Forward Air secures permanent CFO position after first-quarter setbacks

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Brief description of the dive:

Forward Air announced on July 3 that Jamie Pierson has been appointed as chief financial officer, less than two months after his interim appointment.
In addition, the LTL carrier has named James Faught as chief accounting officer. He and Pierson are former executives of bankrupt carrier Yellow Corp.
CEO Shawn Stewart said the appointments to the executive team add needed leadership as the company continues to integrate Omni Logistics.

Diving Insight:

Cutting costs is a priority for Forward Air as the company continues to integrate Omni Logistics after a tumultuous acquisition that led to layoffs and departures in the C-Suite. The costs of combining operations contributed to a 239% year-over-year drop in the company’s Q1 profit.

Forward Air is also considering selling irrelevant assets as part of a strategy to quickly return the company to profitability. In January, it completed its acquisition of Omni after raising concerns and facing a lawsuit.

Now Stewart, who took over as CEO in April, will focus on developing a plan with Pierson and Faught to strengthen Forward Air’s finances.

“The expansion of our leadership team is instrumental in helping us navigate the financial integration of Forward Air and Omni Logistics and create a path to long-term financial success,” he said.

Pierson was named interim CFO in May when Forward Air announced that Rebecca Garbrick was stepping down. The company conducted a nationwide search for a CFO, but Pierson was also considered.

According to regulatory filings, Pierson’s full-time employment comes with a base salary of $625,000 and an annual prorated bonus for the year set at 75% of his base salary, up to a maximum of 200% of his base salary.

According to his LinkedIn profile, Pierson served as executive vice president and chief financial officer of Yellow Corp. from November 2011 to December 2016, and then returned to YRC Worldwide as a board member and executive vice president and chief financial officer from December 2019 to November 2020.

Faught, whose appointment was effective July 3, most recently served as chief financial officer at EVO Transportation, a position he has held since August 2023, according to his LinkedIn profile. Before that, he spent more than five years in leadership roles at Yellow Corp., including as chief accounting officer, vice president/controller and director of financial reporting.

Regulatory filings show that Faught will receive a base salary of $350,000 and is entitled to an annual bonus for 2024, prorated from his base salary, equal to 35% of his base salary.

Both will also receive stock options.