Seth Runser
ARCBEST CORP /DE/About Seth Runser
Seth K. Runser, age 40, is President of ArcBest since August 1, 2024; he previously served as President of ABF Freight since July 2021, Vice President – Linehaul Operations (Aug 2019–Feb 2021), Chief Operating Officer (Feb–Jun 2021), and Regional Vice President – Operations (Mar 2016–Jul 2019). He joined the company in 2007 as a management trainee and holds a B.B.A. in Marketing from Kent State University . Company performance metrics tied to his incentives include Adjusted Operating Income and Adjusted ROCE for annual bonuses (60%/40% weighting in 2024) , and three-year Adjusted ROCE and Relative TSR for cash long-term incentives; the 2022–2024 C-LTIP paid 172.4% of target on outcomes of 23.46% average Adjusted ROCE and 31.6th percentile Relative TSR . In 2023, AIP measured $275.5M Adjusted Operating Income and 20.1% Adjusted ROCE, combining to pay 162.75% of target .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ArcBest | President | Aug 2024–present | Elevated to President; compensation targets aligned to enterprise metrics; target L-T cash incentive set at $600,000 starting 2025 . |
| ABF Freight (ArcBest subsidiary) | President | Jul 2021–Jul 2024 | Led renewal of a five-year union agreement; delivered eight quarters of record results; improved profitability and productivity; added 500+ doors since 2021 . |
| ABF Freight | Chief Operating Officer | Feb–Jun 2021 | Operational leadership during transition to ABF presidency . |
| ABF Freight | VP – Linehaul Operations | Aug 2019–Feb 2021 | Managed network efficiency and linehaul operations . |
| ABF Freight | Regional VP – Operations | Mar 2016–Jul 2019 | Oversaw regional operations; earlier roles included operations supervisor, training specialist, and service center manager . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Arkansas Trucking Association | Board Member | Disclosed 2024 | Industry visibility and network in trucking/logistics; supports stakeholder engagement . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $437,750 | $475,000 | $526,535 (earned); base rate moved to $575,000 upon promotion, reflected annualized at 12/31/24 |
| Annual Target Incentive (% of Salary) | Not disclosed | 75% | 75% pre-promotion; increased to 80% effective Aug 1, 2024 |
| 2024 RSU Target Grant Value ($) | — | — | $272,000 |
| 2024–2026 C-LTIP Target Value ($) | — | — | $408,000 (based on pre-Presidency role) |
Summary Compensation (Reported)
| Component ($) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | $437,750 | $475,000 | $526,535 |
| Stock Awards (RSU grant-date fair value) | $321,358 | $319,902 | $269,142 |
| Non-Equity Incentive Comp (AIP + C-LTIP earned) | $1,191,062 | $1,204,797 | $696,288 |
| Change in Pension Value & NQ Deferred Earnings | — | — | — |
| All Other Compensation | $29,648 | $28,060 | $24,333 |
| Total | $1,979,818 | $2,027,759 | $1,516,298 |
Performance Compensation
Annual Incentive Plan (AIP) Structure
| Metric | Weighting | Rationale |
|---|---|---|
| Adjusted Operating Income | 60% | Reinforces emphasis on profitable growth . |
| Adjusted ROCE | 40% | Aligns capital efficiency with broad S&P 500 benchmark over time . |
2023 AIP Performance Results and Payouts
| Measure | Result | Payout Factor |
|---|---|---|
| Adjusted Operating Income | $275.5M | 25.5% (component) |
| Adjusted ROCE | 20.1% | 300% (component) |
| Combined (50/50 weight) | — | 162.75% of target |
| Executive | 2023 Target AIP ($) | 2023 Actual AIP ($) |
|---|---|---|
| Seth K. Runser | $356,250 | $579,797 |
2024 AIP Earned (paid Jan 2025)
| Executive | 2024 AIP Earned ($) |
|---|---|
| Seth K. Runser | $135,988 |
Cash Long-Term Incentive Plan (C-LTIP)
| Performance Period | Metrics | Weighting | Outcome | Payout |
|---|---|---|---|---|
| 2022–2024 | Adjusted ROCE | 60% | 23.46% (3-yr avg) | Contributed to 172.4% aggregate payout . |
| 2022–2024 | Relative TSR | 40% | 31.6th percentile | Contributed to 172.4% aggregate payout . |
| Executive | 2022–2024 C-LTIP Target ($) | 2022–2024 C-LTIP Paid ($) |
|---|---|---|
| Seth K. Runser | $325,000 | $560,300 |
2024–2026 C-LTIP Goal Structure (Payout Grid)
| Relative TSR Percentile | % of Target Earned | Adjusted ROCE Achieved | % of Target Earned |
|---|---|---|---|
| <25th | 0% | <9% | 0% |
| 25th (threshold) | 25% | 9% (threshold) | 50% |
| 50th | 100% | 14% | 100% |
| ≥75th | 250% | ≥19% | 250% |
RSU Awards and Vesting
| Grant Date | Units (Runser) | Vesting Schedule | Notes |
|---|---|---|---|
| May 6, 2022 | 1,367 | 1/3 on May 6, 2023; 1/3 on May 6, 2024; final on May 6, 2025 | 3-year ratable vesting . |
| May 5, 2023 | 2,467 | 1/3 on May 5, 2024; 1/3 on May 5, 2025; final on May 5, 2026 | 3-year ratable vesting . |
| May 7, 2024 | 2,325 | 1/3 on May 7, 2025; 1/3 on May 7, 2026; final on May 7, 2027 | Grant-date fair value $115.76; RSUs time-vested; no dividends . |
| 2024 RSU Vesting/Exercises | Shares Acquired on Vesting | Value Realized ($) |
|---|---|---|
| Seth K. Runser | 14,700 | $1,723,442 |
| Unvested RSUs at 12/31/24 | Units | Market Value ($) |
|---|---|---|
| 2022 grant | 1,367 | $127,568 (at $93.32) |
| 2023 grant | 2,467 | $230,220 (at $93.32) |
| 2024 grant | 2,325 | $216,969 (at $93.32) |
None of the Named Executive Officers held stock option awards during 2024 .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 8,278 shares; less than 1% of outstanding . |
| Shares Outstanding (ref) | 23,168,031 shares (as of Feb 24, 2025) . |
| RSUs scheduled to vest within 60 days (as of Feb 24, 2025) | None for Runser . |
| Stock Ownership Guidelines | 3x base salary for NEOs; selling restricted until compliance achieved . |
| Compliance Status | As of April 2024, all NEOs met/exceeded ownership multiple except the CFO (Beasley); implies Runser in compliance . |
| Hedging/Pledging | Prohibited; mitigates misalignment and trading risk . |
| Equity Grant Practices | Fixed-dollar RSU awards; grant dates five business days post quarterly earnings release; RSUs rounded to nearest 25 shares . |
Employment Terms
- No individual employment contracts or severance arrangements beyond plan terms; terminations generally forfeit unvested RSUs and unpaid incentives unless retirement, death, disability, or Committee discretion .
- Change-in-control plan uses a double-trigger: if terminated without cause or for good reason within 24 months of a CIC, RSUs fully vest; AIP and C-LTIP prorate to measurement period completion; COBRA cash payment equal to 24 months of then-current medical/dental rates; Cash severance equals 1x base salary plus 1x average annual cash incentive (CEO is 2x) .
- No excise tax gross-ups; “best-net” calculation determines whether to reduce benefits to avoid 280G excise or pay full benefits with taxes borne by executive .
- Restrictive covenants: non-solicit of customers/clients/employees for 12 months post-termination under CIC plan; confidentiality obligations; plan-level forfeiture for acts of misconduct; competitive employment may void certain benefits under legacy plans .
- Clawback policy: compliant with Nasdaq/SEC rules, recoups erroneously awarded incentive compensation regardless of fault, and allows cancellation/forfeiture upon specified misconduct (fraud, theft, disclosure of confidential information, solicitation, unfair competition, etc.) .
Performance & Track Record
- As ABF Freight President, Runser navigated the pandemic, successfully renewed a five-year union agreement, delivered eight quarters of record results, and improved profitability and productivity; he led a long-term facility plan adding over 500 doors since 2021 .
- The 2022–2024 C-LTIP outcome reflects strong capital efficiency (23.46% average Adjusted ROCE) and mid-range relative TSR (31.6th percentile), producing a 172.4% payout; Runser personally received $560,300 vs. a $325,000 target for that cycle .
- Section 16(a) compliance was reported as satisfactory for 2024, indicating timely reporting by insiders .
Compensation Committee Analysis and Say-on-Pay
- Compensation Committee composition (2024): Kathleen D. McElligott (Chair), Salvatore A. Abbate, Eduardo F. Conrado, Michael P. Hogan; independent consultant Meridian engaged; no conflicts of interest .
- Say-on-Pay support: approximately 97% in 2024 and ~88% in 2023; the Committee made no program changes in response to those votes .
Compensation Peer Group
- For 2025–2027 C-LTIP Relative TSR, ArcBest expanded to a larger peer set including CH Robinson, CSX, FedEx, Hub Group, JB Hunt, Knight-Swift, Landstar, Norfolk Southern, Old Dominion, RXO, Ryder, Saia, Schneider, TFI International, Union Pacific, UPS, Werner, and XPO, among others, to mitigate volatility impacts .
Investment Implications
- Alignment: Heavy use of multi-year metrics (Adjusted ROCE and Relative TSR) and time-vested RSUs with strong stock ownership rules and explicit prohibitions on hedging/pledging create robust alignment with shareholders and dampen misaligned trading behavior .
- Retention: Three-year RSU vesting and cash L-TIP cycles plus double-trigger CIC protections (COBRA and cash severance) support retention; absence of gross-ups and “best-net” provisions reflect shareholder-friendly design .
- Near-term vesting cadence: Material RSU vesting occurs annually each May (2025–2027), with value realized on vesting events (e.g., $1.72M in 2024 for Runser), a potential consideration for liquidity/tax withholdings around vest dates; the policy restricts sales until ownership guidelines are met, which Runser has satisfied .
- Execution track record: Documented operational improvements and record performance at ABF Freight during Runser’s tenure, coupled with strong ROCE outcomes in the 2022–2024 L-TIP cycle, indicate demonstrated value creation in logistics operations .