Knight-Swift executives take pay cut amid cost reduction efforts

Discussion in 'Swift' started by Trucks66, Aug 25, 2023.

  1. Trucks66

    Trucks66 Light Load Member

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    Following a tough second quarter, Knight-Swift Transportation announced Friday after the market closed that its two top executives would take a 20% voluntary cut to their base pay for the remainder of the year.

    The nation’s largest truckload carrier missed second-quarter expectations and cut its full-year earnings-per-share guidance by 36% at the midpoint of the range. Knight-Swift’s (NYSE: KNX) new outlook included near-term earnings dilution from the acquisition of carrier U.S. Xpress, which hadn’t been baked into prior guidance.

    Other headwinds to the revised outlook included further weakness in TL and intermodal rates as well as lower gains on equipment sales due to declining used truck values. The company has also drastically curtailed its third-party insurance offering to small operators due to losses from unfavorable claims development.

    “In support of the initiatives of Knight-Swift Transportation Holdings Inc. (the “Company”) to reduce costs in the third and fourth quarters of 2023, the Company’s Chief Executive Officer, David Jackson and Chief Financial Officer, Adam Miller have elected to voluntarily reduce their base salaries by approximately 20% each, commencing September 3, 2023 and expected to continue through December 30, 2023,” a filing with the Securities and Exchange Commission read.

    An April filing listed Jackson’s base salary at $925,000 and Miller’s at $825,000. Including stock awards and other comp, the two combined for more than $11 million in total compensation last year.

    The temporary reductions are to base salaries only
     
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  3. Cattleman84

    Cattleman84 Road Train Member

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    I would be happy for nearly a year with HALF of that 20% as my annual income.... SMDH
     
  4. Magoo1968

    Magoo1968 Road Train Member

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    Notice it says base pay … the majority of their income is the bonuses lol . It sounds better saying 20% cut than 3.2% of their total income.. lol
     
  5. PaulMinternational

    PaulMinternational Heavy Load Member

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    Think about those salaries and stock options when you read the yellow closure thread and see someone blame the union for that mess.
     
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  6. JC1971

    JC1971 Road Train Member

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    Wow! They took a cut for the remaining four months of the year. Meanwhile, their minimum wage drivers are barely making $50K per year.
     
  7. Oor

    Oor Road Train Member

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    Saved $87,500.

    Could have just sold one of those 25,000 tractors that apparantly is sitting idle.

    Management ain't very bright over there.
     
  8. Moosetek13

    Moosetek13 Road Train Member

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    It seems it has been a hard year for all of us, even those at the top.
     
  9. Antinomian

    Antinomian Road Train Member

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    Eleven million wouldn't amount to a rounding error on Yellow's annual payroll outlays.
     
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  10. bzinger

    bzinger Road Train Member

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    Gee I hope they don't miss a BMW or Mercedes payment.
     
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  11. buddyd157

    buddyd157 Road Train Member

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    i guess this means Juan the landscaper is outta a job now too..???

    and Rex the pool boy..??

    and Tanya the tennis pro..???

    sheesh, it's gonna be a tough winter for those execs and thier wives.....
     
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