XPO shareholders overwhelmingly approved a plan Dec. 20 to increase the maximum number of shares the company can issue to executives as compensation, to 2.5 million shares from 500,000, easily overcoming opposition from the International Brotherhood of Teamsters.
The union complained in a Dec. 1 letter and protested publicly a few times about the pay raises, trying to tie the issue to CEO Brad Jacobs. However, the stock compensation plan actually applies to about 300 upper-level executives in the company.
XPO ranks No. 3 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
XPO told investors that being able to offer more stock would help the less-than-truckload and third-party logistics company compete better against rivals. XPO’s competitors include UPS Inc., FedEx Corp., Ceva Logistics, Echo Global Logistics, DHL Group, Ryder Supply Chain Solutions, YRC Worldwide, Old Dominion Freight Line, Estes Express Lines and ArcBest Corp. in the 3PL and LTL markets.
The Teamsters offered a compromise that it said would help benefit union labor, but ultimately the XPO measure was approved with 97% of the vote of shareholders.
UPS ranks No. 1, FedEx No. 2, Ryder ranks No. 13, YRC ranks No. 5, Old Dominion ranks No. 11, Estes ranks No. 14 and ArcBest ranks No. 12 on the TT Top 100 list.
DHL ranks No. 7, Ceva ranks No. 9, Echo ranks No. 35 on the Transport Topics Top 50 list of the largest logistics companies in the United States, Canada and Mexico.