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Several major trucking companies have separated their chairman and CEO positions, handing the responsibilities to separate executives rather than one top official, as many companies in trucking and other industries do.
Werner Enterprises, Prime Inc. and Estes Express Lines are among several companies that have separated the roles by promoting presidents from within — while keeping their CEOs in the top job.
The reasoning behind such a move usually varies by company. However, two trucking executives who have held both job titles shared their insights with Trucking Dive about the requirements of each role.
Many trucking companies view the president’s job as closer to a COO than a CEO: more closely directing and monitoring day-to-day operations than strategizing and acting as the company’s public face.
Keeping one CEO in place while promoting another to Chairman can help maintain stability while choreographing a future leadership transition — or simply allow a company to reward high-performing talent with an executive position.
Immediately following the announcement of the elevation of Darryl Hopkins to President, the founder of Prime Inc. Robert Low insured workers: “That doesn’t mean I’m going anywhere. I’m still CEO.”
But how and why does each company divide up job titles and responsibilities? “It depends on the company and the situation,” ArcBest President and CEO Judy McReynolds told Trucking Dive in an interview.
“A CEO, in my opinion, is really … someone who has the ultimate responsibility.”
Judy McReynolds
Chairman, President and CEO of ArcBest
While McReynolds holds all three titles at the parent company, she noted Seth Runser’s work as president of ABF Freight, the company’s 100-year-old LTL flagship. Larger companies with subsidiaries often organize their leadership structure this way, he pointed out.
“There are times when it makes sense,” McReynolds said. “But a CEO, in my opinion, is really a role designed for someone who has ultimate responsibility for what they do.”
XPO’s Mario Harik offered a similar view of the two roles in a trucking business.
“Where the CEO would obviously oversee the entire company, the strategy and all these different stakeholders,” Harrick said, “the company president or COO would focus on day-to-day operations and make sure the execution of the plan is going smoothly. ».
Before taking over as CEO from XPO founder Brad Jacobs, Harrick was president of LTL.
Now almost a pure LTL rather than a conglomerate, the carrier uses the title of chairman for top officials in its eastern and western divisions. Dave Bates, whom XPO hired as COO from Old Dominion Freight Line last April, is the company’s chief operating officer.
“He is fully integrated into our operation and we are very grateful to have him on the team,” Harrick said.