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Landstar System has named Frank Lonegro, a former railroad executive, to replace retiring CEO and chairman James Gattoni next year. the company announced on Monday.
Lonegrothe EVP and CFO of Beacon Building Products, who previously worked at CSX for nearly 20 years, will take over on February 2. Gattoni will move into a special advisor role and step down from the board after the company’s fourth-quarter earnings call on Feb. 1, before retiring in July.
“Frank’s broad financial, operational and technology leadership across large publicly traded organizations is an excellent fit for Landstar,” Landstar Chairman Diana Murphy said in the release.
Lonegro will receive a base salary of $800,000. a potential bonus each year that could be the same amount. a $2 million signing bonus in restricted stock available at one- and two-year job anniversaries; $800,000 in cash “to waive his 2023 bonus with his former employer,” according to securities deposit Tuesday.
He will also be entitled to receive other several million dollars performance-related restricted stock units.
For Landstar, the change in leadership will mark a new era, as Gattoni has been at the helm for nearly a decade, having joined on December 29, 2014. He also served as CFO there, among other roles. Gattoni started with Landstar as a corporate auditor in 1995.
The transition to By Landstar The C-suite was not limited to the CEO. Vice President and Chief Commercial Officer Rob Brasher stepped down from his executive duties in February and agreed to serve in a similar capacity as a special advisor until June 30, 2024.
Gattoni noted the advantages of his next successor, including Lonegro’s ability to work with owner-managers, who the company refers to as owners of entrepreneurial capacity. As of September 30, the company was out of business 9,400 exclusive contracts with such workers.
“Frank is an experienced, solutions-oriented leader,” Gattoni said in the release. “He understands the fast-paced trucking industry, the critical importance of a safety-first culture and our commitment to the long-term success of Landstar’s agents, BCOs and other third-party capacity providers to continue to drive our growth.”