XPO Shareholders Revolt Against Overweight CEO Pay
Nearly Half of Outside Shareholders Vote Against ‘Say-on-Pay’ Proposal; Teamsters Previously Warned of Pay Risk
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SOURCE: TEAMSTER.ORG | (WASHINGTON) – XPO Logistics, Inc. (NYSE:XPO) shareholders delivered one of the sharpest rebukes of CEO pay so far this proxy year when a near-majority of outside shareholders opposed the company’s “say-on-pay” measure following a $20 million mega-equity grant to CEO Bradley Jacobs.
Recently announced voting results from XPO’s annual shareholder meeting held last week revealed only about 62 percent of votes cast approved of XPO’s executive pay practices and just 51 percent excluding Jacobs’ and other insiders ownership of XPO stock.
“It is a farce that the company’s founder and largest shareholder requires a three-fold increase in his compensation to stick around and work towards delivering shareholder value for the long haul,” said Teamster General Secretary-Treasurer Ken Hall. “The board’s credibility is now at stake. It needs to demonstrate to shareholders that it treats its oversight responsibilities as more than a rubber stamp for Jacobs’ aggressive empire building.”
At a special meeting of shareholders held last December, the Teamsters warned of potential excessive pay risks, urging investors to oppose the approval of a new lucrative executive equity incentive plan.
Based on available results, just four companies in the Russell 3000 have lost their say-on-pay votes so far this year, while only about two dozen companies have received more than 38 percent opposition.
Meanwhile, 35 percent of outside shareholders also backed a Teamster-sponsored shareholder resolution calling for enhanced disclosure of XPO’s human capital management performance, among other sustainability practices.
The voting announcement came after the Teamsters joined U.S. and European XPO workers and a representative from the International Transport Workers’ Federation (ITF) at the May 10 shareholders meeting in Greenwich, Conn. to call out the global logistics giant for its excessive executive pay practices. Several workers told their own stories about deteriorating working conditions at XPO including violation of workers’ rights and wage theft throughout XPO operations. Jacobs has ignored repeated appeals from U.S. and European workers and their union representatives to engage in constructive dialogue.
XPO is one of the world’s largest global third-party logistics companies, providing transportation and logistical services to 63 percent of Fortune 100 companies.
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and “like” us on Facebook at www.facebook.com/teamsters.