UPS CEO Carol Tomé made $23.4 million in total compensation in 2023, a year in which the company saw its package volumes, revenue and operating profit decline.
Her compensation included a $1.5 million salary, $18.9 million in stock awards and nearly $3 million in other compensation and stock option awards.
The total was up from the nearly $19 million in total compensation Tomé made in 2022, but still less than the $27.6 million she made in 2021.
UPS said in a written statement that it ties “a significant portion” of executive pay to company performance, and its shareholder return is higher than similar companies. The increased compensation from 2022 to 2023 reflects a change in the long-term incentive program for the CEO, according to the company.
“It’s also important to note that UPS executive pay is at the midpoint when compared to other companies of similar size and global scale,” UPS said.
In a letter to investors in the company’s notice of its annual meeting, Tomé wrote: “After a difficult year, we exited 2023 with some momentum, but momentum is not enough.”
UPS has been working to slash expenses, including cutting 12,000 jobs to reduce management headcount by 14%. It is also considering selling Coyote Logistics, a truckload brokerage business it bought in 2015.
UPS Board Chair William Johnson in his letter to shareholders wrote that despite the uncertainties the company faced, “we were still able to return over $7.6 billion to shareowners in 2023 through dividends and share repurchases” and the board “recognizes management’s many achievements during such a challenging year.”
Last year, UPS struck a high-profile labor contract with the International Brotherhood of Teamsters — avoiding a strike, but losing some customers during the extensive negotiations that the company has vowed to win back.
UPS is scheduled to hold its annual meeting May 2, where shareholders will take an advisory vote on executive compensation, as well as vote on board members and on proposals by other shareholders.
A shareholder proposal from the National Center for Public Policy Research, a conservative think tank, is intended to reduce risk from company “greenwashing,” including “unfulfillable” environmental promises to reduce greenhouse gas emissions, by requesting a report on risks from voluntary carbon-reduction commitments.
UPS opposes the proposal, and says it is committed to reducing its carbon footprint and that its board provides effective oversight.
Another shareholder proposal from shareholder advocacy group liberal group As You Sow requests an annual report on diversity equity and inclusion. UPS is opposed to that proposal as well, saying it has “taken significant steps to develop and maintain a diverse and inclusive workforce” and it provides investors with “significant diversity and inclusion data.”
A third shareholder proposal by activist investor John Chevedden would reduce the voting power of Class A stock — which UPS opposes, saying its stock ownership structure does not concentrate voting power and that its capital structure contributes to its success.
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