After the market closed Monday, Landstar System Inc. LSTR announced the resignation of CFO Kevin Stout, effective immediately. The filing with the Securities and Exchange Commission stated that Stout would transition into the role of special adviser to President and CEO Jim Gattoni.
Gattoni, previously CFO from 2007 to 2014, will serve as the company's principal financial officer until a replacement is found.
A spokesperson with Landstar said Stout "made a personal decision to transition out of the CFO role" and that the decision was "amicable."
The terms of Stout's new contract are set to expire on Dec. 31, 2021.
The new contract includes a noncompete agreement, prohibiting Stout from employment or a consulting arrangement with any of the company's competitors or vendors without consent. The lockup period extends to the earlier of two years beyond the termination of his new contract or Dec. 31, 2023.
Stout's new salary has been reduced to $120,000 per year and he will not be eligible for a bonus in 2021. At the discretion of the compensation committee, Stout is eligible to receive a payment of $150,000 on or around Feb. 1 in lieu of a 2020 bonus.
Stout joined Landstar as director of financial planning in 1997. He was promoted through the ranks and was eventually named CFO in 2014.
On Oct. 22, the Jacksonville, Florida-based broker reported third-quarter earnings per share of $1.61, easily outpacing analysts' forecasts, and issued fourth-quarter guidance better than the consensus estimate at the time of the report. The company's fourth-quarter expectations include a high-single-digit year-over-year increase in truck loads and a low double-digit increase in revenue per load.
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