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C'mon Wall St. Give UPS some love
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<blockquote data-quote="j13501" data-source="post: 622380" data-attributes="member: 918"><p>Random, </p><p>A few points to address in your post. UPS doesn't "create" the stock it distributes in MIP, LTIP, etc. That would increase outstanding shares in the market. Instead, it uses retained cash for management compensation to purchase stock and then distributes it as earned compensation to the management team. In fact, during the last few years, we've bought back a larger amount of stock (than needed for MIP) with our extra cash- which helped keep our stock from trending even lower earlier this year. </p><p></p><p>Secondly, it was the Board of Directors prior to the IPO, that was filled with high level managers. In the last 10 years the make-up of the board has slowly changed so that it is overwhelmingly non-upsers that sit on the board. Only our current CEO (Scott Davis) and our former CEO (Mike Eskew) are board members who are/were employees of UPS. </p><p></p><p>It could be a valid argument that the change in the BOD to mostly non-upsers is responsible for the changes in today's "culture" at UPS, but everyone on the Board and the management committee wants to see share price appreciate. When you hold a large number of UPS shares, the valid of your investment increases much quicker with increasing stock price than with stable dividends. IMHO they want to see both.</p></blockquote><p></p>
[QUOTE="j13501, post: 622380, member: 918"] Random, A few points to address in your post. UPS doesn't "create" the stock it distributes in MIP, LTIP, etc. That would increase outstanding shares in the market. Instead, it uses retained cash for management compensation to purchase stock and then distributes it as earned compensation to the management team. In fact, during the last few years, we've bought back a larger amount of stock (than needed for MIP) with our extra cash- which helped keep our stock from trending even lower earlier this year. Secondly, it was the Board of Directors prior to the IPO, that was filled with high level managers. In the last 10 years the make-up of the board has slowly changed so that it is overwhelmingly non-upsers that sit on the board. Only our current CEO (Scott Davis) and our former CEO (Mike Eskew) are board members who are/were employees of UPS. It could be a valid argument that the change in the BOD to mostly non-upsers is responsible for the changes in today's "culture" at UPS, but everyone on the Board and the management committee wants to see share price appreciate. When you hold a large number of UPS shares, the valid of your investment increases much quicker with increasing stock price than with stable dividends. IMHO they want to see both. [/QUOTE]
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