Crash landing - 2019

Discussion in 'UPS Partners' started by jeepguy63, Mar 23, 2019.

  1. jeepguy63

    jeepguy63 Member

    Read through the 10k and the proxy statement. (UPS.com - then investor relations - then financials)

    The senior leadership, CEO, COO, CFO, Mr Walmart, and Mr Xerox all being patted on the back for a wonderful job by the compensation committee of the board of directors.
    See page 35 of the proxy. Their annual evaluation is posted there.
    On the same page is their target MIP - Their annual base pay, times their individual mip target equals target. It shows that all of them except the CFO received above the 110% mip factor! CEO received $657k more than target - or 32% above - similar to the other “named” executives except the CFO.

    The board should be voted out, the mgmt committee should all be fired. Given the 10:1 vote, Iit cannot and will not ever happen. This company is uninvestable. The CFO got the same MIP as the rest of management - an indication they aren’t happy with him! He should be fired!

    Page 22 of the 10k shows that domestic revenue has grown from $35.9B in 2014 to $43.6B in 2018 - while operating profit has declined from $4.2B in 2014 to $3.6B in 2018.

    Leadership and the Board must think hiring Mr Walmart and Mr Xerox will make a difference- their employment offer letters showing the multi-million dollar payments to start are in the 10K. Mr Xerox spent +30 years with Xerox as a marketing genius- anyone remember one catchy marketing campaign from them? Anyone have Xerox stock because of their excellent returns? WTF?
    Look back in five years and see if Walmart’s performance for 2012-2017 or 2018-2023 is better. Were they better off with him or without. Similarly- watch UPS 2018-2013 for the same - will the stock price have a transformational change?

    P32 of the Proxy shows the company’s UPS compares itself to for senior mgmt’s stock options. If Walmart and Xerox are a pool of great talent- why aren’t they in the list? Why not hire someone from Target or Fedex?

    Page 21 shows the stock price underperformance vs the S&P 500 and the transportation sector. UPS under performed both from 2013-2108. Investors know!

    This company is in the ditch, and is digging deeper. It will flip into the lake! Upside down and all inhabitants will likely drown under the current leadership.

    Read through the last three investor presentations - fall 2018, spring 2014, and 2011. Promises, promises, promises. No delivery.

    The future business case studies on this once great company will be titled “Brown up to their eyeballs”.

    Sad.

    My boss reviewed my ownership incentive and made the pitch of how much stock I should own. I pointed out that I have invested my retirement savings elsewhere- funded by many years of mip, and am doing quite well.
    I pointed out to him how little stock the new president of us domestic has vs the other mgmt committee members. He is 53 with just over 4K shares. If he is invested elsewhere vs the other MC members - he may be the smartest one of the bunch!
     
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  2. Old Man Jingles

    Old Man Jingles Rat out of a cage

    Well Jeep,
    It looks like you have gone off-road.
     
  3. Dragon

    Dragon Package Center Manager


    I cannot wait to see the raises offered this year...another exciting transformation coming in the near future.
     
  4. thecamel

    thecamel Waiting to put the re in front of tired

    Are you going to threaten a walkout? It did wonders for us. Good luck.
     
  5. Jkloc420

    Jkloc420 Well-Known Member

    what the hell is this
     
  6. Popeye

    Popeye Active Member

    LOL! Been there, done that. I systematically sold off my UPS stock beginning shortly after the IPO. When our dept manager (aka "his lordship" LOL!) counseled me about this I told him my reasons, including the introduction of market risk that hadn't been present before. I talked about a scenario where the company does poorly, the stock price sinks, layoffs result and the people laid off have to sell at a depressed price to live on. This scenario was so far removed from his little universe revolving around him that all he could do was look at me like a deer in the headlights. He didn't say a word, because he didn't understand anything I was talking about. Now, here we are!
     
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  7. jeepguy63

    jeepguy63 Member

    Yup. Me too. Bought apple in the early 2000’s at 70-80. Went to 700, split 7:1 and is now in the 180 range. Could give example after example - including a couple losses.
    Stock price in early 2000 post Ipoh was in the high 60’s. Today it’s 110ish. Damn near 20 years and can’t even get a double to stick. Based on 1980’s and 90’s growth, change and results, a 4:1 and a 2:1 split plus tremendous growth.
    At a 15 forward looking PE, UPS has to get to 10 earnings per share to get to $150 stock price. Can’t happen under the current model and strategy.

    Just a job. Pay me. Hopefully I can lock in a retirement in two years before they tap the pension dollars.
     
  8. Returntosender

    Returntosender Well-Known Member

    . What type dress shoes for district level meetings to buy with all bonus money
    73BBE7B9-1635-4C7C-89C9-4220BB5C32A2.jpeg
     
  9. Coldworld

    Coldworld Bad mall cop...no donut!!!

    Don’t be jelly of Mr. Walmart....once he wacks your job and many of your “partners”, word on the street is you will have a job lined up for you.... part of the transformation job relocation program.....523E4EC2-A8F6-412D-A82B-54FD06386BFE.jpeg1AA9DC64-A31D-4754-BFBD-45063291E85D.jpeg48E4DAE3-A98D-449D-8B93-FF6674563D67.jpeg
     
  10. jeepguy63

    jeepguy63 Member

    Bump. One year later, same story. Stock price at the moment, 109.88. Based on the q4 results just meeting consensus (down to the penny!) MIP is doomed! This company needs massive structural changes to survive. Rev per piece down YOY, salaries up. Unless ups can eliminate massive quantities of hours quickly, it is doomed!
    Mgmt will likely be rewarded with MIP factor in the 40-60 range. Congratulations!
     
  11. Indecisi0n

    Indecisi0n Well-Known Member

    Is this how we got the best contract ever this time around?
     
  12. Dragon

    Dragon Package Center Manager

    So what is the answer?
     
  13. Ou812fu

    Ou812fu Polishing toilet bowls since 1966.

    I've got an idea. Quit giving these massive reduced rates to companies.
     
  14. rod

    rod #1 on Upstates "list"

    Can't even do that anymore. The last I read Walmart was phasing out their "greeters" program. Aparently they weren't doing all that good of job keeping the getto thugs and trailer park trash from running out the door with stolen flat screen tvs.
     
  15. rod

    rod #1 on Upstates "list"

  16. jeepguy63

    jeepguy63 Member

    Great question. Business 101. Define the problem (share owners and Mgmt not getting fair return - imho). Develop a solution.
    Look at Amazon earnings tonight. There is your answer.
     
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  18. Whither

    Whither Scofflaw

    Between the lines I hear this guy screaming "SLASH WAGES, CRACK THE PRODUCTIVITY WHIP!"