March 2, 2010: United Parcel Service Inc. (UPS) said the total compensation paid to Chief Executive Scott Davis fell about 0.6% last year, to $6.24 million. Davis's 2009 base salary was flat at $1 million, in keeping with the package delivery giant's move to freeze management salaries amid the economic downturn. In addition, the value of stock awards included in the calculation of his total compensation slipped to $3.89 million, from about $3.97 million in 2008, according to the company's proxy statement filed late Monday.
UPS pegged Davis's 2008 total compensation at $5.6 million in its proxy statement last year. But Norman Black, a UPS spokesman, said a subsequent change in accounting standards for stock awards resulted in a restatement of his 2008 total compensation to $6.28 million.
Last month, UPS announced a thaw in its policy on management salary freezes for this year, citing signs of a nascent economic recovery. Black said managers will have to achieve various performance benchmarks to get them.
The company will hold its annual meeting May 6 in Wilmington, Del. No proposals from shareholders are up for consideration.