Truck Load Rates Halt 8 Week Slide 2.0

It's a lot like illegal immigration in that nobody in the government cares what the law is. Somebody important is making a lot of money from it and it lowers their costs.

 

I'm just amazed that people don't make a bigger deal of how much some of these execs at the large carriers make. For an example, here's what JB Hunt execs made in 2021:

CEO: $8.8M
CFO: $2.8M
CCO: $3.7M
COO: $3.7M
Intermodal President: $3.2M

It's infuriating what they make but as long as they keep finding drivers who are willing to make $0.55 CPM nothing is going to change. I mean every board member made at least $245K for probably a total of 120 hours of work in a year.

As long as the broker/carrier is publicly traded all this information is public. Just look for their 2022 Proxy statement normally contained in the Investor Relations section of their website.

Source: https://d18rn0p25nwr6d.cloudfront.net/CIK-0000728535/000dfdf6-5c3d-48f6-ba51-602ac665382b.pdf

 

So what’s a fair wage for them then?

 

Are you saying $8.8M or $3.7M is a fair wage?

I always ask could they not find someone to do it for $2M? They are bidding against themselves.

There's only a handful of people worth a $8.8M salary and the CEO of JB Hunt isn't one of them. If any of those execs left JB Hunt left tomorrow do you think their stock would crate or operations would cease? I do not.

 

. Agreed market forces always win in the end. You believe your pay is top shelf but your driver said otherwise. Maybe not with words but his actions said it’s just another paycheck job. I know a few small fleet guys and worked for some and the common problem is they have a notion that they pay big bucks and can’t understand why guys leave. I think 90 to 100k for short haul reefer ( .72 mileage pay) is at the high side of average but still not top shelf pay. IMHO your fishing for your next driver but want to put less bait on the hook.

 

A lot of these drivers out here wouldn't know a good company if it slapped them upside the head. Sounds like he has competitive pay, good equipment, benefits. Only thing I'd question is the out for 2 weeks thing other than that...

 

JB Hunt is number 311 on the Fortune 500 which makes it one of the most valuable companies in the world. They produced $13 billion dollars in revenue just in the first half of this year, and they employ 33,000 people. The top brass for Fortune 500 companies are generally the highest paid execs in the world because they know how to make their companies more money and make the stock values go up. There are thousands of men and women making this kind of money running corporations across the US. But there is an entire level above them, the billionaires of which there are around 700 in the US today.

It takes smart well paid people at the top to create jobs for the rest of us. It's just part of the food chain and how things have always worked. Anybody who thinks that their boss is making too much is welcome to go out and start their own fortune 500 company.

 

There’s no way of knowing what would happen if any of them left tomorrow. Could you be successful as CEO of JB for $8mil? I couldn’t. I don’t have the desire or experience. I suspect if those making the call didn’t see the value in those salaries then they would be lower, so they must be providing something to the company.

I don’t make a habit out of counting people’s money, but just out of curiosity who is worth that much of a salary in your opinion?

 

When I ran a custom shop that made retail displays I would look at other companies and see what they paid top guys. This was done after a couple years of me running the shop. Reason was they wanted to change me to a salary and I hated the idea. It was done do to my classification as an exempt employee. I worked 50-80 hours every week and thought they was trying to get over on me. Little did I know at the time it was do to the government getting involved telling them or fine them.

After doing my research I found out I was one of the hire paid guys in the field and made a deal with getting overtime after 50 hours of work as a bonus each year. I was the highest paid shop foreman in that companies life because I ran it better then any other person before me. If anyone in charge of a company can make that company better than before they are worth that money regardless of what the pay is. It takes special people to really run a high end business. I had the opportunity to buy in and help run the company from the top and passed on it. Was above my pay grade at that time. Much respect to those who do.

 

Lets be real, a lot of those execs make the money not because of what they know but who they blow. Nepotism runs rampant at that level and if you think it's always the smartest and brightest that get hired on I've got a bridge to sell you.

There is at least a few examples of these CEO's running companies into the ground while giving themselves outrageous bonuses. Because you know...they can.

It's not like a vast majority of CEO's that run these companies actually built them from the ground up. Now those guys definitely should make extortionary amount of money.

p.s. Just for ####s and giggles... I looked up the salary of John Fieldly. His total compensation last year was $12,214,089. He's the CEO of Celcius, that just filed bankruptcy a few weeks back. What a mastermind.