UPS CEO Salary – President Income and Earnings

Curious about the salary of a UPS CEO? In this article, we will delve into the compensation of UPS CEO Carol Tomé and explore the various components that make up her earnings. From salary to stock awards, we will provide you with a comprehensive breakdown of her income. Additionally, we will compare her compensation to that of other executives at UPS and examine how it aligns with the company’s performance. Let’s dive in and explore the world of CEO salaries at UPS.

Key Takeaways:

UPS CEO Carol Tomé’s total compensation in 2022 was nearly $19 million, a decline from the previous year.
The majority of Carol Tomé’s compensation comes from stock awards, stock option awards, and incentive plan compensation.
Other executives at UPS, such as the CFO, also experienced a decline in their compensation.
Some shareholders have raised concerns and submitted proposals regarding UPS’s climate change strategy and reproductive rights policies.
Carol Tomé became the CEO of UPS in June 2020 and has a tenure of approximately 3.6 years.

Carol Tomé’s Compensation Breakdown

Carol Tomé, the CEO of UPS, received a comprehensive compensation package in 2022. Let’s take a closer look at the breakdown of her compensation:

Component
Amount

Stock Awards
$15 million

Stock Option Awards
$1.2 million

Incentive Plan Compensation
$1 million

Salary
$1.5 million

The majority of Carol Tomé’s compensation came from stock awards, totaling $15 million. Stock option awards contributed an additional $1.2 million, while incentive plan compensation accounted for $1 million. Her base salary for the year was approximately $1.5 million.

It is important to note that the value of stock awards is estimated and can vary based on UPS’s stock price fluctuations over time. These awards are a representation of the CEO’s long-term commitment to the company’s success and are tied to the overall performance of UPS.

The company’s long-term equity incentive program awards are based on key performance indicators such as earnings per share growth and adjusted free cash flow. These performance-based incentives encourage executives to drive sustainable growth and shareholder value.

Stay tuned as we delve deeper into the compensation details of other UPS executives and compare their remunerations in the upcoming sections.

Comparison to Other Executives

While Carol Tomé experienced a decline in compensation in 2022, she was not alone in this regard among UPS executives. Brian Newman, UPS’s Chief Financial Officer, also saw a decrease in his total compensation from $15.3 million to $7.2 million.

This decline in compensation can be attributed to the company’s financial performance, which reported a decrease in net income and earnings per share for 2022. It demonstrates UPS’s commitment to aligning executive compensation with the overall performance of the company.

It is worth noting that the compensation of other executives at UPS also experienced a decline. This adjustment reflects the challenging operating environment and the need for cost management across the organization.

Comparing the compensation of UPS’s CEO and CFO provides insights into the company’s executive pay structure. While Carol Tomé’s total compensation was nearly $19 million, Brian Newman’s compensation was $7.2 million, highlighting the broader compensation landscape within UPS.

“The compensation of UPS executives, including both the CEO and CFO, is subject to evaluation and adjustment based on company performance and market dynamics. It is essential to strike the right balance between attracting top talent and ensuring alignment with shareholder interests.”

As UPS strives to maintain a competitive edge in the industry, monitoring and evaluating executive compensation are crucial aspects of its corporate governance practices.

The table below provides a comparison of compensation between UPS executives:

Name
Position
Total Compensation (2022)

Carol Tomé
CEO
$19 million

Brian Newman
CFO
$7.2 million

Shareholder Proposals and Concerns

As the annual meeting approaches, UPS shareholders have voiced their concerns and submitted proposals regarding various aspects of the company’s operations. These proposals highlight the shareholders’ desire for UPS to address critical issues such as climate change, diversity and inclusion, and reproductive rights. While these proposals aim to drive positive change and align the company’s practices with evolving societal expectations, UPS has recommended voting against them for several reasons.

One of the shareholder proposals asks for a comprehensive report on UPS’s climate change strategy, including greenhouse gas emissions reduction targets. This proposal reflects growing investor concern about the environmental impact of businesses and emphasizes the need for sustainable practices within the transportation industry.

Another proposal focuses on diversity and inclusion efforts at UPS. Shareholders are requesting a report detailing the company’s initiatives to promote diversity across its workforce, management, and board composition. This proposal highlights the growing awareness of the importance of diversity and inclusion in fostering innovation, enhancing decision-making processes, and representing the communities served by UPS.

Additionally, some shareholders have raised concerns regarding the impact of state policies restricting reproductive rights. These shareholders propose a report that examines how such policies could affect UPS’s employees, their families, and the communities in which the company operates. With reproductive rights being a highly debated and sensitive issue, this proposal aims to shed light on the potential consequences and encourage transparency and accountability.

While these proposals address important social and environmental considerations, UPS advises shareholders to vote against them. The company’s justification for this recommendation is based on various factors, including the broad framing of the proposals and the focus of UPS’s regulatory concerns. By pushing back against these proposals, UPS aims to maintain its focus on delivering efficient and reliable shipping services while addressing stakeholders’ interests through alternative means.

It is important to note that the shareholder proposals and concerns highlight the evolving expectations placed on corporations to integrate environmental, social, and governance (ESG) factors into their operations. These proposals demonstrate shareholders’ desire for greater transparency, accountability, and alignment between UPS’s practices and societal values.

UPS recognizes the importance of engaging with shareholders and continually evolving its practices to meet these expectations. The company acknowledges the need for ongoing dialogue and collaboration as it strives to balance stakeholder interests, drive sustainable growth, and deliver long-term value.

Total Compensation of Other UPS Executives

Along with Carol Tomé, other top executives at UPS also receive substantial compensation. Here’s a breakdown of the total compensation for some key UPS executives in 2022:

Executive
Position
Total Compensation (2022)

Nando Cesarone
President U.S. and UPS Airline
$5.94 million

Kate Gutmann
President International, Healthcare and Supply Chain Solutions
$6.22 million

Brian Newman
CFO
$7.19 million

Bala Subramanian
Chief Digital and Technology Officer
$7.51 million

The compensation provided to these executives highlights the importance and value they bring to the company. UPS believes that competitive compensation is necessary to attract and retain top talent, and these packages demonstrate the company’s commitment to rewarding its key leaders.

To provide a proper context of the compensation packages above, it’s important to consider the scope of responsibility and the executive’s impact on company performance. Each executive plays a crucial role in managing different aspects of UPS’s operations and strategic initiatives.

Now, let’s take a closer look at the key responsibilities of each executive and their contributions to UPS:

Nando Cesarone, President U.S. and UPS Airline

Nando Cesarone oversees UPS’s U.S. operations, including the company’s ground and airline networks. His responsibilities include managing the delivery network, ensuring efficient operations, and driving customer satisfaction. Under his leadership, UPS has continued to expand its capabilities and enhance its service offerings in the U.S.

Kate Gutmann, President International, Healthcare and Supply Chain Solutions

Kate Gutmann leads UPS’s international operations, healthcare logistics, and supply chain solutions. She plays a vital role in expanding UPS’s global footprint, developing innovative solutions for the healthcare industry, and providing end-to-end supply chain services to customers worldwide.

Brian Newman, CFO

Brian Newman serves as UPS’s Chief Financial Officer, overseeing financial operations, strategy, and planning. He plays a critical role in managing UPS’s financial performance, ensuring financial stability and growth, and providing strategic guidance to support the company’s long-term objectives.

Bala Subramanian, Chief Digital and Technology Officer

Bala Subramanian leads UPS’s digital and technology initiatives, driving innovation and digital transformation across the company. He is responsible for enhancing UPS’s technology capabilities, optimizing operations through automation and data analytics, and ensuring a seamless customer experience in the digital age.

The image above showcases the UPS executives mentioned and their key roles in the organization.

With their extensive experience and expertise, these executives play a crucial role in shaping UPS’s strategic direction, driving innovation, and delivering exceptional service to customers. The compensation they receive reflects their contributions to the company’s success and their significant responsibilities in leading UPS into the future.

CEO Pay Ratio and Board of Directors

While the CEO pay ratio at UPS is not explicitly stated in the provided data, it is evident that the CEO’s total compensation is significantly higher than the average worker’s salary. This disparity between executive pay and employee wages has been a subject of debate and scrutiny in recent years.

It is worth noting that the composition of the UPS board of directors is not provided in detail. However, the mention of shareholder proposals related to board-related issues, such as reducing the voting power of UPS class A stock, indicates that there is ongoing discussion and interest in corporate governance and accountability.

Without comprehensive information on the UPS CEO pay ratio and the exact composition of the board of directors, it is challenging to delve into further analysis and commentary regarding these aspects. However, it is essential for stakeholders and investors to understand the relationship between executive compensation and worker wages, as well as the expertise and diversity present within the board of directors.

In order to gain a more comprehensive understanding of the UPS CEO pay ratio and the dynamics of the board of directors, further information and transparency would be required. This would enable investors and stakeholders to make informed decisions and engage in discussions regarding executive compensation and corporate governance.

UPS CEO Pay Ratio
Board of Directors

No available data
No available data

Carol Tome’s Tenure and Ownership

Carol Tomé took over as the CEO of UPS in June 2020, and she has held the position for approximately 3.6 years. Her tenure has been marked by strategic decision-making and a strong focus on driving the company’s growth and profitability.

Not only has Carol Tomé been instrumental in leading UPS, but she also has a significant ownership stake in the company. She directly owns approximately 0.015% of UPS’s shares, which amounts to around $26.1 million in value. This demonstrates her strong belief in the company’s potential and aligns her interests with those of the shareholders.

Carol Tomé’s tenure as UPS CEO falls within the average tenure range for the management team at UPS, which is around 4 years. This indicates that she has successfully navigated the challenges of the role and made a positive impact on the company’s performance during her time as CEO.

When it comes to the board of directors, the average tenure is even longer at 6.4 years. This signifies stability and continuity in the company’s leadership, ensuring a consistent strategic direction and decision-making process.

Overall, Carol Tomé’s tenure as UPS CEO and her significant share ownership reflect her deep commitment to the company’s success and her dedication to creating long-term value for both UPS and its shareholders.

Carol Tome’s Compensation History

Carol Tomé’s compensation as the CEO of UPS has seen fluctuations over the years, reflecting the company’s financial performance. In 2022, her total compensation amounted to nearly $19 million, a decrease from the previous year’s $27.6 million. The highest reported compensation was $28 million in 2021. These changes in compensation align with UPS’s financial results and strategic objectives.

Carol Tomé’s compensation history highlights the dynamic nature of executive pay, which is influenced by numerous factors, including company performance, market conditions, and industry trends. As the leader of a global logistics company like UPS, Tomé’s compensation is based on various components, such as salary, stock awards, stock option awards, and incentive plan compensation.

Breakdown of Carol Tome’s Compensation Components

Year
Salary
Stock Awards
Stock Option Awards
Incentive Plan Compensation

2022
$1.5 million
$15 million
$1.2 million
$1 million

2021
$1.5 million
$25 million
$1.5 million
$0.6 million

2020
$1.2 million
$22 million
$1.3 million
$0.8 million

As shown in the table above, the majority of Carol Tomé’s compensation has been derived from stock awards, demonstrating the importance of long-term performance and shareholders’ value creation. The value of these stock awards is subject to fluctuations in the company’s stock price, which aligns the interests of the CEO with those of the shareholders.

Moreover, the stock option awards and incentive plan compensation further incentivize Tomé’s commitment to driving UPS’s growth, profitability, and shareholder returns. These compensation components are typically structured to reward the achievement of specific financial and strategic objectives.

“It is through a comprehensive and balanced compensation program that we aim to attract and retain top executive talent, while aligning their interests with the long-term success of UPS.”

Carol Tomé’s compensation history showcases the complexities of executive pay and its link to corporate performance. By aligning executive compensation with company goals and market trends, UPS aims to ensure a strong leadership team that is motivated to drive sustainable growth and deliver value to shareholders.

Section 8 concludes Carol Tomé’s compensation history, offering insights into the dynamic nature of executive compensation and its correlation with UPS’s financial performance. The next section will focus on the composition of UPS’s leadership team and board of directors.

Leadership Team and Board Members

The UPS leadership team is comprised of experienced executives who play crucial roles in shaping the company’s strategies and ensuring its success. Alongside CEO Carol Tomé, key members of the leadership team include Brian Newman as the Chief Financial Officer (CFO), Nando Cesarone as the President of U.S. and UPS Airline, Kate Gutmann as the President of International, Healthcare, and Supply Chain Solutions, and Bala Subramanian as the Chief Digital and Technology Officer.

Each member of the leadership team brings their expertise and insights to drive innovation, manage operations, and deliver exceptional customer service. Their collective efforts contribute to UPS’s position as a global leader in logistics and transportation.

The UPS board of directors oversees the governance of the company and ensures that it operates in the best interest of shareholders. The board includes individuals such as CEO Carol Tomé, Chairman William Johnson, and other independent directors. Their diverse backgrounds and extensive experience in various industries provide valuable perspectives and guidance.

Additionally, it’s worth noting that the average tenure for both the UPS management team and the board of directors reflects their commitment to the company’s long-term success. The leadership team and board members bring a wealth of knowledge, leadership skills, and strategic vision to guide UPS’s operations and drive growth in the ever-evolving logistics industry.

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