Teamsters Question Proposed New Stock Compensation Cap at XPO Logistics
The International Brotherhood of Teamsters is concerned about a proposed change at XPO Logistics that would increase the maximum number of shares it can issue as compensation 400%, from 500,000 shares to 2.5 million, the union wrote in a Dec. 1 letter to the company’s board of directors.
The Greenwich, Connecticut, carrier, which ranks No. 3 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, is asking shareholders to approve a compensation plan that would allow it to issue 3.4 million new shares in total, but the union is concerned about the size of potential grants to about 300 upper-level employees.
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The Teamsters wrote that a lower cap between 500,000 and 2.5 million would be more appropriate, and without a change, it will vote against the proposal at a special shareholders meeting Dec. 20.
But XPO Logistics wrote in a proxy statement that raising the stock compensation cap is necessary to attract and retain talented directors, officers, employees and consultants to compete with other carriers and logistics firms. It also said the stock compensation motivates those executives “toward our long-term growth and financial success.”
While the proxy statement didn’t reference specific competitors, XPO competes against UPS Inc., FedEx Corp., DHL Group, Ryder Supply Chain Solutions, YRC Worldwide, Old Dominion Freight Line, Estes Express Lines and ArcBest Corp. for market share in the 3PL and LTL markets.
