UPS CEO got $10.7 million in 2012 compensation

Published on NewsOK Modified: March 29, 2013 at 5:03 pm •  Published: March 29, 2013
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Davis, 61, has been CEO of the Atlanta-based company since 2008 and was chief financial officer before that. He joined UPS in 1986 when it bought the Oregon-based technology company where he was CEO.

The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.

The value that a company assigned to an executive's stock and option awards for 2012 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.