By Dow Jones Business News, March 18, 2013, 07:15:00 PM EDT
--UPS says change in CEO's pension value down slightly
--Company cites record earnings despite challenges
--CEO's base salary up 2.6%
(Adds comments from UPS spokesman in third paragraph.)
By Bob Sechler
United Parcel Service Inc. ( UPS ) said Chief Executive Scott Davis received compensation valued at $12.1 million last
year, down about 7% from $13.1 million in 2011.
Mr. Davis was the only top UPS executive to receive a reduction in total compensation last year, according to the
company's proxy statement filed with the Securities and Exchange Commission late Monday.
A UPS spokesman said the trend wasn't intentional. Instead, he said it had to do mainly with changes in pension
values, in which Mr. Davis's slipped slightly while the other top executives saw sizable increases.
Mr. Davis's salary rose 2.6% to about $1.05 million. But the value of his stock awards fell by $740,000 to $8.7
million, and the value of his award under a non-equity incentive plan slipped about $140,000 to $426,000.
A compensation committee made up of UPS board members credited the company for succeeding "in a year filed with
opportunities and challenges." It noted UPS generated recorded adjusted earnings per share "despite the economic
paralysis created by the European debt crisis and the fiscal cliff in the U.S."
Still, it also expressed dismay at the company's failed bid to acquire Dutch parcel-delivery company TNT Express N.V.
(TNTEY, TNTE.AE), although it reiterated UPS is "moving on" from the setback and will continue to pursue growth both
organically and through acquisitions.
"It would be an understatement to say we were disappointed by the decision of the European Commission to block our bid
to acquire TNT Express," the proxy stated.
Write to Bob Sechler at firstname.lastname@example.org
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