AmazonScience/document-haystack

1Qualified and Non-Qualified Pension Plans2Certain executive officers are eligible to participate in our qualified retirement program, the UPS Retirement 3Plan. Benefits payable under the plan are subject to the maximum compensation limits and the annual benefit 4limits for a tax-qualified defined benefit plan as established by the Internal Revenue Service. Amounts exceeding 5these limits are paid pursuant to the UPS Excess Coordinating Benefit Plan, which is a non-qualified restoration 6plan designed to replace the benefits limited under the tax-qualified plan. Without the Excess Coordinating 7Benefit Plan, the executive officers would receive a lower benefit as a percent of final average earnings than the 8benefit received by other participants in the UPS Retirement Plan. In accordance with the terms of the Excess 9Coordinating Benefit Plan, following a participant’s retirement, the Company pays an amount equal to the Social 10Security and Medicare taxes due on the present value of the benefits provided under the plan.11Financial Planning Services12Our executive officers are eligible for a financial services benefit. The Company reimburses fees from financial 13and tax service providers up to $15,000 per year, including the cost of personal excess liability 14insurance coverage.15Executive Health Services16Our executive officers are eligible for certain executive health services benefits, including comprehensive 17physical examinations. UPS’s business continuity is best facilitated by avoiding any prolonged or unexpected 18absences by members of its senior management team.19Other Compensation and Governance Policies20Stock Ownership Guidelines21CEO  = 8x annual salary22Other Executive Officers  = 5x annual salary23Directors  = 5x annual retainer24Our stock ownership guidelines apply to executive officers and members of the board. Shares of class A common 25stock (excluding any pledged shares), deferred units and vested and unvested RSUs and RPUs awarded under 26our equity incentive plans are considered owned for purposes of calculating ownership. Executive officers and 27directors are expected to reach target ownership within five years of the date that the executive officer or 28director became subject to the guideline.29As of December 31, 2023, all of the NEOs who have been subject to the guidelines for at least five years 30exceeded their target stock ownership. In addition, all non-employee directors who have been subject to the 31guidelines for at least five years exceeded their target stock ownership. RSUs are required to be held by non-32employee directors until separation from the board.33Hedging and Pledging Policies34We prohibit our executive officers and directors from hedging their ownership in UPS stock. Specifically, they are 35prohibited from purchasing or selling derivative securities relating to UPS stock and from purchasing financial 36instruments that are designed to hedge or offset any decrease in the market value of UPS securities. 37Additionally, we prohibit our directors and executive officers from entering into pledges of UPS securities, 38including using UPS securities as collateral for a loan and holding UPS securities in margin accounts. 39Furthermore, our employees, officers and directors are prohibited from engaging in short sales of UPS stock.40Incentive-Based Compensation Clawback Policy41We have adopted an incentive-based compensation clawback policy that complies with NYSE requirements. This 42policy provides for the recovery of the amount of erroneously awarded incentive-based compensation received 43by executive officers when the Company is required to prepare an accounting restatement, subject to limited 44exceptions in accordance with the NYSE requirements.454246 47Notice of Annual Meeting of Shareowners and 2024 Proxy Statement