Form 4: UPS CEO Carol B. Tome Acquires 24,930 Restricted Performance Units

Carol B. Tome, CEO of United Parcel Service Inc., reports the acquisition of 24,930 restricted performance units convertible into Class A common stock.

Summary

• On February 5, 2025, Carol B. Tome, the CEO of United Parcel Service Inc. (UPS), acquired 24,930 restricted performance units.
• These units were awarded under the company's Long Term Incentive Compensation Program following the completion of the performance period.
• Each unit automatically converts into one share of Class A common stock.
• The reporting person directly owns 24,930 derivative securities following the reported transaction.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating alignment of management and shareholder interests. It's a neutral to slightly positive event.

Positives

• The acquisition of restricted performance units by the CEO aligns her interests with those of the shareholders, incentivizing her to improve company performance.

Future Outlook

The restricted performance units will convert into Class A common stock, potentially increasing the CEO's stake in the company.

Industry Context

Executive compensation packages often include restricted stock units or performance units to align executive interests with shareholder value. This is a common practice in publicly traded companies.

Comparison to Industry Standards

• Companies like FedEx and XPO Logistics also utilize long-term incentive plans that include performance-based equity awards for their executives.
• The specific terms and conditions of these plans vary, but the general goal is to incentivize executives to achieve specific performance targets that benefit shareholders.

Stakeholder Impact

• Shareholders may view the acquisition of restricted performance units by the CEO as a positive sign, as it aligns her interests with the company's long-term success.

Key Dates