Marten Transport has implemented salary reductions for six key executives, while maintaining their other forms of compensation. According to a filing with the Securities and Exchange Commission, the truckload carrier has cut the salaries of four executives by 7.5%. These executives include Executive Chairman Randolph Marten, CEO Timothy Kohl, CFO and Executive Vice President James Hinnendael, and President Douglas Petit. Chief Operating Officer Adam Phillips and Executive Vice President and Chief Technology Officer Randall Baier each saw a 5% salary decrease.
The SEC filing noted that these salary cuts are temporary and do not affect other compensation types. The company stated that these measures are part of its “cost reduction initiatives” aimed at addressing the significant challenges posed by the freight market recession, including oversupply, weak demand, and rising operational costs.
All six executives were included in Marten’s latest proxy statement, which highlights the company’s highest-paid executives. In 2023, their base salaries were approximately 4.4% higher than in 2022. However, salary figures for Phillips and Baier from 2022 were not available, as Phillips joined Marten in late 2023 and Baier in mid-2022.
The respective 2023 and 2022 salaries were as follows: Marten at $811,077 (up from $776,998), Kohl at $744,654 (up from $713,243), Hinnendael at $408,538 (up from $391,346), and Petit at $397,539 (up from $380,653). Phillips earned $288,860, while Baier received $266,576. Notably, none of the executives received bonuses in 2023. Stock or option awards for the executives ranged from $61,470 for Phillips and Baier to $359,169 for Marten.
In the company’s second-quarter earnings report, Marten’s truckload activities net of fuel surcharge revenue showed an operating ratio of 98.8%, compared to 90.6% in the same quarter of 2022. Revenue declined to $96 million, down from $101.3 million a year earlier, with average revenue per tractor per week falling to $4,093 from $4,472.
Marten noted in its earnings statement that it has not agreed to any rate cuts since August 2023, a point reiterated in both its first and second-quarter reports. Over the past year, Marten’s stock has decreased by about 12.3%, with a modest increase of 2.25% in the last three months, while the overall stock market, as represented by the S&P 500, has risen approximately 7.6%.
