ITEM 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS;
APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS
On February 6, 2020, management of J.B. Hunt Transport Services, Inc. (the
"Company") finalized interim succession plans involving the Company's chief
financial officer. Effective March 1, 2020, David G. Mee will retire from his
duties as executive vice president, Finance and Administration and chief
financial officer, and John Kuhlow, currently senior vice president of Finance,
controller and chief accounting officer, will assume the role of interim chief
financial officer. Mr. Mee will continue to serve as an employee and advisor to
the Company until April 1, 2020.
John Kuhlow, 49, joined the Company in 2006 as Assistant Corporate Controller.
Mr. Kuhlow currently serves as Senior Vice President of Finance, Controller and
Chief Accounting Officer. Prior to joining the Company, he was a Senior Audit
Manager for KPMG LLP. Mr. Kuhlow is a Certified Public Accountant.
Also, on February 6, 2020, the Company entered into Executive Retirement
Agreements (the "Retirement Agreements") with David G. Mee and Terrence D.
Matthews. As previously disclosed, Mr. Matthews will retire from his current
duties as executive vice president and president of Intermodal effective April
1, 2020. Mr. Matthews will continue to serve as an employee and advisor to the
Company until July 16, 2020.
Under the terms of Mr. Mee's Retirement Agreement, which will be effective as of
February 14, 2020, Mr. Mee's outstanding unvested awards of performance-based
restricted share units granted prior to January 1, 2020 will be accelerated and
will vest automatically as of April 1, 2020, without regard to performance
conditions, and he will be entitled to health insurance coverage under the
Company's health insurance plans in accordance with COBRA. The receipt of these
equity awards and benefits will be subject to Mr. Mee's compliance with certain
non-competition, non-solicitation and non-interference covenants described in
the Retirement Agreement for a specified period following his retirement. The
Retirement Agreement also includes a customary release of claims in favor of the
Company. The agreement will automatically terminate if Mr. Mee's employment with
the Company terminates for any reason prior to April 1, 2020.
Under the terms of Mr. Matthews' Retirement Agreement, which will be effective
as of February 14, 2020, Mr. Matthews' outstanding unvested awards of
performance-based restricted share units will be accelerated and will vest
automatically as of July 16, 2020, without regard to performance conditions, and
he will be entitled to health insurance coverage under the Company's health
insurance plans in accordance with COBRA. The receipt of these equity awards and
benefits will be subject to Mr. Matthews' compliance with certain
non-competition, non-solicitation and non-interference covenants described in
the Retirement Agreement for a specified period following his retirement. The
Retirement Agreement also includes a customary release of claims in favor of the
Company. The agreement will automatically terminate if Mr. Matthews' employment
with the Company terminates for any reason prior to July 16, 2020.
The foregoing summary of the terms and conditions of the Retirement Agreements
is qualified in its entirety by reference to the full text of the Retirement
Agreements with Mr. Mee and Mr. Matthews, copies of which are attached as
Exhibit 10.1 and Exhibit 10.2, respectively, and are incorporated herein by
reference.
ITEM 7.01. REGULATION FD DISCLOSURE
On February 7, 2020, we issued a news release announcing top leadership changes
involving the Company's chief financial officer. A copy of the news release is
attached as Exhibit 99.1 and is incorporated herein by reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
10.1* Executive Retirement Agreement with David G. Mee, dated February 6, 2020
10.2* Executive Retirement Agreement with Terrence D. Matthews, dated February
6, 2020
99.1 News release dated February 7, 2020, issued by J.B. Hunt Transport
Services, Inc.
104 Cover Page Interactive Data File (embedded within the Inline XBRL Document)
* Portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv) of
Regulation S-K.
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