Steven Leonard
ARCBEST CORP /DE/About Steven Leonard
Steven C. Leonard is Chief Operating Officer – Asset-Light Logistics (effective February 2025); previously Chief Commercial Officer and President, Asset-Light Logistics (March 2023–January 2025), and Chief Sales and Customer Engagement Officer (April 2020–March 2023). He joined ArcBest in 2001 and has held roles spanning pricing, strategic planning, and divisional leadership; he holds a B.S. in Business Administration from the University of Arkansas, age 50, and plans to retire in June 2025 after a 24-year career at the company . Company performance metrics relevant to executive incentives include 2024 Adjusted Operating Income of $208.9 million (below threshold) and Adjusted ROCE of 12.38% (payout 83.8% for that metric), yielding a 33.52% AIP payout; longer-term pay-versus-performance data show Adjusted ROCE of 12.4% (1-year) and 23.5% (3-year) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ArcBest | Chief Operating Officer – Asset-Light Logistics | Feb 2025–present | Oversees asset-light logistics operations; organizational alignment to drive growth . |
| ArcBest | Chief Commercial Officer & President, Asset-Light Logistics | Mar 2023–Jan 2025 | Led commercial and asset-light business; revenue velocity and customer alignment focus . |
| ArcBest | Chief Sales & Customer Engagement Officer | Apr 2020–Mar 2023 | Led sales and customer experience; strengthened go-to-market and engagement . |
| ArcBest | Vice President – Customer Solutions | Jan 2017–Mar 2020 | Built customer solutions capabilities and value creation frameworks . |
| Panther Premium Logistics (ArcBest subsidiary) | Vice President – Global Forwarding | Nov 2014–Dec 2016 | Led forwarding operations; expanded asset-light capabilities . |
| ArcBest (U-Pack and corporate) | Manager/Director/Divisional VP roles (Quotation Services, TimeKeeper Pricing, Strategic Planning, Divisional VP) | 2001–2014 | Pricing innovation and strategic planning underpinning later asset-light growth . |
External Roles
No external public company directorships or outside roles disclosed for Steven Leonard in company filings .
Fixed Compensation
Not disclosed for Steven Leonard in 2024–2025 proxies (he was not included among Named Executive Officers, whose base salaries and target incentives are detailed) . Company policy sets NEO base salaries around the 50th percentile of peers, reviewed annually with consultant input .
Performance Compensation
Annual Incentive Plan (AIP) – 2024 Results
| Metric | Weighting | Target / Threshold / Max | Actual 2024 | Payout | Payment Timing |
|---|---|---|---|---|---|
| Adjusted Operating Income | 60% | 0% below threshold; 50% threshold; 100% target; 250% max | $208.9 million (below threshold) | 0% for this metric | Paid early 2025 per plan approval . |
| Adjusted ROCE | 40% | 0% below threshold; 50% threshold; 100% target; 250% max | 12.38% (between threshold and target) | 83.8% for this metric | Paid early 2025 per plan approval . |
| Total AIP Payout | — | — | — | 33.52% of target (weighted) | Paid early 2025 . |
Cash Long-Term Incentive Plan (C-LTIP) – 2024–2026 Structure
| Metric | Weighting | Payout Curve | Performance Period | Max Payout |
|---|---|---|---|---|
| Adjusted ROCE (3-year average) | 60% | 0% <9%; 50% at 9%; 100% at 14%; 250% ≥19% | 2024–2026; pays early 2027 | 250% of target . |
| Relative TSR (vs peer group) | 40% | 0% <25th; 25% at 25th; 100% at 50th; 250% ≥75th percentile | 2024–2026; pays early 2027 | 250% of target . |
Long-Term Equity – RSUs
| Award Type | Typical Grant Timing | Vesting | Dividends | Notes |
|---|---|---|---|---|
| Time-vested RSUs | 5th business day after earnings release (committee approves in Q2) | Three-year ratable (1/3 annually) | No dividends to NEOs | RSUs accelerate upon death, disability, normal retirement; and upon qualifying CIC termination or if awards not assumed/substituted at CIC . |
Equity Ownership & Alignment
| Policy/Status | Detail |
|---|---|
| Stock ownership guidelines | NEOs must hold stock equal to 3× base salary; CEO 5×; sales allowed only after attaining guideline; RSUs and stock owned count toward compliance . |
| Compliance status | As of April 2024, all NEOs met/exceeded requirements except the newly appointed CFO (must retain shares until compliant). Steven Leonard’s compliance not disclosed (not an NEO in 2024) . |
| Hedging/pledging | Company Insider Trading Policy prohibits hedging, monetization transactions, short sales, and pledging for officers and directors; company has no outstanding stock option awards . |
| Options exposure | None; company did not grant stock options to NEOs in the last fiscal year . |
Employment Terms
| Item | Terms (As Disclosed) |
|---|---|
| Employment agreements | None for Named Executive Officers (no standalone employment contracts) . |
| AIP/C-LTIP termination treatment | For retirement, death or disability: prorated AIP and C-LTIP based on months completed; paid at end of measurement period; must meet minimum participation periods . |
| RSU termination treatment | Full vesting upon retirement (age 65), death or disability; forfeiture upon other termination absent committee discretion; RSUs fully vest on qualifying CIC termination or if awards not assumed/substituted at CIC . |
| Change-in-control (CIC) severance | If terminated without cause or for good reason within 24 months of CIC: for non-PEO NEOs, cash severance equals 1× base salary + 1× average annual cash incentive over the prior three years; medical premiums paid as a lump sum equal to 24 months at then-current COBRA rate; RSUs fully vest and are distributed promptly . |
| 280G treatment | Best-net calculation to avoid suboptimal excise tax outcomes; potential reduction to avoid 4999 excise tax if beneficial . |
| Restrictive covenants | Post-termination non-solicit of customers/clients/employees for 12 months under CIC Plan; forfeiture conditions under DSA, Ownership Incentive Plan, and Executive Medical Policy for misconduct or competitive employment; confidentiality obligations . |
| Clawback policy | Robust clawback compliant with Nasdaq listing standards; recoupment for erroneously awarded incentive compensation upon restatement, errors, or misconduct; applies broadly to cash and equity awards . |
Investment Implications
- Near-term transition risk: Leonard plans to retire in June 2025, which may create execution risk in asset-light logistics operations during leadership handoff; management announced organizational updates to mitigate impact .
- Pay-for-performance emphasis: Incentives are strongly tied to Adjusted ROCE and Relative TSR (C-LTIP 60%/40% weighting) and to annual Adjusted Operating Income and ROCE; 2024 AIP paid only 33.52% of target due to OI below threshold, highlighting sensitivity to profitability and capital efficiency .
- Alignment and selling pressure: Three-year RSU vesting and strict anti-hedging/pledging policy reduce short-term selling pressure; stock ownership guidelines reinforce alignment, though Leonard’s specific ownership level is not disclosed in the proxy .
- Governance protections: No employment agreements; CIC benefits for non-PEO NEOs are capped at 1× salary+bonus average; clawback policy is robust and excise tax “best-net” calculation applies, limiting shareholder-unfriendly outcomes .