Potential $110 Million Windfall for CEO Sparks Investor Call for Vote Against Incentive Plan at Special Meeting
(WASHINGTON) – Today, in a letter to XPO Logistics’ [NYSE: XPO] Board of Directors, the International Brotherhood of Teamsters raised objections to the company’s proposed 2016 Omnibus Incentive Compensation Plan (the Plan) that could provide a windfall stock award for CEO Bradley Jacobs worth $110 million at current stock price levels.
At a special meeting on December 20, 2016, XPO shareholders will vote on the proposed plan which reserves 3.4 million new shares and increases the individual annual equity award limit from 500,000 shares to 2.5 million.
Absent an amendment to the Plan that would set a moderate and reasonable individual award limit, the Teamsters will vote against the Plan and recommend fellow shareholders do the same.
In the letter to XPO Lead Independent Director Michael Jesselson, Teamsters General Secretary-Treasurer Ken Hall notes that the Plan as proposed could allow the board to award Jacobs compensation that is 160 times his base salary and five times the target value of the equity award he was granted under his new employment agreement, which is designed to cover the four-year term of the new contract.
Hall also questions the efficacy of the plan design to incentivize management. In the letter Hall states, “We believe the board would have ample room to incentivize and retain executives with a lower limit, particularly considering the new plan also doubles the maximum, annual cash award payable to any individual to $10 million. Moreover, with CEO Jacobs already holding 15 percent of common shares, it is not clear to us that large equity awards are required to retain and incentivize his services.”
“Under no conceivable scenario is a payout of 2.5 million shares to CEO Jacobs, the company’s largest shareholder, justifiable,” Hall said. “The board has lost sight of one of its prime responsibilities—establishing sound executive pay practices that incentivize performance and protect the interests of shareholders.”
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @teamsters and “like” us on Facebook at www.facebook.com/teamsters.
110 million dollar bonus and I can't get a pallet Jack for my route that has 15 deliverys everyday seems legit
ReplyDeleteWe can't get new wheels for our handcarts or tools to fix safe stack bars at our terminal,this company has turned into a joke.
ReplyDeleteHow does it feel Mr.Jacobs to have a contrac?
ReplyDeleteHave some greasy pizza and hot dogs.. That keeps people quiet
ReplyDeleteBrad can buy a nice house,yacht,car as well as many more nice things with his bonus,with mine i can buy a nice shirt.
ReplyDeleteThat's if you get a bonus
DeleteHe would tell you if you don't like here's the door. He is the worst of the worst in corporate greed. He is building a house of cards with his ONLY concern being the stock price.
ReplyDeleteAsk him about his 13 million dollar settlement with the SEC that kept him out of jail for cooking the books when he ran United Rentals. This Zebra has not changed his stripes and will flourish under a Business ftreindly Trump administration.
ReplyDeleteThe rapeing of America continues......
ReplyDeletetime for a change people when are u going to wake up!
ReplyDeleteSo!!!Now you all see what i warned you about. I came on here 2 1/2 year's ago and warned you all about what Con-way was going to do.then I warned you all of what XPO was going to do. Most of you said but Bradley and Tony are family man. They'll take care of us. Yep!!they sure are family men and guess who's family they're taking care of??
ReplyDeleteBut all of you keep trusting on them. I'm sure the truckload employees are feeling the Lθve. But don't worry Bradley and Tony aren't done yet.. I had mentioned that at one point Bradley had said. We're not in the business of Charity we're in the business of making money whatever it takes. So I'll just say. Be prepared they're not done and remember no changes for at least one year. And you all have ran that year out. 2017 comes with new surprises..
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I almost forgot. I hope you people like videos. You'll be seeing them alot.
Well I'll just let greed take it's course..:-$
Perhaps if some of you guys petition for union representation brad might have to invest some of his hard(ly)earned dollars on some union busters (he hates doing that!!!)
ReplyDeleteThe only way these mother fuckers will ever brake is if the drivers across this country unite and show all these greedy low life parasites who really runs the world it's the ordinary hard working people! It truly is easier for a camel to fit through the eye of a needle then it is for a rich man to get to heaven. Bescause they are evil
ReplyDeleteWe need to start a petition to get rid of the on board cameras people blowing red lights just so they don't trigger camera I would say that's a safety issue new drivers taking eyes off road when the trigger the camera and you know how often new drivers trigger the camera I would say another safety issue. Someone that bows how to work these sites start that petition and people will sign on and send it to osha lets for once show them that we the drivers are united,because till now all I've seen out of conway drivers is kiss asses and back stabbers lets at least unite on this issue I know everyone hate the camera
ReplyDeletePrepare to get railroaded with PTO cuts! While mr Jacobs gets a big pay out.. lube up boys the train is coming!!
ReplyDeleteWhat is the word about Pto cuts, is this true?
DeleteThat it's too high and needs to be cut
DeleteAnyone know what is the news on Milwaukee and Des Plains on voting on union?
ReplyDeletewhat is the corporate hr number? a sector supervisor told me to not talk about unions when I was in the bathroom. Can't even take a break for a minute
ReplyDeleteWon't do any good calling them they will just intiminate you,say your supervisor was in the right and if you give him your name he will call your t.m.so he give you a scolding also,been there done that,just stop talking when a supervisor comes near, makes them even more pissed.keep em guessing!!!welcome to xpo.
DeleteGood idea. but then the supervisor will treat me more like shit for doing that. ie load this trailer, help this person, your production is down, etc
DeleteA supervisor at Ula Roy bracamonte is committing unfair labor practices. As a result, he can easily be facing charges at the labor department for intimidating and asking employees about union activity. He has even gone far as to tell employees to vote against the union.
DeleteTry not talking union when you are on the the company clock. You can talk about anything you want and they can't do anything about it when your on lunch or off the clock.
ReplyDeleteUntil you punch back in
DeleteThen they will walk you
DeleteMIAMI TEAMSTER, LIKE I SAID BEFORE AND THIS PEOPLE STILL DON'T GET IT , UNION IS THE ONLY WAY TO GO ,
ReplyDeleteTHIS WHY YOU NEED TO GO UNION!!
ReplyDeleteALL THESE STATEMENTS GET UNION REPRESENTATION ASAP TO HAVE A BETTER FUTURE AND LIFE.
Have any terminals tried to leave the union once they voted them in?
ReplyDeleteHell no why would you ever do that just voteing them in has changed so much just think how much more we can change once we have a contract
DeleteIs xpo going to sell conway soon?
ReplyDeleteIF XPO EVER DECIDES TO $ELL US OFF? YOU BETTER MAKE SURE YOUR CERTIFIED !!!!
DeleteOR ELSE. ?!!
LOCAL 769
Con-way is no more
Deleteyes
Deleteit could be good
DeleteThey stole the money we recycle with cans at ula. They kept buying food for the office but could not even buy cups so i can drink water from the dirty machine. Somebody has to come up with that money. I put alot of cans in that blue bin. We want our can money tim ula
ReplyDeleteThis company is screw us in so many ways and this guy is worried about can money.get real
DeleteHe wants his 85 cents back
Deletetha's why miami got union,for better future,and respect,union all the way, keep your word and your balls, vote union
ReplyDeleteWORD TO THE WISE, LADIES AND GENTLEMAN
ReplyDeleteBRAD JACOBS HAS A CONTRACT WHY CAN'T WE HAVE ONE TOO.
Precisely now lets get it done,all for one and one for all united we stand divided we,,,,,,
Deletegive everything to this corporate pig Jacobs.
Monday meetings on vacation line up and lube up
ReplyDelete