Mega Broker’s Top Executives See Pay Slashed Due to COVID-19 Recession
Eden Prairie, MN – A leading third-party logistics (3PL) provider is slashing pay for its top executives as the COVID-19 recession worsens.
In an 8-K filing with the Securities and Exchange Commission (SEC) on Friday, April 17, Eden Prairie, MN-based C.H. Robinson Worldwide’s Board of Directors approved temporary salary reductions to its C-suite executive team.
According to the filing, the pay reductions will become effective May 1 and run through July 31, 2020.
Most impacted is president and CEO, Robert C. Biesterfeld Jr., who will have his annual base salary reduced by 50 percent during the three-month period.
Biesterfeld received $900,000 in base salary in 2019 with total realized compensation of more than $2.1 million.
Other C-suite executives will see their base salaries reduced by 20 percent.
These include Michael Zechmeister, CFO, and Christopher J. O’Brien, chief commercial officer, who had annual base salaries of $700,000 and $500,000 respectively in 2019.
Zechmeister’s total realized compensation in 2019 was more than $665,000 and O’Brien’s was more than $943,000.
Also included is Mac S. Pinkerton, president of NAST, and Michael J. Short, president of global freight forwarding, whose base salaries of $475,000 and $525,000 will be cut by 20 percent for the period.
Base cash retainer payments for the applicable period for the members of the Board will also be reduced by 50 percent.
While C.H. Robinson’s stock jumped almost 15 percent last month, it is down more than 17 percent for the 12-month period.
To view more of C.H. Robinson’s financial filings, click HERE.
In Case You Missed It…
Earlier this year a group of produce growers filed a massive $1.1 billion lawsuit against C.H. Robinson alleging the mega-freight and logistics broker engaged in “deceptive business practices,” such as “freight topping,” and then cooked the books in order to conceal the “secret profits” made at the growers’ expense.
Read the full details HERE.
C.H. Robinson responded by vowing the company would file a countersuit alleging the plaintiffs filed the suit to gain “media attention” and “contains an enormous amount of self-serving falsehoods as well as blatant mischaracterizations and fabrications.”
Read more about C.H. Robinson’s response HERE.