Kevin Beth
Hub GroupAbout Kevin Beth
Kevin W. Beth, age 50, is Executive Vice President, Chief Financial Officer, and Treasurer of Hub Group, appointed January 1, 2024; he joined Hub Group in 2003 and is a CPA with a B.S. in Accounting from the University of Illinois at Urbana‑Champaign . Company performance in 2024 (during his CFO tenure) included net income of $103,993k, EBITDA as a percent of gross margin of 63.8%, and a cumulative TSR index value of $173.72 for a $100 base investment, reflecting mixed profitability in a soft demand environment .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Hub Group, Inc. | EVP, Chief Financial Officer & Treasurer | 2024–present | Oversees financial activities, acquisitions, IR, and banking relationships . |
| Hub Group, Inc. | EVP & Chief Accounting Officer | 2020–2023 | Transformed financial systems; led accounting through M&A integrations and new standards . |
| Hub Group, Inc. | Controller; Assistant Treasurer | 2007– | Advanced corporate controllership and treasury functions . |
| Hub Group, Inc. | Corporate Controller | 2003–2007 | Built controllership capabilities post joining from audit/corporate accounting roles . |
Fixed Compensation
| Metric | 2024 |
|---|---|
| Base Salary ($) | $425,000 |
| Target Bonus (% of salary) | 60% |
| Actual Annual Cash Incentive ($) | $118,830 |
| All Other Compensation ($) | $23,323 (401(k) match $10,350; life insurance $223; DCP match $12,750) |
Performance Compensation
| Component | Metric | Weighting | Target | Actual/Payout | Vesting |
|---|---|---|---|---|---|
| Annual Cash Incentive | Diluted EPS | 80% (for non-CEO execs) | Threshold ≈ $1.68; Target ≈ $2.13; Max ≈ $2.58 | 2024 EPS achieved $1.91 → 52% payout on EPS component | Cash, annual |
| Annual Cash Incentive | Personal goals | 20% (varies by role) | Not disclosed | Not disclosed | Cash, annual |
| LTI – Performance Award (PA) | EBITDA as % of gross margin (3‑yr) | 50% of LTI mix | Threshold 0%; Target 100%; Max 200% | 2022 cycle result exceeded 56% → paid 200% on Jan 2, 2025 (K. Beth earned 8,312 shares) | Cliff vest at 3 years |
| LTI – Time‑Based RS (RSA) | Service time | 50% of LTI mix | N/A | N/A | Ratable annually over 5 years |
2024 grants of plan-based awards:
- RSAs: 6,030 shares; grant-date fair value $275,089 .
- Performance awards: target 6,030 shares; max 12,060 shares; grant-date fair value $275,089 .
- Annual cash incentive thresholds: Target $255,000; Max $459,000 .
Equity Ownership & Alignment
| Category | Detail |
|---|---|
| Beneficial Ownership | 67,350 Class A shares as of March 17, 2025 (less than 1% of outstanding) . |
| Hedging/Pledging | Prohibited for executives under Insider Trading Policy . |
| Ownership Guidelines | Executives (non‑CEO): minimum value ≥ 2× base salary; all NEOs in compliance as of 12/31/2024 . |
| DCP Participation | 2024 contributions: Executive $34,000; Company match $12,750; aggregate balance $395,668 . |
Outstanding equity awards (12/31/2024):
| Metric | Count/Value |
|---|---|
| Unvested RS (2024 grant) | 6,030 shares; $268,697 . |
| Unvested RS (2023 grant) | 5,694 shares; $253,725 . |
| Unvested RS (2022 grant) | 2,492 shares; $111,044 . |
| Unvested RS (2021 grant) | 1,600 shares; $71,296 . |
| Unvested RS (2020 grant) | 1,218 shares; $54,274 . |
| Unvested PA (2024 grant, assumed 176% payout as of 12/31/2024) | 10,613 shares; $472,906 . |
| Unvested PA (2023 grant, assumed 200% payout as of 12/31/2024) | 10,068 shares; $448,630 . |
| Unvested PA (2022 grant, paid at 200% on 1/2/25) | 8,312 shares; $370,383 (pre‑payout) . |
Notes: Values computed using $44.56 closing price on 12/31/2024 .
Employment Terms
| Term | Provision |
|---|---|
| Employment agreement | None; all executive officers are at-will; no employment/severance/golden parachute agreements . |
| Change-in-control (CoC) | Time-based RS vests; performance RS under 2022 LTI vests at greater of target or actual performance; DCP company match vests; no cash severance . |
| Death/Disability | Time-based RS vests; performance RS vests per plan (2022 LTI: greater of target or actual); DCP match vests . |
| Retirement | Committee discretion on vesting of time-based/2017 plan performance awards; no automatic cash severance . |
| Clawback | SEC/Nasdaq-compliant policy to recoup unearned performance-based compensation upon restatement; discretionary recoupment for misconduct applies to senior employees . |
| Tax gross-ups | None, except taxes on annual executive physicals . |
Potential payout upon CoC, death or disability (as of 12/31/2024):
| Component | Amount ($) |
|---|---|
| Accelerated restricted stock value | $2,050,954 |
| Deferred compensation (vested company match/earnings) | $22,897 |
| Total | $2,073,851 |
Additional Governance and Signals
- No Rule 10b5‑1 or non‑Rule 10b5‑1 trading arrangements adopted, modified, or terminated in Q1 2024 and Q3 2025 (disclosure covering officers) .
- 2024 Say‑on‑Pay approval exceeded 98%; Compensation Committee reviewed results and made no program changes directly due to the vote .
- Compensation Peer Group (used for benchmarking) included ArcBest, GXO, JB Hunt, Knight‑Swift, Landstar, Old Dominion, Ryder, RXO, Saia, Schneider, Werner .
Company Performance Context (for incentive alignment)
| Measure | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| TSR index (Company, $100 base) | 111.11 | 164.21 | 154.93 | 179.22 | 173.72 |
| Net Income ($000) | 73,559 | 171,474 | 356,948 | 167,528 | 103,993 |
| EBITDA as % of Gross Margin | 54.0% | 61.5% | 70.6% | 70.6% | 63.8% |
2025 outlook (management guidance): EPS $1.80–$2.05; revenue $3.6–$3.8 billion; capex $40–$50 million .
Investment Implications
- Pay-for-performance alignment: Annual incentives for Beth are heavily tied to EPS (80%) with personal goals (20%), and LTI awards are split 50/50 between time-based and performance-based shares tied to EBITDA as a % of gross margin—metrics demonstrated to be material to Hub’s profitability and cash generation .
- Event-driven considerations: No cash severance and no employment contracts reduce golden parachute risk; however, CoC triggers accelerate equity vesting, resulting in an estimated ~$2.07M value for Beth, which could contribute to event-driven share overhang if a transaction occurs .
- Alignment safeguards: Ownership guidelines (≥2× salary), prohibition on hedging/pledging, and an SEC/Nasdaq-compliant clawback policy strengthen alignment and mitigate governance risk; Beth is in compliance with ownership requirements as of year-end 2024 .
- Selling pressure/retention: Recent filings disclose no adoption/modification of trading plans by officers, and Beth’s 2024 bonus payout reflected a 52% EPS achievement in a soft cycle, but the 2022 LTI paid at 200%—a signal that multi‑year operational execution still supports sizable equity payouts; retention risk is moderated by meaningful unvested equity and guideline requirements .