January 5, 2015: The YRCW Board of Directors, including two nominated by James Hoffa, has handed the top two executives a $10 million bonus.
“What happened to ‘equality of sacrifice’” asked Frank Fullerton, a YRC road driver out of Local 728 Atlanta. “This is a slap in the face to every YRC employee and retiree, who has given up wages, pensions and vacations. And the IBT goes along – one more reason to dump Hoffa for a new leadership.”
The YRCW board terminated and then rehired CEO James Welch and Chief Financial Officer Jamie Pierson. This gimmick let them collect a severance package that included stock due to their “termination.” The board claimed they needed a more “traditional compensation package” going forward.
Welch was awarded a severance package that included stock shares worth $6.2 million at current valuation and Pierson received stock worth about $4 million. The filing with the Security and Exchange Commission (SEC) did not report whether salaries were changed under the new agreement, but the “traditional compensation” surely means a fat raise. In 2013, Welch got $2,170.630 and Pierson got $1,999,223. YRC’s drivers, dock workers, clerks and mechanics would also like a “traditional compensation” package!
UPDATED January 5, 2015: YRCW has issued a response to media reports on the two execs which states in part that, “The CEO and CFO did not receive any severance pay in association with the cancellation of their employment agreements; they simply entered into severance agreements that would dictate terms in the event a termination happened at some point in the future.” So it appears those severance payments are delayed.