8-KMaterial AgreementsExhibits & Filings

UNITED PARCEL SERVICE INC 8-K Report, Material Agreement (Mar 7, 2006)

Filed March 7, 2006For Securities:UPS

Summary

This 8-K filing from United Parcel Service, Inc. (UPS) on March 7, 2006, primarily serves as a formalization of a material definitive agreement related to executive compensation. Specifically, it discloses the finalized form of the Restricted Stock Unit Award Agreement for the UPS 2006 Long-Term Incentive Performance Awards. This award was previously approved by the Compensation Committee of the Board of Directors earlier in the year, as indicated in a January filing. The agreement details the terms and conditions under which restricted stock units will be granted to key executives as part of their long-term incentive compensation. While the exact number of units or specific recipients are not detailed in this exhibit, the filing confirms the operationalization of a significant component of the company's executive remuneration strategy for 2006. Investors should note this as an update on executive compensation practices and a confirmation of the company's commitment to aligning executive incentives with long-term performance.

Key Highlights

  • 1UPS finalized the form of the Restricted Stock Unit Award Agreement for the 2006 Long-Term Incentive Performance Awards.
  • 2The RSUs are part of the UPS Incentive Compensation Plan, aimed at rewarding long-term performance.
  • 3This filing confirms the operationalization of previously approved executive compensation awards.
  • 4The agreement was finalized on March 1, 2006.
  • 5Exhibit 10.1 contains the detailed terms of the Restricted Stock Unit Award Agreement.

Frequently Asked Questions

The main purpose of this 8-K filing is to formally disclose the finalized Restricted Stock Unit Award Agreement for the UPS 2006 Long-Term Incentive Performance Awards, which is a material definitive agreement related to executive compensation.

The award of restricted stock units was previously approved by the Compensation Committee of the Board of Directors of UPS as disclosed in a Current Report on Form 8-K filed on January 13, 2006.

The agreement outlines the terms and conditions for granting restricted stock units (RSUs) to executives as part of their long-term incentive compensation, intended to align their interests with the company's long-term performance. The specific details are contained within Exhibit 10.1.

The report is signed by D. Scott Davis, Senior Vice President, Treasurer and Chief Financial Officer, on behalf of United Parcel Service, Inc.