Eric McGee
HUNT J B TRANSPORT SERVICESAbout Eric McGee
Eric McGee, age 51, is Executive Vice President of Integrated Capacity Solutions (ICS) at J.B. Hunt. He joined the company in 1998 as a National Account Service Monitor and has held senior operating roles in Highway Services before moving to lead ICS . Proxy disclosures emphasize enterprise performance metrics used to drive executive pay—operating income, revenue (ex-fuel surcharge), safety (preventable collisions), and three-year relative ROIC—rather than individual TSR/EBITDA targets for non-NEOs .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| J.B. Hunt Transport Services, Inc. | EVP, Integrated Capacity Solutions | 2025–present | Leads ICS, the brokerage/capacity platform, aligning with growth and efficiency objectives . |
| J.B. Hunt Transport Services, Inc. | EVP, Highway Services | 2023–2024 | Senior operating leadership across truckload/highway services . |
| J.B. Hunt Transport Services, Inc. | National Account Service Monitor | 1998–early career | Customer service and operations foundation . |
External Roles
No public company directorships or external roles are disclosed for McGee in the proxy .
Fixed Compensation
Not individually disclosed for McGee (not a Named Executive Officer). Company program elements for executives include base salary, annual cash bonus tied to company performance, and long-term equity awards under the Management Incentive Plan (MIP) .
- 2024 annual bonus plan: 100% tied to operating income; actual 2024 operating income ($831m) missed the target range, resulting in no annual bonus payout for NEOs (indicative of pay-for-performance discipline) .
- 2025 annual bonus plan: 70% operating income, 15% revenue (ex-fuel surcharge), 15% preventable collisions per million miles, with performance measured versus 85–115% of targets; targeted bonus levels are set by role (NEO examples provided in proxy) .
Performance Compensation
| Component | Metric | Weighting | Target Framework | Payout Mechanics | Vesting |
|---|---|---|---|---|---|
| Annual Cash Bonus (2025) | Operating Income | 70% | 85–115% of target | Threshold-to-max scale; CEO/Chairman target 150% salary; other NEOs 100% salary; safety metric measured inversely | Paid after FY results . |
| Annual Cash Bonus (2025) | Revenue ex-Fuel Surcharge | 15% | 85–115% of target | Weighted portion contributes to single payout | Paid after FY results . |
| Annual Cash Bonus (2025) | Preventable Collisions Rate | 15% | 85–115% of target | Inverse measure improves payout; weighted portion | Paid after FY results . |
| Long-Term Equity (2025 structure) | Three-Year Relative ROIC (peer group) + Operating Income CAGR modifier | 60% of RSUs | Relative ROIC vs 13-company peer; OI CAGR matrix modifies result ±20% | 0–240% vesting based on ROIC band and OI growth modifier | Single cliff at 3 years . |
| Long-Term Equity (2025 structure) | Time-Based RSUs | 40% of RSUs | N/A | Fixed vesting schedule | Annual installments over 3 years (40/40/20 in 2025; transitioning to 40/30/30 and then 33/33/33 by 2027) . |
| Long-Term Equity (2024 structure) | Operating Income-based RSUs | ~75% of RSUs | Annual OI targets per tranche | Each tranche vests only if OI goal met; otherwise forfeited | 3–10 years with annual tranches . |
| Long-Term Equity (2024 structure) | Three-Year Relative ROIC RSUs | ~25% of RSUs | Relative ROIC vs peer | 0–200% vesting based on percentile | Single cliff at 3 years . |
Peer group revisions for ROIC awards include replacements (XPO→RXO in Jul-2024; Expeditors→Werner in Jan-2025) applied retroactively to unvested ROIC grants .
Equity Ownership & Alignment
| Category | Detail | Evidence |
|---|---|---|
| Beneficial ownership (plan) | 7,396.667 shares in 401(k) post 08/04/2025 purchase | |
| Unvested RSUs (illustrative) | RSUs reported on Form 4 include 1,116 shares scheduled around 01/31/2026 and 1,673 shares around 03/31/2028 | |
| Recent insider transactions | 08/04/2025: Purchase 1,147.73 shares at $140.76; 07/28/2025: Sale 285.44 shares at $149.21 (401(k) activity) | |
| Recent insider transactions | 02/04/2025: Sale of 3,300 shares at $169.00 (Sale+OE) | |
| Pledging | No pledging for McGee listed; pledged shares disclosed for others |
Company-wide ownership guidelines require Executive Vice Presidents to hold stock equal to 3.5× base salary within 5–8 years; all covered officers are in compliance or within the permitted period . The company prohibits hedging/derivatives and restricts insider trading; pledging requires committee approval and compliance with guidelines .
Employment Terms
| Provision | Terms | Applicability | Notes |
|---|---|---|---|
| Employment contracts | No individual employment contracts or predetermined severance agreements for executives | Executives | Pay is programmatic via salary/bonus/equity . |
| Change-in-control (CIC) vesting | Double trigger required: CIC plus retirement, termination without cause, or resignation for good reason | Equity awards (MIP) | Accelerated/immediate vesting upon double trigger; committee may accelerate upon death/disability . |
| Non-compete | Two-year non-compete covenants tied to MIP awards following cessation of employment | Equity award terms | Enforceability through MIP . |
| Clawback | Dodd-Frank compliant policy to recoup excess incentive-based compensation upon restatement; broad forfeiture/recoupment rights in MIP for detrimental conduct | Executive officers | No restatements requiring recovery in 2024 . |
| Hedging/derivatives ban | Short sales and derivative transactions (options, collars, etc.) prohibited; pre-clearance required for trades or 10b5-1 plans | Directors/officers/covered employees | Insider trading policy governs securities transactions . |
| Stock ownership guidelines | CEO/President 6× salary; EVPs 3.5×; others scaled; retention policy requires holding vested shares until guidelines met | Officers/senior management | Compliance reported as met or within period . |
Investment Implications
- Alignment strong: McGee’s ongoing RSU vesting and 401(k) accumulation, combined with company ownership guidelines and hedging prohibitions, support shareholder alignment and mitigate misaligned incentives .
- Low severance windfall risk: No individual severance agreements; equity accelerates only on double-trigger CIC, reducing opportunistic payout risk while maintaining retention hooks .
- Near-term selling pressure appears modest: Reported 2025 purchases outweigh small prior sales; upcoming RSU vesting schedules (e.g., 2026/2028 tranches) are relatively small, suggesting limited supply overhang from McGee specifically .
- Pay-for-performance discipline: 2024 bonuses paid zero for NEOs due to below-target operating income ($831m vs matrix), indicating a compensation framework tied tightly to results—a positive governance signal for talent incentives across executives .