Discussion in 'UPS Partners' started by upsandDOWNS, Oct 5, 2010.
Any rumors yet on MIP #
Yep ... lots of rumors
Rumor has it that all the targets were hit so the factor will be the target amount of 2.0. Under the old 15% of profit formula, the factor would be much higher.
MIP is going to be nice this year. We made many gains and the score cards look good.
MIP around 2.65.........If its much less than that there will be a mass exodus of any supervisor holding a marketable degree due to lack of promotions, raises lower than inflation, poor pensions, poor medical benefits...etc etc etc.......
Your assumption is that there is a correlation between the two?
I think 2.65 to 2.85 is about right....And yes I think corporate knows it is time to show a little luv to the partnership legacy.....
I agree and hope you are right.
I don't know that the Board will let them though ... time will tell.
There may be some degree of correlation, but it's not directly correlated. The pay out is subjective. The old formula was directly correlated to profit.
I suspect if all the targets are met the factor will be 2.0. For each target not met the factor is reduced by an equal percentage with the minimum factor being 1. No targets = 1. All targets met = 2. half of the targets met = 1.5.
The real question is do they establish the payout first, then base which targets were met upon how much they intend to spend or is it the other way around? Considering the MIP expense is planned in advance, it's likely the the amount is known and established in advance regardless of performance or targets met.
Please tell me you arent still sticking around at UPS hoping the MIP will be that high? The only way UPS will adjust how its treating people is if all those people DO leave the company. Kinda a catch 22 there obviously since you no longer care how things are after you leave.
I think you are accurate right there. The board will never allow MIP to be higher than planned in terms of cost. It'll certainly allow it to be lower though. Thats all money that could be reinvested or returned to the stock holders. All MIP does is dilute the stockholders shares. If the board of directors primary responsibility is to the stock holders, (and btw, it is just like at all public companies) then MIP will forever be doomed to being "as little as possible".
Anybody ever wonder why the stock always seems to go up just before they announce the MIP......
I think last year was the only time this did not occur.
No, we never wondered but we did notice.
Check the Call Options http://finance.yahoo.com/q?s=ups
for a gauge of what the financial industry is thinking....
I'm sure it wasn't because of the We Love Logistics campaign.
What is MIP?
Management Incentive Plan - Part of the total compensation package for Full-time UPS management
My guess is 2.49.
Which is all any of us can do - guess.
There is no rhyme or logic to the actual MIP factor anymore.
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