First Time MIP Incentive Award

[johnbuck]

This past year I was promoted from a specialist position to a supervisor position. I understand that being a first year MIP award participant my award is going go in as all Class A Stock. Do you know if I am about to sell that stock? I looked on UPSers.com and didn't see much on selling the stock.

Probably going try to sell it for cash if I can. Any disadvantages of selling it? Obviously as a company they would like me to hold on to the Class A just for voting rights etc... But to be honest I could care less what they would like me to do.

 

[Catatonic]

This past year I was promoted from a specialist position to a supervisor position. I understand that being a first year MIP award participant my award is going go in as all Class A Stock. Do you know if I am about to sell that stock? I looked on UPSers.com and didn't see much on selling the stock.

Probably going try to sell it for cash if I can. Any disadvantages of selling it? Obviously as a company they would like me to hold on to the Class A just for voting rights etc... But to be honest I could care less what they would like me to do.

They are sending you a message by giving it all to you in stock.
UPS wants you to feel as if you have a stake in the company.
I understand "I could care less what they would like me to do" but the choices you make today will affect your tomorrow.
If you are not interested in long-term employment with UPS and if you are satisfied with being in the same position for the duration of your employment ... sell.

Class A voting rights are not a concern BTW.

 

[johnbuck]

I already have UPS stock as part of my 401K match. I believe that might be class A also. It is rediclous to believe I am not interested in long term employment just because I would rather have cash then a few stock certificates. It is a financial decision.

Just trying to ask a simple question.... is there a way (am I allowed) to sell the class A stock they give me for my first time MIP incentive award?

 

[Catatonic]

Just trying to ask a simple question.... is there a way (am I allowed) to sell the class A stock they give me for my first time MIP incentive award?

Why didn't you ask that in the first post?

Yes you can sell.

 

[j13501]

...just because I would rather have cash then a few stock certificates. It is a financial decision.

There is something else you may want to consider.

It was hard for me to save money from my paycheck. I had kids, a mortgage, etc. and money was always tight. MIP is part of your salary, but I always liked the fact that you received your MIP as stock, because getting it was like "forced savings". I honestly think that if they spread it out during the year by adding it to my check, I never would have saved much.

The point is, if you do decide to sell the stock, make sure you invest all the proceeds, don't spend it. It may not seem like much now, but in 30 years, you'll be glad you did.

 

[TxRoadDawg]

may want to look at the tax ramifications also. uncle sam is a greedy sob

 

[upschuck]

For some reason, I thought you had to keep your MIP for a certain period of time(year or 2) before selling.

 

[Lineandinitial]

I don't see how it could be a good strategy to sell your fist year MIP. Half are RSU's and you can't touch them for 5 years. Also, 50% of a Sups monthly salary at a factor of .7 or .8 is not a lot of money. Plus there is the "Additional Incentive" to consider. That is "free money" just for hanging on it. Selling stock has always been frowned upon by UPS management. That hasn't changed and by not being what we used to call "a good partner" guarantees you'll never be considered for advancement.

Also, I know quite a few people that did not get MIP "Award" due to performance issues. They are taxable and show up on your W-2, but I would argue that it is "not part of your salary".

 

[UpstateNYUPSer(Ret)]

I am not management but I would think the last thing that you would want to do is to sell the stock. This may be "old school" but to me it would show that you have not bought in to the "Partner" concept.

 

[johnbuck]

Maybe I am just naive but I am failing to understand the difference between the stock I am receiving as a MIP award and the stock they give me as part of my 401K match? So this would not be the first UPS stock I own. While I usually keep some of the UPS stock in my 401K portfolio I also often trade it in for different assets in my 401K. I am far from a financial genius but it does not sound like the best idea for me to have a 401K portfolio made up of 50% of one stock no matter what company it is.

Honestly I am not sure what I am going do with the MIP award. Don't worry I don't plan on blowing it all on a fun week out on the town. I thought about putting it in my savings account for 'short term' savings but it might make more sense to leave it as stock as I would see better gains then the couple of cents of interest my savings account gets. I also have thrown around the idea of trading some of it in (maybe $500-750) for other stocks and playing the 'day trader' stock trading game. Its been something I've been wanting to do for a while and just haven't had the extra funds to do it.

Lastly, can they really look to see if I have sold my stock and would it hurt my chances of further advancement? Personally, that doesn't sound far and like I have stated above I have traded in my 401K match stock and it didn't prevent me from this promotion. I would eventually like to advance within the company.

 

[snowdaysonly]

My troll alert finally went off.

 

[Catatonic]

For some reason, I thought you had to keep your MIP for a certain period of time(year or 2) before selling.

That is the DESPP stock due to IRS regulations.
MIP stock is involuntary redirection of wages so it is available to sell immediately.

 

[Catatonic]

Maybe I am just naive but I am failing to understand the difference between the stock I am receiving as a MIP award and the stock they give me as part of my 401K match? So this would not be the first UPS stock I own. While I usually keep some of the UPS stock in my 401K portfolio I also often trade it in for different assets in my 401K. I am far from a financial genius but it does not sound like the best idea for me to have a 401K portfolio made up of 50% of one stock no matter what company it is.

Honestly I am not sure what I am going do with the MIP award. Don't worry I don't plan on blowing it all on a fun week out on the town. I thought about putting it in my savings account for 'short term' savings but it might make more sense to leave it as stock as I would see better gains then the couple of cents of interest my savings account gets. I also have thrown around the idea of trading some of it in (maybe $500-750) for other stocks and playing the 'day trader' stock trading game. Its been something I've been wanting to do for a while and just haven't had the extra funds to do it.

Lastly, can they really look to see if I have sold my stock and would it hurt my chances of further advancement? Personally, that doesn't sound far and like I have stated above I have traded in my 401K match stock and it didn't prevent me from this promotion. I would eventually like to advance within the company.

UPS cannot see within your 401k.
They can see what's in your UPS Stock account.
Life's not fair but hopefully far.

 

[SignificantOwner]

If you received cash would you buy UPS stock with it? If the answer is yes then keep the stock. If the answer is no sell as soon as it vests and invest in something you like better. Employee ownership is total lip service these days so don't even factor it in the equation.

 

[beentheredonethat]

I am not management but I would think the last thing that you would want to do is to sell the stock. This may be "old school" but to me it would show that you have not bought in to the "Partner" concept.

The "Partner" concept died a long time ago. I was a partner, then UPS decided that at the least managers and below are employees, possibly division managers too. UPS has been pretty clear with us that we are employees.

 

[Lineandinitial]

I know a lot of DM's that still think that selling your stock as a manager is a non no. Of course they are a bunch of amateurs and they fear their bosses will find out that they have no original thought and are merely trying to repeat what their sponsors did that promoted them!

 

[rod]

I am not management but I would think the last thing that you would want to do is to sell the stock. This may be "old school" but to me it would show that you have not bought in to the "Partner" concept.

Nice of you to point that out---most of the time its hard to tell.