USA Truck Chief Financial Officer Cliff Beckham is resigning after 20 years with the trucking and transportation company.
Beckham, 42, said Thursday that he had been contemplating a change since making the transition from CEO to CFO last year. John Simone was named the Van Buren company's top executive in February 2013, and the two began discussing the possibility of Beckham's departure then, though the notice of resignation wasn't official until last Friday.
"My role as CFO was never going to be permanent," Beckham said. "I wanted to help the company through the transition, and the timing is right because we returned the company to profitability. That was one of the goals that John and I had originally."
USA Truck reported a positive quarterly result for the first time in three years on July 31 with a second-quarter profit of $722,000. Reaching that milestone was a significant factor in the timing of the decision, both executives said.
Simone called Beckham very "instrumental" in the company's turnaround efforts the past 18 months. USA Truck last reported an annual profit in 2008.
Simone had a while for Beckham's departure to sink in.
"I knew when I took over that I wouldn't have Cliff forever," Simone said. "I am thankful for having him as long as we did. We've been planning this exit since the day I arrived. He expressed a desire to spend some time with his family and have a fresh start. He'd been here his entire career and would like to explore other opportunities."
USA Truck will pay Beckham, who earned $349,999 last year, his monthly salary through the end of August. During the month of September the company will pay Beckham an additional $25,000.
If the company needs Beckham to remain into October to assist with the transition, he'll earn an additional $1,136.36 per day. As part of the agreement Beckham is being allowed to keep a $75,000 retention bonus the company paid in April. Under the terms of the bonus plan, executives had to remain through Oct. 30 or they would have to forfeit the money.
Beckham declined to provide details on any no-compete provisions or other restrictions that might be placed on his departure, but said USA Truck was being "amicable and honorable." He said he will begin evaluating his next career move after spending time with his family and "resting, physically and mentally."
USA Truck fought off three public takeover attempts in the past six years, including one by rival Knight Transportation in September 2013. The company added three members to its board of directors in May, including a two suggested by an activist shareholders group that owns a combined 28 percent stake in the company.
"I've had a lot on my plate the last four or five years," Beckham said. "There is a time to do nothing and rest."
Simone has leaned heavily on his experience at previous stops in filling positions at USA Truck. He said it is likely he'll consider hiring a CFO that he has worked with in the past, but said it wasn't a foregone conclusion.
"We want somebody that understands moving a company quickly through a turnaround," Simone said. "We want somebody with experience building a company. It doesn't have to be a turnaround expert, but someone that has helped a company improve its performance."
USA Truck stock ended trading on Thursday at $18.32, down $0.01 from the day before. Shares were trading at $5.28 in August of 2013.
Business on 08/08/2014