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This excerpt taken from the UPS DEF 14A filed Mar 13, 2009. Overview
The
Link Between UPS Culture and Compensation
UPS founder Jim Casey once said that good management is the
ability to make people feel that you and they are the
company — not merely employees. The idea of management
by partnership, and Jim’s belief that determined people
working together can do anything, are two of many basic
principles that have allowed UPS to grow and reinvent itself for
more than 100 years. The management philosophy Jim
expressed in the early years of operation grew into a culture
based on integrity, honesty and trust in each other. Our
practices, including compensation programs, reflect an early
understanding that continued success was not only dependent on
our innovative service, but also on the development and
well-being of the UPS team. UPS leaders will consistently point
to three practices, above all others, which have contributed to
our sustained long-term growth:
UPS reflects these principles in our compensation programs by
rewarding ownership, performance and long-term commitment to the
organization. UPS career development and succession planning
programs strengthen the partnership by offering rotational
assignments within and across UPS business units, through
internal and external education, by identification of future
career paths and by encouraging individual responsibility for
self-development.
Business
Review
At the beginning of 2008, economists forecasted slow but growing
U.S. gross domestic product and industrial production. Few
predicted that the U.S. economic environment would severely
deteriorate throughout the year. Conditions worsened
significantly in the second half of the year, as the economic
weakness spread globally. As a result of the difficult economic
environment, performance in 2008 did not meet our plans or
expectations set out in the beginning of the year. Although our
revenue, operating profit and earnings per share were down for
the year, we believe the UPS management team performed well
under such trying circumstances. Our U.S. operations team
continued to adjust the network throughout 2008, as package
volume deteriorated. In our international business, export
volume per day increased in 2008 as we benefitted from our
balanced global network. The supply chain and freight segment
improved its operating margin in 2008. We continued to generate
strong cash flow during the year, and ended 2008 with an
industry-leading small package operating margin.
We continue to anticipate a challenging worldwide economic
environment in 2009. Our management team is making the difficult
decisions necessary to ensure that we remain a strong company
throughout the downturn and will be well-positioned when global
markets begin to recover. We are putting the necessary plans in
place to manage our costs while ensuring that we maintain high
quality service to our customers.
Executive
Compensation Strategy
While the UPS executive compensation programs are designed to
fairly compensate our team for the work they perform on behalf
of the company, UPS realized long ago that the dollar value of
our programs was only one element considered by executives when
choosing to stay with the organization. Working in a satisfying,
challenging environment with a team committed to each other and
the company is an intangible but key benefit that has been a
cornerstone of our success. Unlike many of our peers, our
executive compensation program does not target total
compensation at a particular percentile or market level.
Instead, we believe that if we offer reasonable pay and benefits
to our executives, along with a culture and work environment
that encourages innovation, supports diverse ideas and
recognizes individual contributions, they will choose to stay
for the long-term.
Table of Contents
The UPS executive compensation program is designed to:
The UPS Management Committee, comprised of all of our executive
officers, is made up mainly of employees who have spent
virtually their entire careers with UPS. Many members of our
Management Committee have had wide-ranging opportunities at UPS
due to the variety of assignments and advancement opportunities
available across business units, functions and geographies.
These opportunities provide extensive career development and
build loyalty, which reinforces our strong corporate culture.
Ultimately these attributes provide a greater return to our
shareowners. However, the high quality of our Management
Committee would not preclude looking outside UPS to fill an
executive position if it was in the best interest of UPS and its
shareowners.
This excerpt taken from the UPS 10-K filed Feb 27, 2009. United Parcel Service, Inc. (“UPS”) is the world’s largest package delivery company, a leader in the U.S. less-than-truckload industry, and a global leader in supply chain management. We were founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, we deliver packages each business day for 1.8 million shipping customers to 6.1 million consignees in over 200 countries and territories. In 2008, we delivered an average of 15.5 million pieces per day worldwide, or a total of 3.92 billion packages. Total revenue in 2008 was $51.5 billion. Our primary business is the time-definite delivery of packages and documents worldwide. In recent years, we have extended our service portfolio to include global supply chain services and less-than-truckload transportation, primarily in the U.S. We report our operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations.
Transportation and Infrastructure. We operate a ground fleet of approximately 107,000 vehicles, which reaches all business and residential zip codes in the contiguous U.S. We also operate an air fleet of about 570 aircraft, the ninth largest airline in the world. Our primary air hub is in Louisville, KY. Regional air hubs are located in Columbia, SC; Dallas, TX; Hartford, CT; Ontario, CA; Philadelphia, PA; and Rockford, IL. Our largest international air hub is in Cologne, Germany, with other regional international hubs in Miami, FL; Canada; Hong Kong; Singapore; Taiwan; China; and the Philippines. We have established a global transportation infrastructure and a comprehensive portfolio of services. We support these services with advanced operational and customer-facing technology. Our supply chain solutions enable customers’ inventory to move more effectively. As a consequence, they can concentrate on their own core competencies. Outlook. We believe that the following trends will allow us to continue to grow our business over the long term:
1
Table of ContentsOur vision for the future is to synchronize the world of commerce, addressing the complexities of our customers’ supply chain needs. Our goal is to develop business solutions that create value and competitive advantages for our customers, enabling them to achieve supply chain efficiencies, better customer service for their customers and improved cash flow. This excerpt taken from the UPS DEF 14A filed Mar 17, 2008. Overview
The
Link Between UPS Culture and Compensation
UPS founder Jim Casey once said that good management is the
ability to make people feel that you and they are the
company — not merely employees. The idea of management
by partnership, and Jim’s belief that determined people
working together can do anything, are two of many basic
principles that have allowed UPS to grow and reinvent itself for
more than 100 years. The management philosophy Jim
expressed in the early years of operation grew into a culture
based on integrity, honesty and trust in each other. Our
practices, including compensation programs, reflect an early
understanding that continued success was not only dependent on
our innovative service, but also on the development and
well-being of the UPS team. UPS leaders will consistently point
to three practices, above all others, which have contributed to
our sustained growth:
We reflect these principles in our compensation programs by
rewarding ownership, performance and long-term commitment to the
organization. UPS career development and succession planning
programs strengthen the partnership by offering rotational
assignments within and across UPS business units, through
internal and external education, by identification of future
career paths and by encouraging individual responsibility for
self-development.
Our
Executive Compensation Strategy
While our programs are designed to provide financial security
for our team, UPS realized long ago that the dollar value of our
programs was only one element considered by executives when
choosing to stay with an organization. Working in a satisfying,
challenging environment with a team committed to each other and
the company is an intangible but key benefit that has been a
cornerstone of our success. Unlike many of our peers, our
executive compensation program does not use benchmarking to
target total compensation at a particular percentile or market
level. Instead, we believe that if we offer reasonable pay and
benefits to our executives, along with a culture and work
environment that encourages innovation, supports diverse ideas,
and recognizes individual contributions, they will choose to
stay for the long-term.
Our executive compensation program is designed to:
The UPS Management Committee, comprised of all of our executive
officers, is made up mainly of employees who have spent
virtually their entire careers with us. Many members of our
Management Committee have had wide-ranging opportunities at UPS
due to the variety of assignments and advancement opportunities
available across business units, functions and geographies. We
believe the opportunity for career development and advancement
within UPS builds loyalty, reinforces our strong corporate
culture and reduces training and recruiting expenses. Ultimately
these attributes provide a greater return to our shareowners.
However, the high quality of our Management Committee would not
preclude looking outside UPS to fill an executive position if it
was in the best interest of UPS and its shareowners.
These excerpts taken from the UPS 10-K filed Feb 29, 2008. Overview United Parcel Service, Inc. (“UPS”) is the world’s largest package delivery company, a leader in the U.S. less-than-truckload industry, and a global leader in supply chain management. We were founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, we deliver packages each business day for 1.8 million shipping customers to 6.1 million consignees in over 200 countries and territories. In 2007, we delivered an average of 15.75 million pieces per day worldwide, or a total of 3.97 billion packages. Total revenue in 2007 was $49.7 billion. Our primary business is the time-definite delivery of packages and documents worldwide. In recent years, we have extended our service portfolio to include less-than-truckload transportation, primarily in the U.S., and supply chain services. We report our operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations.
Transportation and Infrastructure. We operate a ground fleet approximately 100,000 vehicles, which reaches all business and residential zip codes in the contiguous U.S. We also operate an air fleet of about 600 aircraft, the ninth largest airline in the world. Our primary air hub is in Louisville, KY. Regional air hubs are located in Columbia, SC; Dallas, TX; Hartford, CT; Ontario, CA; Philadelphia, PA; and Rockford, IL. Our largest international air hub is in Cologne, Germany, with other regional international hubs in Hong Kong, Singapore, Taiwan, Miami, FL and Pampanga, Philippines. We have established a global transportation infrastructure and a comprehensive portfolio of services. We support these services with advanced operational and customer-facing technology. Our supply chain solutions enable customers’ inventory to move more effectively. As a consequence, they can concentrate on their own core competencies. Outlook. We believe that the following trends will allow us to continue to grow our business:
1
Our vision for the future is to synchronize the world of commerce, addressing the complexities of our customers’ supply chain needs. Our goal is to develop business solutions that create value and competitive advantages for our customers, enabling them to achieve supply chain efficiencies, better customer service for their customers and improved cash flow. Overview a global leader in supply chain management. We were founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, we deliver packages each business day for 1.8 million shipping customers to 6.1 million consignees in over 200 countries and territories. In 2007, we delivered an average of 15.75 million pieces per day worldwide, or a total of 3.97 billion packages. Total revenue in 2007 was $49.7 billion. include less-than-truckload transportation, primarily in the U.S., and supply chain services. We report our operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations.
Transportation and Infrastructure. We operate a ground fleet We have established a global transportation infrastructure and a comprehensive portfolio of Outlook. We believe that the following trends will allow us to continue to grow our business:
1 Our vision for the future is to synchronize the world of commerce, addressing the complexities of This excerpt taken from the UPS DEF 14A filed Mar 19, 2007. Overview
The
Link Between UPS Philosophy and Compensation
UPS founder Jim Casey once said that good management is the
ability to make people feel that you and they are the
company — not merely employees of it. The idea of
management by partnership, and Jim’s belief that determined
people working together can do anything are two of many basic
principles that have allowed UPS to grow and reinvent itself for
more than 99 years. The management philosophy Jim expressed
in the early years of operation grew into a culture based on
integrity, honesty and trust in each other. Our practices,
including compensation programs, reflect an early understanding
that continued success was not only dependent on our innovative
service, but also on the development and well-being of the UPS
team. UPS leaders will consistently point to three practices,
above all others, which have contributed to our sustained growth:
We reflect these principles in our compensation programs by
rewarding ownership, performance and long-term commitment to the
organization. UPS career development and succession planning
programs strengthen the partnership by offering rotational
assignments within and across UPS business units, through
internal and external education, by identification of future
career paths and by encouraging individual responsibility for
self-development.
Career
Opportunities Have Grown Along with the Growth of the
Organization
The UPS management team, including the Named Executive Officers
(“NEOs”), is comprised mainly of employees who have
spent virtually their entire careers with us, and many would say
they have had the good fortune of having more than one career at
UPS due to the variety of assignments and advancement
opportunities available across business units, functions and
geographies. UPS has grown to include small package delivery;
supply chain management; financial services; information
management; freight transportation and delivery; consolidated
mail services; and the operation of one of the largest airlines
in the world. Our growth has resulted in greater career
opportunities available to our best employees.
We believe the opportunity for career development and
advancement within UPS builds loyalty, reinforces our strong
corporate culture and reduces training and recruiting expenses.
Ultimately these attributes provide a greater return to our
shareowners. However, the high quality of our management team
would not preclude looking outside UPS to fill an executive
position if it was in the best interest of UPS and its
shareowners.
This excerpt taken from the UPS 10-K filed Mar 1, 2007. Overview
United Parcel Service, Inc. (“UPS”) is the world’s largest package delivery company and a global leader in supply chain management. We were founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, we deliver packages each business day for 1.8 million shipping customers to 6.1 million consignees in over 200 countries and territories. In 2006, we delivered an average of 15.6 million pieces per day worldwide. In addition, our supply chain solutions capabilities are available to clients in over 175 countries and territories.
Total revenue in 2006 was over $47.5 billion. Although our primary business is the time-definite delivery of packages and documents, we have extended our capabilities in recent years to encompass the broader spectrum of services known as supply chain solutions, such as freight forwarding, customs brokerage, fulfillment, returns, financial transactions and even repairs. We are also a leading provider of less-than-truckload (“LTL”) transportation services. We have established a global transportation infrastructure and a comprehensive portfolio of services and integrated solutions. We support these services with advanced operational and customer-facing technology. Our supply chain solutions provide visibility into moving inventory across the global supply chain.
We believe the future is bright for this industry, for the following reasons:
Our vision for the future is to synchronize the world of commerce, managing the complexities of our customers’ supply chain needs. Our goal is to develop business solutions that create value and competitive advantages for any size customers through product differentiation, better customer service and improved cash flow.
This excerpt taken from the UPS 10-K filed Mar 14, 2006. Overview
UPS is the world’s largest package delivery company and a global leader in supply chain solutions. We were founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, we deliver packages each business day for 1.8 million shipping customers to 6.1 million consignees in over 200 countries and territories. In 2005, we delivered an average of more than 14.7 million pieces per day worldwide. In addition, our supply chain solutions capabilities are available to clients in 186 countries and territories.
Total revenue in 2005 was over $42.5 billion. Although our primary business is the time-definite delivery of packages and documents, we have extended our capabilities in recent years to encompass the broader spectrum of services known as supply chain solutions, such as freight forwarding, customs brokerage, fulfillment, returns, financial transactions and even repairs. We are also a leading provider of less-than-truckload (“LTL”) transportation services. We have established a global transportation infrastructure and a comprehensive portfolio of services and integrated solutions. We support these services with advanced operational and customer-facing technology. Our supply chain solutions provide visibility into moving inventory across the global supply chain.
We believe the future is bright for this industry.
Our vision for the future is to synchronize the world of commerce, managing the complexities of our customers’ supply chain needs. Our goal is to develop business solutions that create value and competitive advantages for all size customers through product differentiation, market penetration, better customer service and improved cash flow.
This excerpt taken from the UPS 10-K filed Mar 14, 2005. Overview
UPS is the world’s largest package delivery company and a global leader in supply chain solutions. We were founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, we deliver packages each business day for 1.8 million shipping customers to 6.1 million consignees in over 200 countries and territories. In 2004, we delivered an average of more than 14.1 million pieces per day worldwide. In addition, our supply chain solutions capabilities are available to clients in 175 countries.
Total revenue in 2004 was over $36.5 billion. Although our primary business is the time-definite delivery of packages and documents, we have extended our capabilities in recent years to encompass the broader spectrum of services known as supply chain solutions, such as freight forwarding, customs brokerage, fulfillment, returns, financial transactions and even repairs. We have established a global transportation infrastructure and a comprehensive portfolio of services and integrated solutions. We support these services with advanced operational and customer-facing technology. Our supply chain solutions provide visibility into moving inventory across the global supply chain.
We believe the future is bright for this industry.
Our vision for the future is to synchronize the world of commerce, managing the complexities of our customers’ supply chain needs. Our goal is to develop business solutions for all size customers that create value and competitive advantages for them through product differentiation, market penetration, better customer service and improved cash flow.
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