Dive Brief:
- Hub Group appointed four new directors in a shakeup of its board where three members were removed and three more resigned, according to a regulatory filing.
- The move follows shifting company leadership that saw David Yeager return as chairman and CEO last month as the Oak Brook, Illinois-based logistics company continues work to restate its financial results dating back to 2023 due to accounting missteps.
- The company in a statement Friday did not specify what led to the board changes but indicated the new members bring valuable perspectives and relevant expertise to the board’s oversight and company management. “They intend to work constructively and collaboratively with the continuing directors to advance the best interests of Hub Group and all of its stakeholders,” Yeager said in the press release.
Dive Insight:
The Yeager family, who represent controlling interest in the company’s outstanding common stock, agreed to remove board members Michael Flannery, Peter McNitt and Gary Yablon from the Board without cause, the press release said.
The changes to the company’s board do not affect recent leadership changes, which saw Philip Yeager, David’s son, appointed to president and vice chairman and the naming of Patrick O’Donnell as special advisor and CFO-elect, the press release said. Todd Heeter, who was appointed interim CFO in May, will continue with the company until it completes its financial review, which the company expects to finish before year’s end.
According to his LinkedIn profile, Flannery, a senior advisor and former CEO at Duchossois Capital Management, had been on Hub Group’s board since April 2022. McMitt, retired vice chair of BMO Harris Bank and a director of Old Republic, had been a Hub Group board member since April 2017. Yablon, managing partner at Impala Asset Management, was appointed to Hub Group’s board in May 2022, per a regulatory filing.
The board members who resigned Oct. 1 included Mary Boosalis, Jenell Ross and Martin Slark. Boosalis was president and CEO of Premier Health at the time of her board appointment in 2018, while Ross, president of Bob Ross Auto Group, was appointed in May 2020. Slark, who retired as CEO of Illinois-based electronics manufacturer Molex in November 2018, has been a Hub Group board member since January 1996.
The company provided no information for the three board members’ resignations.
The four new board members, whose appointments were effective Oct. 1, bring a mix of business, financial and legal expertise, according to the press release. Among the new board appointees is Thomas White, who served as SVP, CFO and treasurer of Hub Group from May 2002 to March 2007, according to his LinkedIn profile.
The other appointees include Gregory Bunch, who was adjunct professor of entrepreneurship at the University of Chicago Booth School of Business for nearly 20 years and has operated a consultancy and several businesses; Thomas Fitzgerald is a retired partner with the law firm Winston Taylor; and Thaddeus Malik, a former partner at the law firm of Paul Hastings, is president and principal of S2T Solutions.
The company’s board now has seven directors, including David Yeager as chairman and Phillip Yeager as vice chairman as well as Bunch, Fitzgerald, Malik and White. James Kenny, who has served on Hub Group’s board since May 2016, will continue his role as a director, the press release said.
Hub Group said its board will appoint a new lead independent director soon and will also reconstitute its standing committees.
