John Simone, USA Truck president and chief executive officer, earned more than $1 million in his first year with the Van Buren-based trucking company.
Simone, who was announced as president in February 2013, was paid a base salary of $402,507, and the remainder of his compensation was earned through stock and option awards and other compensation. Compensation for Simone and other USA Truck officers was disclosed in the company’s annual proxy filing with the Securities and Exchange Commission.
USA Truck has reported losses for five consecutive years, but it has seen gains in revenue and skyrocketing stock prices during Simone’s first year. He guided the company through a takeover attempt by rival Knight Transportation of Phoenix.
The value of company stock jumped 240 percent during Simone’s first year with the company. USA Truck stock ended trading Monday at $18 per share. Operating income improved by $20 million in his first year. Without a pair of one-time expenses totaling $1.5 million, Simone said the company would have reported $1.3 million in profit.
Cliff Beckham, executive vice president and chief financial officer, earned $349,999 for the year, including $312,500 in base salary. Beckham’s earnings were a decline from the $383,201 he earned as CEO in 2012. Michael R. Weindel, executive vice president for freight bro-kerage and dedicated services, was paid $237,503, including $215,004 in base salary.
A portion of executive earnings for 2014 was outlined in the proxy statement. Simone was paid $265,000 in April as part of a retention bonus plan that also paid Beckham $75,000 and Weindel $53,751.
A retention bonus plan was enacted to help keep the management team in place as USA Truck fought off a takeover attempt and worked to implement a turnaround plan outlined by Simone. Knight, which owns 1.3 million shares, or 12.4 percent, of USA Truck stock, agreed earlier this year to a standstill agreement and has stalled its takeover attempt.
Knight, which offered a deal valued at $242 million and $9 per share in September, will not vote on proposals presented at this year’s USA Truck shareholders meeting.USA Truck will hold its annual meeting at the company’s Van Buren headquarters at 10 a.m. May 23.
Shareholders are being asked to vote on the re-election of two board members. William H. Hanna and James D. Simpson have been nominated for terms that expire in 2017. USA Truck has its boardmembers on staggered terms, an option companies can use as a means of fighting off a hostile-takeover attempt.
Also on the agenda is an amended incentive plan for employees. The “2014 Omnibus Incentive Plan” would replace an incentive plan enacted in 2004.
Stonehouse Capital Management of New York is the largest shareholder on record with 1.55 million shares, or 14.7 percent of company stock. Baker Street Capital has 1.4 million shares for 13.3 percent ownership. Former USA Truck executive James Speed is the largest individual shareholder with 720,063 shares, or 6.9 percent.
Business, Pages 23 on 04/29/2014