CEO Bradley Jacobs, Board Didn’t Show Up To Answer Questions
Kara DenizEmail: [email protected] Phone: (202) 624-6911
(GREENWICH, Conn.) – Today, Teamsters Union members rallied outside XPO’s headquarters to denounce a compensation plan that could provide a windfall stock award for CEO Bradley Jacobs worth $110 million at current stock price levels. Jacobs and the Board didn’t show up to field workers’ and shareholders’ questions and concerns over the incentive pay plan.
XPO shareholders voted to approve the plan which reserves 3.4 million new shares and increases the individual annual equity award limit from 500,000 shares to 2.5 million. Teamsters gathered nearby holding signs that read: “No XPO Greed” and “eXPOsed: The Truth About Global Greed.”
“We are not surprised at today’s action, which was basically a rubber-stamp approval of Jacobs’ clubby board’s plan to enrich him on the backs of XPO workers,” said Ken Hall, Teamsters General Secretary-Treasurer.
Jacobs could be awarded up to 2.5 million shares at any time worth $110 million at today’s prices. Meanwhile, XPO workers face increasing health insurance costs while coverage is being slashed, and workers have no retirement security. Workers at six locations have already formed their union as Teamsters and more campaigns are under way.
In the letter to XPO Lead Independent Director Michael Jesselson sent earlier this month, Hall stated, “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 19 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.