Edward Sorg
ARCBEST CORP /DE/About Edward Sorg
Edward (“Eddie”) Sorg is ArcBest’s Chief Commercial Officer, appointed effective February 1, 2025; he joined the company in 1995 and brings 30 years of pricing and yield expertise. He holds a B.S. in Industrial Engineering from the University of Arkansas and is age 53 . Company performance context during his leadership era: 2024 revenue from continuing operations was $4.2B and diluted EPS from continuing operations was $7.28, with operating ratio improving 1.9 points year over year . Sorg has led initiatives including dynamic LTL pricing, space-based pricing, and managed solutions pricing—all aimed at optimizing yield and profitable growth .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ArcBest / ABF Freight | Chief Commercial Officer | 2025–present | Leads marketing, sales, customer support, customer experience and yield; aligns revenue engine to maximize revenue velocity and customer outcomes . |
| ArcBest | Chief Operating Officer – Asset-Light Logistics | Not disclosed | Led asset-light operations; advanced pricing methodologies for managed solutions and truckload, improving profitability . |
| ABF Freight | Vice President of Yield Management | Not disclosed | Implemented space-based pricing; deep yield discipline supporting profitable growth . |
| ABF Freight | Director of Pricing; Director of Revenue Accounting | Not disclosed | Built pricing capabilities and revenue accounting foundation enabling dynamic pricing and margin optimization . |
| ArcBest | Pricing Analyst (entry role) | 1995–Not disclosed | Early-career pricing analyst experience underpinning 30 years of yield leadership . |
External Roles
No public company directorships or external board roles for Sorg are disclosed in the 2025 proxy or the January 16, 2025 leadership 8-K .
Fixed Compensation
- Sorg’s specific base salary, target bonus percentage, and any 2024/2025 cash compensation details are not disclosed in the 2025 proxy (which covers 2024 Named Executive Officers) and were not included in the January 16, 2025 leadership 8-K .
- ArcBest’s compensation architecture for executives combines base salary (reviewed annually), annual incentive tied to Adjusted Operating Income and Adjusted ROCE, and long-term incentives (cash C-LTIP and time-vested RSUs), balancing retention with pay-for-performance .
Performance Compensation
As an executive officer, Sorg’s incentive opportunity follows ArcBest’s AIP and C-LTIP designs; individual targets for Sorg are not disclosed. 2024 company AIP outcomes:
| Metric | Weighting | Target | Actual | Payout |
|---|---|---|---|---|
| Adjusted Operating Income | 60% | Threshold/Target/Max set by Committee | $208.9M | 0% (below threshold) |
| Adjusted ROCE | 40% | Threshold/Target/Max set by Committee | 12.38% | 83.8% (between threshold and target) |
| Total AIP Payout (weighted) | — | — | — | 33.52% of target |
Long-term incentives:
- 2024–2026 C-LTIP weighting: 60% Adjusted ROCE (three-year avg) / 40% Relative TSR vs peer group; max payout 250% .
- RSUs vest ratably over three years; executives receive stock settlement at vesting or qualifying termination per plan rules .
Equity Ownership & Alignment
- Anti-hedging and pledging: Officers and directors are prohibited from hedging or pledging ArcBest stock; short sales and derivatives are disallowed .
- Clawback: A robust clawback policy applies to executive officers (including NEOs), requiring recoupment of erroneously awarded incentive compensation after a restatement and enabling cancellation/forfeiture for misconduct or errors .
- Stock ownership requirements: NEOs must hold equity equal to multiples of base salary (CEO 5x; other NEOs 3x); as of April 2024, all NEOs met or exceeded requirements except the newly appointed CFO (working toward compliance). Sorg’s individual ownership and guideline status are not disclosed .
- RSU vesting and award timing: Three-year ratable vesting; grant dates occur five business days post quarterly earnings release; no options outstanding for executives in 2024 .
Employment Terms
- No employment agreements: ArcBest has no employment agreements with Named Executive Officers; Sorg-specific contract terms are not disclosed .
- Change-in-control plan (NEO framework; applicability to Sorg not disclosed): Double-trigger severance; RSUs vest upon qualifying termination post-CIC if awards are assumed; cash severance and medical premium lump sums vary by role .
| Role | Cash Severance Multiple | Medical Premiums Lump Sum | RSU Vesting on Qualifying Termination |
|---|---|---|---|
| CEO | 2x base salary + 2x average annual cash incentive (3-year lookback) | 24 months COBRA rate | Full vesting at termination (if awards were assumed by successor) |
| Other NEOs | 1x base salary + 1x average annual cash incentive (3-year lookback) | 24 months COBRA rate | Full vesting at termination (if awards were assumed by successor) |
- Restrictive covenants: Non-solicitation and confidentiality obligations apply under the change-in-control plan and equity plans; misconduct can trigger cancellation/forfeiture of awards .
Performance & Track Record
- Pricing and yield discipline: Sorg emphasized dynamic LTL pricing to optimize profit and avoid unattractive business; he led yield strategy for “27 of your 30 years,” reinforcing price discipline and profitable growth .
- Managed solutions growth: Management highlighted a pipeline over $1B in managed solutions, with expected upside as customers resume shipping; Sorg cited ongoing growth across solutions and pricing improvements .
- Quality and claims: Sorg cited the “highest paid claim frequency” improvement and record density-adjusted load average, attributing it to “high and tight” trailer loading and network discipline, bolstering sales conversion and customer retention .
Company performance context (non-GAAP, unaudited from investor materials):
| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|
| Revenues ($B) | 2.9 | 2.8 | 2.8 | 3.8 | 5.0 | 4.4 | 4.2 |
| Operating Income ($M, Non-GAAP) | 154 | 112 | 123 | 314 | 468 | 258 | 203 |
| EPS (Non-GAAP $) | 4.05 | 2.96 | 3.28 | 8.40 | 13.52 | 7.88 | 6.28 |
GAAP reference: 2024 diluted EPS from continuing operations was $7.28; total revenue $4.2B .
Compensation Committee Analysis
- Pay-for-performance: Majority of executive pay is variable; 60% of LTIs are performance-based over 3 years; caps on AIP and C-LTIP payouts; three-year RSU vesting encourages retention .
- Governance and advisors: Independent Compensation Committee; Meridian Compensation Partners engaged; Mercer supports market analysis; annual risk assessment concluded compensation plans are not reasonably likely to have a material adverse effect .
- Peer group: 2024 peer group includes carriers and logistics peers (e.g., RXO, XPO, JBHT, SAIA, ODFL); 2025 C-LTIP TSR peer group expanded to mitigate market volatility impact .
- Say-on-pay: 2024 advisory vote received ~97% support; no program changes due to vote .
Related Party Transactions and Red Flags
- Related parties: 2024 related-party disclosure notes CFO’s brother employed at a subsidiary; no other related-party transactions requiring disclosure; none disclosed relating to Sorg .
- Risk mitigants: Prohibition on hedging/pledging; robust clawback; no option repricing; no single-trigger CIC; no tax gross-ups for excess parachute payments; no excessive perquisites .
Equity Ownership & Alignment (Company-wide policies)
- Stock ownership policy for directors: Five times annual retainers; directors restricted from selling until requirement met; 2024 review found compliance except for a 2023 joiner still in accumulation .
- NEO ownership compliance: As of April 2024, all NEOs met/exceeded multiples except the new CFO (working toward compliance). Sorg’s individual ownership and guideline status are not disclosed .
Employment Terms (Company-wide)
- Executive medical and retirement benefits: Defined contribution plan participation; legacy DSA/SBP plans are frozen; medical coverage terms for retirees; RSU settlement mechanics outlined in proxy .
Investment Implications
- Alignment and retention: Sorg’s 30-year tenure and promotion to CCO align with ArcBest’s emphasis on yield discipline and profitable growth; anti-hedging/pledging and clawback policies strengthen alignment, though Sorg’s individual equity holdings and compensation targets are not disclosed, limiting near-term analysis of selling pressure .
- Performance levers: Dynamic LTL pricing, managed solutions expansion, and quality/claims improvements are core levers Sorg influences; these support margin resilience and revenue velocity as macro conditions normalize .
- Watch items: The next proxy should disclose whether Sorg is a Named Executive Officer with reportable compensation and ownership; monitor any Form 4 filings for grant/vesting activity and potential selling pressure; CEO transition to Seth Runser in 2026 underscores continuity of yield discipline with Sorg leading commercial strategy .