Tuesday, April 01, 2008

YRC Worldwide CEO Made $4.9 Million

Bill Zollars, chief executive of YRC Worldwide Inc., received a compensation package in 2007 valued at $4.95 million, almost 33 percent lower than the year before, the trucking company reported in a filing Tuesday.

The decline came as the nation's largest less-than-truckload hauler dealt with smaller shipments brought on by the slowing economy and internal disruptions as it tried to restructure some of its struggling subsidiaries.

Zollars, who has served as CEO and chairman at the Overland Park, Kan.-based company since November 1999, was paid $1.04 million in salary, $631,800 in non-equity incentive payments and $191,889 in other compensation, which included a $150,000 perk allowance and $35,139 for personal use of corporate aircraft and taxes on that use.

Based on YRC's performance in 2007, the company said it decided not to give its top executives performance bonuses of stock and options. However, it did award Zollars stock and options worth $3.08 million on the day they were given to reflect performance in past years.

The company reported an annual loss in 2007 of $638.4 million, or $11.17 per share, compared with profits of $276.6 million, or $4.74 per share, a year ago.

Most of the loss came from a $782 million impairment charge as the company wrote down the value of the former USF Corp. companies that YRC bought in May 2005. Those companies now make up YRC's regional transportation business division and have struggled with tough competition and smaller loads.

Two of the subsidiaries, USF Holland and USF Reddaway, announced in February they were closing 27 service centers, mostly in the South and Southwest, and laying off 1,100 workers.

Excluding the one-time charges, YRC said it would have earned $1.88 per share, below Wall Street's expectations.

Annual revenue declined about 3 percent, from $9.92 billion to $9.62 billion.

Zollars received a compensation package valued at $7.35 million in 2006, including $1 million in salary, $485,293 in non-equity incentives, $233,803 in other payments and stock and options worth $5.6 million on the day they were awarded.

In 2007, Zollars also realized $2.6 million on the exercise of stock options and $862,153 from the vesting of almost 20,600 stock shares. Those aren't included in the his total compensation from the company because they reflect personal finance decisions.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements.

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