WSJ: UPS Gives Top Brass a Raise Despite Missed Targets

WSJ: UPS Gives Top Brass a Raise Despite Missed Targets

March 14 2017

Excerpt:

Top executives at United Parcel Service Inc. took home higher compensation in 2016 even as the parcel carrier missed many of its performance targets.

Steven Hall, founder Steven Hall & Partners, a compensation consultant that wasn’t involved in UPS’s decision making, said companies may give such awards to keep executives from considering other offers, especially if stock options aren’t as valuable as originally expected.

“Sometimes you’ll look and find there’s been some lean times because the stock hasn’t moved up much,” Mr. Hall said. “So we’ll offer one-time retention awards and put a lot on the table so they don’t listen to a phone call” from a competitor.

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