Dive Brief:
- Hub Group will grant CFO-elect Patrick O’Donnell a one-time restricted stock unit award with a grant date value of $1.3 million after he takes the top finance seat, the transportation and logistics business said in a Tuesday securities filing. His compensation will also include an annual base salary of $650,000, according to the filing with the Securities and Exchange Commission.
- O’Donnell joined the Oak Brook, Illinois-based Hub from TreeHouse Foods as its CFO-elect and special adviser, and will officially begin serving as CFO after the company has filed its 10-K for the fiscal year ended Dec. 31, 2025.
- The appointment comes as the business continues efforts to restate its past three years of financial statements after discovering a $77 million accounting error, CFO Dive previously reported. The 10-K filing has been repeatedly delayed as the company has sought to address the error.
Dive Insight:
O’Donnell, 47, is also expected to receive an annual long-term incentive award “on or about” Jan. 2, 2027, with a target value of approximately $1 million, according to the filing. Fifty percent of that award will consist of RSUs, while the remaining 50% will consist of performance-based restricted stock units set to vest on the third anniversary of the grant date.
The PSUs will be subject to Hub Group’s achievement of “one or more” performance metrics established by the business over that three year period, according to the filing.
Todd Heeter, who was appointed as interim CFO four months after the departure of CFO Kevin Beth, will continue to serve in the role until the 10-K filing, leading Hub’s financial restatement efforts, according to the Monday release.
The company in its Tuesday filing also announced an amendment to its agreement with the Heeter Group, which provides CFO, CAO and strategic advisory service, related to his compensation as interim CFO. The amendment extends the consulting agreement with Heeter through April 30, 2027 and increases his monthly cash consulting fee to $175,000 from the $125,000 fee agreed upon in May, according to the Tuesday filing.
Heeter will also be entitled to receive a cash retention bonus of $1.25 million, payable after Hub Group files its annual 10-K for the year ended Dec. 31, 2025, according to the filing.
The company announced its planned CFO transition in tandem with reappointing David Yeager to the role of CEO, a position he previously held for over three decades, according to the Monday company release.
Alongside the executive leadership changes, Hub Group is still working to address its accounting error, expecting to receive a second delisting notification from the Nasdaq as its fiscal 2025 filing remains delayed. Nasdaq previously granted the company an extension to file its fiscal 2025 10-K by Sept.15, but Hub Group expects it will need additional time to do so, the company said Monday.
The business first identified it had understated purchased transportation costs and accounts payable for the first nine months of 2025 in the course of the preparation for its financial statements for that fiscal year in February, the company said at the time. The understatement totaled $77 million. The company has since announced its financials for fiscal years 2023 and 2024 are not be relied upon, CFO Dive previously reported.
In select, preliminary financial results for its first half of 2026 also shared Monday, Hub Group noted its operating results for the period were negatively impacted by incremental costs related to its accounting review and financial restatement efforts. Increased costs in fuel, rail and drayage — short distance transportation of shipping containers — negatively impacted operating results for the first half of 2026, the company said Monday.
Hub Group is “not providing a range of operating income or loss due to ongoing financial closing procedures but does anticipate reporting an operating loss for the first half of 2026 before the impact of one-time charges,” the company said.
Revenue trends through the first half of 2026 are tracking alongside the company’s expectations, according to preliminary financial results, with revenue anticipated to be between $1.7 billion to $1.8 billion for the period.
