Discussion in 'UPS Partners' started by brownISer, Oct 23, 2006.
MIP factor not too good this year---1.6
I have a tough time believing this. 1
it's a fact, Jack!
Can someone help me understand this… The most recent 4 quarters (2006 Q3, 2006 Q2, 2006 Q1, and 2005 Q4) equaled $6.3 billion in profit. The 4 quarters before that (2005 Q3, 2005 Q2, 2005 Q1, and 2004 Q4) equaled $5.3 billion in profit. That is an increase of $1 billion in profit (18.8% increase). But the MIP is lowered by 33%???????
I can also verify that 1.6 is the MIP factor.
ABANDON SHIP!!! This is one of the last benefits that keep people coming to UPS and trying to get into management! Next year......less, the year after.....less, the next year.....none. I for one am going to be posting my resume on Monster in the near future! Not getting a good feeling here.
I know UPS is famous for it's own language, but what is MIP?
management incentive program I think.
A well earned 1.6. My annual salary has regressed to pre-2000 levels... Bet Mikes Salary Goes up 7% this year...
To the public and analyst we say record profits all looks good. Internally we say "sorry your management incentive is so poor, we had an awful year and the future looks bleak".
You can't treat your management employees correctly or increase stock value? What is your measure of success?
Is this an integrity problem? Character? Uncle Jim's turning in his graves... Benefit the few at the expense of the many... Nice job, we are just like every other publicly traded company...
"I can't hear what your saying, your actions are speaking too loudly.... "
MIP stands for management insentive program.
Since last year when UPS mentioned they were going to change the program and that the board of directors was going announce the MIP factor. I new then we were in trouble. How can a company make record profits in 2006 and state that we are not doing well and give us an MIP factor of 1.6. It's proves one thing for certian, the people in Atlanta don't know what they are doing. The stock took a hit a few months ago but it has since rebounded. It seems every little even is followed by UPS over reacting and causing more problems. Setting the MIP to 1.6 will only cause more harm then anything else. Are you as a UPS partner motivated after a 1.6 announcement? Maybe motivated to find another job....
I heard a rumor that if MIP was calculated the old way it would have come out around 2.8.....
It doesn't matter how it was calculated this year. What matters is who is getting the 17% annual increases and the LTIP (Long Term Incentive) It's the little guys that do the work and then feel the pain.
So let's think about this..... MIP factor goes down. My benefits will cost me an additional $3,000 out of pocket next year. Sounds like a good deal. I'm excited, hope everyone else is...
Just remember that we didn't meet three of the six elements this year. Though they are not weighted, it appears that the three that we missed did have a great impact on MIP. In addition, when they made the change last year, we made 5 out of six elements. Start looking at the five elements for 2007 and get out there and get the volume. Maybe our profit margin will be better than 9.8%
Is LTIP the ownership incentive? If so, today's MIP factor will not help the little guy reach the ownership incentive any faster.
Mr brownalltheway. the real reason that we are getting the shortend is due to the greed created by the board that decided to go public in the first place. This led to a mass exodus of experience from our management ranks. We are now left with a junior inexperienced group that is just not competent enough to increase the profit margin. The 1.6 and the new payout structure will definately create another mass exodus right before Xmas, and we will be in even worse shape next year.
This is the drivel that was rolled out to justify the factor. I don't buy into it and here's why. The company just had record profits and the MIP went down. What happens when the economy slows? What chance will there be to make any of the goals? What would MIP be in that scenario?
Generating volume is not raising our margins. Volume has grown 6.6% YTD. Costs are rising too fast. (Perhaps a motivator for the low MIP?) Operating expenses are up 14.9% while revenue is up 14%.
SCS and freight are anchors around UPS' neck right now. Stoffel and his fat colletion of staff managers need to look in the collective mirror as they all filter back to the UPS staff bench as SCS downsizes. Of course, they will receive extra compensation this year for their stellar performance; 45.6% increase in revenue generating a 97.3% loss in profits. (Imagine being a center manager with those kind of numbers. Something tells me an increase in compensation wouldn't be in your future.)
The money saved with this factor is pretty large. It's real money that the company earned and didn't pay out. Remember, profits are higher than last year. That amounts to ~20% of this past quarter's earnings. What will be done with that money?
screw your elements, any incentive to stay is being flushed down the toilet by managers who made their million prior to going public
Remember the MIP is based on the 6 initiatives set at the beginning of the year. In 2006, we made only 3 of the 6 objectives; 1.6. In 2005 we made 5 of the 6 objectives; 2.41. That's the reason.
This is a recording.... ;-}
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