Executive officers of Fort Smith-based Arkansas Best Corp. will take home smaller bonuses than they did last year, but the company also had less income.
According to Securities and Exchange Commission filing released Monday, the company paid Bob Davidson, president and chief executive officer, $794,053 as part of Arkansas Best's Executive Officer Annual Incentive Compensation Plan for 2006.
Other officers were compensated as follows:
* Judy McReynolds, senior vice president and chief financial officer -- $315,365.
* this w Richard Cooper, senior vice president of administration and general counsel -- $322,584.
* Christopher Baltz, ABF Freight System senior vice president of yield management and strategic management -- $358,354.
* Wesley Kemp, ABF senior vice president of operations -- $358,354.
* Roy Slagle, ABF senior vice president of sales and marketing -- $358,354.
Less-than-truckload carrier ABF is the largest subsidiary of Arkansas Best.
For 2005 performance, Robert Young, who was CEO until Jan. 31, 2005, received a bonus of $1.65 million, and the company paid Davidson $1.01 million.
Davidson then was president and chief operating officer. He succeeded Young as CEO on Feb. 1.
In 2005, Arkansas Best reported net income of $104.6 million compared to $75.5 million in 2004, a rise of 38.52 percent.
Net income fell 19.62 percent in 2006 to $84.09 million.
Less-than-truckload carriers like ABF Freight have more exposure to the ups and downs of industrial sector of the economy, said Thom Albrecht, a trucking analyst with Stephens Inc.
During the first two quarters of 2006 and well into the third quarter, he said the industry was "red hot" while the retail sector, served mostly by truckload carriers, was "spotty" all year. (Stephens, a Little Rock-based investment banking and securities brokerage firm, has provided financial and other services to Arkansas Best within the past year and expects to receive or seek compensation for investment banking services in the next three months.)
Executive officers of Old Dominion Freight Line, a Thomasville, N.C.-based, less-than-truckload carrier that will report 2006 results on Thursday, received bonuses for 2005 similar to those of Arkansas Best's. Market capitalization for Old Dominion and Arkansas Best is $999.96 million and $924.32 million, respectively, according to Yahoo! Finance.
Old Dominion paid its CEO Earl Congdon a bonus of $1.74 million and COO David Congdon $1.05 million for 2005 performance, according to an SEC filing.
That company's net income in 2005 rose 38.2 percent to $53.9 million from $39 million in 2004.
Shares of Arkansas Best (NASDAQ: ABFS) closed Monday at $37.19, up 71 cents. In the past 52 weeks, the price ranged from a $50.67 high to a $35.68 low.
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