Werner Enterprises adjusts executive compensation

OMAHA, NE – Werner Enterprises Inc. (NASDAQ:WERN), a prominent player in the trucking industry with a market capitalization of $2.1 billion, has announced changes to its executive compensation structure, effective February 13, 2025. The adjustments were detailed in a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro data, the company maintains strong financial health with a current ratio of 1.52, indicating solid liquidity to meet short-term obligations.

The company’s Compensation Committee has set new base salaries and awarded restricted stock (RS) and performance stock (PS) to its named executive officers (NEOs). Derek J. Leathers, Chairman and Chief Executive Officer, will receive a base salary of $980,000, along with 62,966 RS and 63,956 PS. Executive Vice President, Treasurer and Chief Financial Officer Christopher D. Wikoff’s new base salary is set at $520,000, with 7,496 RS and 7,614 PS awarded. The stock awards come at a time when Werner’s shares are trading near their 52-week low of $33.12, with InvestingPro analysis indicating the stock is currently fairly valued based on comprehensive fundamental analysis.

Additional NEOs, including Nathan J. Meisgeier, President and Chief Legal Officer, and James L. Johnson, Executive Vice President and Chief Accounting Officer, have also had their compensation packages revised. Jim S. Schelble, Executive Vice President and Chief Administrative Officer, did not receive any stock awards.

The compensation restructuring includes the vesting of restricted stock in three equal installments over three years and the potential earning and issuance of performance stock based on the company’s achievement of specific performance objectives. These objectives are related to the average annual growth percentage of diluted earnings per share (Diluted EPS) during the three-year period from January 1, 2025, through December 31, 2027. While current diluted EPS stands at $0.55, InvestingPro analysts forecast EPS to reach $1.10 in FY2025, suggesting potential for significant growth. For deeper insights into Werner’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. The actual vesting of performance stock can range from 0% to 200% of the target level, with adjustments made according to the company’s total shareholder return (TSR) in comparison to a peer group.

Moreover, the Compensation Committee approved the parameters for the 2025 fiscal year’s performance-based annual incentive cash bonus program (2025 AIP), which ties bonus payouts to the company’s operating income, revenues excluding fuel surcharge revenues, and individual performance metrics. NEOs could receive bonuses between 0% and 200% of their target bonus, depending on the achievement level of the set goals.

The NEOs are also eligible for certain perquisites, including personal use of company vehicles and aircraft, country club memberships, and medical care membership programs. They can participate in company retirement savings and stock purchase plans, as well as health and welfare benefit programs.

This disclosure is based on information provided by Werner Enterprises in its SEC filing and reflects the company’s efforts to align executive compensation with performance and shareholder interests. The company has demonstrated its commitment to shareholders through 39 consecutive years of dividend payments, currently yielding 1.6%, while maintaining a moderate debt-to-equity ratio of 0.45.

In other recent news, Werner Enterprises has announced financial projections and executive compensation developments. UBS analyst Thomas Wadewitz revised the price target for Werner Enterprises shares to $36, down from $39, while maintaining a Neutral rating. Wadewitz expects the first quarter results to reflect seasonal weakness, with an anticipated earnings per share (EPS) of $0.09. He projects a decline in the Truckload Transportation Services operating ratio and a break-even performance in the Logistics segment.

Additionally, Werner Enterprises’ Board of Directors approved restricted stock awards for two of its top executives under the 2023 Long-Term Incentive Plan. Christopher D. Wikoff, the Executive Vice President, Treasurer, and Chief Financial Officer, received 5,081 shares of restricted stock, while Nathan J. Meisgeier, President and Chief Legal Officer, was awarded 12,702 shares. These shares will vest in full on the third anniversary of the grant date, aligning executive compensation with long-term shareholder value. The details of these awards and the incentive plan are available in the company’s SEC filings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.