensated. The Management Committee oversees what everyone else at UPS makes but not their own compensation.
This is supposed to keep them "honest" and ensure their compensation is not abused.
What is ironic, if the Management Committee set their own compensation, it would probably (almost for sure) be less than what they are getting.

I don't disagree with the gist of what you all are saying.

And one more thing, I doubt if anyone on the Management Committee or The Board cares one hoot what you or I think.

[MobileBA]

Outside consultants? Are those the retired UPS CEO's? Really, what a joke, they are all padding each others' wallets at the expense of the rank and file.

[soberups]

Originally Posted by Hoaxster

Good point - if Davis's pay was based relative to what UPS drivers make compared to other delivery drivers, Scott should be making over $500 million a year.

Your math is a bit...inaccurate.

According to the pie chart in the link provided, Davis's salary was $1.52 million last year.

To achieve your "$500 million" figure, your math would imply that UPS drivers make 329 times as much as Fedex or DHL drivers.

We dont make 329 times as much as they do. We dont make 2 times what they do. We dont even make .5 times what they do...so your math is off by about 1000% give or take a little.

With math "skills" like that, you should be doing timestudies. You would fit right in!

My entire compensation package is something like 30% higher than what the FedEx driver in my area makes.

I handle 75% more packages on a daily basis than he does. I handle at least 90% more weight on a daily basis than he does. And I spent well over half of my career driving obsolete, ergonomically deficient vehicles with high steps and no power steering while he had modern equipment that didnt wreck his knees and back.

In any case, this thread is about management compensation, and the wisdom (or lack therof) in granting the CEO a huge increase while at the same time giving lower level management the shaft.

[Hoaxster]

Originally Posted by soberups

Your math is a bit...inaccurate.

The $500 Million was not based on math.

It was based on making outrageous claims based on emotional responses and blaming others and just whining and bit**ing in general.

Brownrodster got the point. LOL

[soberups]

Originally Posted by Hoaxster

It was based on making outrageous claims based on emotional responses and blaming others and just whining and bit**ing in general.

Sounds like an on-car sup trying to browbeat an overallowed driver into "making standard"....

[Hoaxster]

Originally Posted by soberups

Sounds like an on-car sup trying to browbeat an overallowed driver into "making standard"....

I was just doing what IE told me to do. IE makes all decisions. including who gets 3 point seat belts.

PS Sorry you don't have sense of humor. I added the smiley face this time as a clue.

[pretzel_man]

Originally Posted by soberups

Your math is a bit...inaccurate.

According to the pie chart in the link provided, Davis's salary was $1.52 million last year.

To achieve your "$500 million" figure, your math would imply that UPS drivers make 329 times as much as Fedex or DHL drivers.

We dont make 329 times as much as they do. We dont make 2 times what they do. We dont even make .5 times what they do...so your math is off by about 1000% give or take a little.

With math "skills" like that, you should be doing timestudies. You would fit right in!

My entire compensation package is something like 30% higher than what the FedEx driver in my area makes.

I handle 75% more packages on a daily basis than he does. I handle at least 90% more weight on a daily basis than he does. And I spent well over half of my career driving obsolete, ergonomically deficient vehicles with high steps and no power steering while he had modern equipment that didnt wreck his knees and back.

In any case, this thread is about management compensation, and the wisdom (or lack therof) in granting the CEO a huge increase while at the same time giving lower level management the shaft.

With the exception of a TDU website, I could find no evidence of a $5M raise for Davis. If you have details on that, I'd like to read it.

Here is another link showing davis making $5.6M.
http://people.forbes.com/profile/d-scott-davis/41433

If you look, nearly $4M is in restricted stock awards and pension. I wonder if they correctly calculated his incentive? Did they look at the future value?

Again, I see no reason why a fortune 50 CEO should not make "market value". A driver does.

P-Man

[Hoaxster]

Originally Posted by soberups

Your math is a bit...inaccurate.


To achieve your "$500 million" figure, your math would imply that UPS drivers make 329 times as much as Fedex or DHL drivers.

I guess you are right.
Since IE controls everything, including Scott's salary, I meant for it to be 340 times as much.
That would be consistent with the 340 methods.

[dman]

http://people.forbes.com/profile/d-scott-davis/41433

D. Scott Davis


Chief Executive Officer and Chairman of the Board


Compensation for 2008
Salary $960,000.00 Bonus $40,000.00 Other Annual Compensation $0.00 Long term incentive plan payouts $0.00 Restricted stock awards $3,188,915.00 Security underlying options $0.00 All other compensation $30,014.00 Option awards $ $535,325.00 Non-equity incentive plan compensation $136,944.00 Change in pension value and nonqualified deferred compensation earnings $712,041.00 Total Compensation $5,603,239.00

[dman]

http://www.sec.gov/Archives/edgar/da...6486def14a.htm

2007-2009
2008-2010
2009-2011
Planned 2010-2012
LTIP Target
LTIP Target
LTIP Target
LTIP Target
(% of base salary) (% of base salary) (% of base salary) (% of base salary) Chief executive officer
250 475 600 675 Chief operating officer
225 450 500 575 Chief financial officer
225 250 275 300

Page 27 of UPS's 3-13-2009 DEF 14A with the SEC shows the increase in LTIP that was voted to the CEO, COO, & CFO at the time managements raises were frozen.

This is how it looked on your proxy card:

3. Approval of the United Parcel Service, Inc. 2009 Omnibus Incentive Compensation Plan.