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UPS Partners
MIP Change
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<blockquote data-quote="pretzel_man" data-source="post: 54131"><p>Isdrone: </p><p> </p><p>Its very clear to me how this helps management. While others may not agree, I am stating my personal beliefs. </p><p> </p><p>First, yes I believe MIP will be less than its has been. Not $300M less however. UPS gave out $750M in MIP this year. Even if MIP were to drop by 20%, the overall liability would reduce by $150M. </p><p> </p><p>I recognize that 1/2 of this is deferred payment, but am ignoring that since its not relevent in the long term. </p><p> </p><p>In my opinion, the key to why this is good is in the company focus on what's important. What's important is not keeping profits steady. Its growth. </p><p> </p><p>The six elements are the same elements that Wall St. thinks is important. If those six elements grow so will stock. </p><p> </p><p>From my perspective, if management is focused, the short term reduction in MIP will be much more offset in stock growth. Said differently, if I got more MIP every year, and the stock did not grow, we're much, much worse off. </p><p> </p><p>If the presentation you were given tried to explain that the tax advantages would offset any possible loss they missed the mark. </p><p> </p><p>I gave the presentation to many people and explained that its a short term loss trying to enhance long term gain. </p><p> </p><p>Again, I'm personally in favor of the change because I think its good for UPS and management in the long term and the long term is what matters to me... </p><p> </p><p>P-Man</p></blockquote><p></p>
[QUOTE="pretzel_man, post: 54131"] Isdrone: Its very clear to me how this helps management. While others may not agree, I am stating my personal beliefs. First, yes I believe MIP will be less than its has been. Not $300M less however. UPS gave out $750M in MIP this year. Even if MIP were to drop by 20%, the overall liability would reduce by $150M. I recognize that 1/2 of this is deferred payment, but am ignoring that since its not relevent in the long term. In my opinion, the key to why this is good is in the company focus on what's important. What's important is not keeping profits steady. Its growth. The six elements are the same elements that Wall St. thinks is important. If those six elements grow so will stock. From my perspective, if management is focused, the short term reduction in MIP will be much more offset in stock growth. Said differently, if I got more MIP every year, and the stock did not grow, we're much, much worse off. If the presentation you were given tried to explain that the tax advantages would offset any possible loss they missed the mark. I gave the presentation to many people and explained that its a short term loss trying to enhance long term gain. Again, I'm personally in favor of the change because I think its good for UPS and management in the long term and the long term is what matters to me... P-Man [/QUOTE]
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