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UPS Partners
You may have just fell off the turnip truck if you think...
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<blockquote data-quote="FracusBrown" data-source="post: 785695" data-attributes="member: 29360"><p>Industry standard compensation is the new goal. The expectations are above that of the industry. If you pay industry standard, then you must expect to receive industry standard and vise versa. The commitment and dedication will fade away as compensation falls. If you are not seeing that, then you are truly blind. </p><p> </p><p><em>Principal agent problem</em> is a well known issue among corporate America. The theory is that the board makes decisions that positively impact themselves at the expense of the employees and the company. For each dollar they are successful at raising share price they can multiply that amount times the number of shares owned. The short term goals of the board in their own self interest will likely have diastoles effects on he long term health of the company. Allowing the stock to go public the most clear example of this. The second most clear example is taking advantage of the management people simply because they can. It has ruined morale, dedication and commitment, three of the things that have made this company successful. </p><p> </p><p>Communities have taken a reduction. The UW contribution rate was changed to a flat 15% of employee contribution. this resulted in a reduction to the united way on the companies part. </p><p> </p><p> </p><p></p><p></p><p>The concept of thinking like an owner was significantly limited when the MIP formula was redesigned. In the old plan, management directly benefited by the profitability of the company. They also were directly negatively impacted by reductions in profit. I understand the concept, but it should be a two way street. </p><p> </p><p>Looking out for the entire organization used to include looking out for the so-called partners. </p><p> </p><p>Every <em>real </em>owner I know, takes a reduction in pay as a last resort and only when it is truly necessary. If it can be demonstrated that there is truly a need to reduce compensation, then it may be better supported. When the company is making record profits, growing, and making unnecessary acquisitions, this will be difficult to demonstrate to any sensible person.</p></blockquote><p></p>
[QUOTE="FracusBrown, post: 785695, member: 29360"] Industry standard compensation is the new goal. The expectations are above that of the industry. If you pay industry standard, then you must expect to receive industry standard and vise versa. The commitment and dedication will fade away as compensation falls. If you are not seeing that, then you are truly blind. [I]Principal agent problem[/I] is a well known issue among corporate America. The theory is that the board makes decisions that positively impact themselves at the expense of the employees and the company. For each dollar they are successful at raising share price they can multiply that amount times the number of shares owned. The short term goals of the board in their own self interest will likely have diastoles effects on he long term health of the company. Allowing the stock to go public the most clear example of this. The second most clear example is taking advantage of the management people simply because they can. It has ruined morale, dedication and commitment, three of the things that have made this company successful. Communities have taken a reduction. The UW contribution rate was changed to a flat 15% of employee contribution. this resulted in a reduction to the united way on the companies part. The concept of thinking like an owner was significantly limited when the MIP formula was redesigned. In the old plan, management directly benefited by the profitability of the company. They also were directly negatively impacted by reductions in profit. I understand the concept, but it should be a two way street. Looking out for the entire organization used to include looking out for the so-called partners. Every [I]real [/I]owner I know, takes a reduction in pay as a last resort and only when it is truly necessary. If it can be demonstrated that there is truly a need to reduce compensation, then it may be better supported. When the company is making record profits, growing, and making unnecessary acquisitions, this will be difficult to demonstrate to any sensible person. [/QUOTE]
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