William B. Cassidy | Sep 16, 2011 8:52AM EDT
Trucking giant YRC Worldwide disputed claims that members of its new board of directors will be paid more than members of its last board.
A report that its new directors will receive cash retainers $25,000 higher than those awarded to directors last year led to protests from employees and union officials.
Teamster presidential candidate Sandy Pope attacked the reported pay increases, calling them an insult to YRC workers who agreed to a 15 percent wage cut.
In a letter to the Kansas City Business Journal Wednesday, YRC Worldwide CEO James L. Welch said the new directors would get less pay than their predecessors.
The previous board, which was replaced in July when YRC Worldwide completed a financial restructuring, did not receive expected stock compensation, Welch wrote.
In April, the old board approved an extra $80,000 cash payment to each director in lieu of the stock, as well as another $80,000 for the next fiscal year, paid in May.
The current board members will receive a $75,000 cash retainer, along with bonuses, according to the company’s Aug. 31 SEC filing.
Overall, the new board has taken a 69 percent reduction in cash compensation, and a 27 percent cut in total compensation, Welch wrote the business journal.
“Total director compensation is still below the compensation of the old board and below the average for a company our size,” Welch said in his letter.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc
