brown1522821
New Member
The not so slow erosion of management compensation continued with the disappointing MIP factor this year. However, the compensation committee made sure the senior managers grade 020 and above (region level staff managers, district managers, and a slew of corporate managers) recieved a huge increase in total compensation this year while the rest of us took a 30% cut to our MIP award. This cut came in a year of record revenue and record profit.
The compensation committee and the management committee and the board of directors approved a new incentive plan for these grade 20's and up. Like the fuzzy metrics of the "new and improved" MIP plan, it is based on fuzzy metrics that allows the comp committee to set the payout at whatever level they want it to be.
Under this plan, the target for a grade 20 manager is a bonus of 50% of their base salary if the company hits these fuzzy goals. The range starts at 50% for 20's and goes up to 250% of salary for the senior managers on the mgt committee. Of course this is all on top of the regular MIP they already recieve. On to 2006.....
I work in corp. accounting/finance and so I can tell you factually that this new plan will payout at 110% of goal for 2006. That means each grade 20 manager will recieve a bonus of 55% of their base annual pay. District managers will get 110% of their base and so on.
The question I think we as UPSers and shareholders and all outside shareholders should be demanding an answer to is
"How can there be such a misalignment of goals for one incentive plan to take a 30% reduction while another plan pays out 110% of goal?" My opinion is this is just a way to cut costs by cutting MIP while still continuing to reward senior managers and in fact increase their compensation. I think we have lost our partnership culture and greed is rampant at 55 Glenlake. Voting in a new plan in the dark of night as they did with this plan and basically saying anyone below a grade 20 is not valued and then redistributing the incentive dollars through this new plan that rewards only the few while cutting the total comp for the managers in the field working harder and longer for less would have been unheard of in the UPS of Jim Casey.
The compensation committee and the management committee and the board of directors approved a new incentive plan for these grade 20's and up. Like the fuzzy metrics of the "new and improved" MIP plan, it is based on fuzzy metrics that allows the comp committee to set the payout at whatever level they want it to be.
Under this plan, the target for a grade 20 manager is a bonus of 50% of their base salary if the company hits these fuzzy goals. The range starts at 50% for 20's and goes up to 250% of salary for the senior managers on the mgt committee. Of course this is all on top of the regular MIP they already recieve. On to 2006.....
I work in corp. accounting/finance and so I can tell you factually that this new plan will payout at 110% of goal for 2006. That means each grade 20 manager will recieve a bonus of 55% of their base annual pay. District managers will get 110% of their base and so on.
The question I think we as UPSers and shareholders and all outside shareholders should be demanding an answer to is
"How can there be such a misalignment of goals for one incentive plan to take a 30% reduction while another plan pays out 110% of goal?" My opinion is this is just a way to cut costs by cutting MIP while still continuing to reward senior managers and in fact increase their compensation. I think we have lost our partnership culture and greed is rampant at 55 Glenlake. Voting in a new plan in the dark of night as they did with this plan and basically saying anyone below a grade 20 is not valued and then redistributing the incentive dollars through this new plan that rewards only the few while cutting the total comp for the managers in the field working harder and longer for less would have been unheard of in the UPS of Jim Casey.
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