Pay doubles for UPS chief after promotion

Becoming CEO of a Fortune 500 company pays handsomely.

After being promoted from chief financial officer to chief executive officer, CEO Scott Davis at Sandy Springs-based UPS saw his total compensation more than double.

Davis made about $5.2 million in 2008, compared to about $2.2 million in 2007, according to the company’s 2008 proxy filed Friday with the Securities and Exchange Commission. Davis was promoted to CEO on Jan. 1, 2008.

Though executive salaries and 401(k) matches have been frozen this year, the proxy says that in 2009, Davis could earn up to 600 percent of his base salary in performance-based pay. In 2010, that goes up to 675 percent.

UPS’ outside directors (such as Duane Ackerman, chairman emeritus of BellSouth), in 2009 will earn a $90,000 retainer, $15,000 for serving as a committee chair and $130,000 in restricted stock grants.

The proxy also says the company’s annual shareholder meeting will be May 7 in Wilmington, Del.

The Atlanta Journal-Constitution calculates compensation based on an executive’s salary, bonus, nonequity incentive programs, above-market returns on pension plan, estimated value of stock and options granted in the year, and all other compensation, such as club memberships and use of corporate aircraft.