I understand cutting the fat. If profit is down 30% it is still profit!
I share no love for managers but even I think you get your raise, 401k and bonus reduced by 30%. The point is you still get it, just at the reduced rate.
Our CEO got a HUGE, GIANT, raise last year plus a HUGE, GIANT, bonus last year.
The managers got screwed.
The timing of the omnibus plan (pay raise for CEO, CFO, COO) really stunk. There was no reason they couldn't wait a year.
On the other hand, the HUGE raise of those top executives is variable based on how well UPS does.
Of those three can reach their top pay, I would be ecstatic. Our stock would begin growing again.
As far as profits, companies are measures based on how their profits GROW.
Where do profits go by the way?
They go to shareowers in the form of dividends, and then they are invested back into the business for growth. If profits are down, then there is less money for dividends and investment back in the business.
This is not new. It was the same when we were private.
Jim Casey said that we needed to take care of the shareowners because they gave us our jobs.
P-Man