Landstar System has named Frank Lonegro, a former railroad executive, to replace retiring CEO and President James Gattoni next year, the company announced Monday.
Lonegro, the EVP and CFO of Beacon Building Products, who previously worked at CSX for nearly 20 years, will take over Feb. 2. Gattoni will transition into a special adviser role and step down from the board after the company’s Q4 earnings call on Feb. 1, before retiring in July.
“Frank’s broad financial, operational and technology leadership at large, publicly traded organizations make for an outstanding fit at Landstar,” Landstar Chairman of the Board Diana Murphy said in the release.
Lonegro will receive a base salary of $800,000; a potential bonus each year that could be that same amount; a signing bonus of $2 million in restricted stock that vests on one- and two-year work anniversaries; $800,000 in cash “for forgoing a 2023 bonus with his former employer,” according to a securities filing Tuesday.
He’ll also be eligible to receive other multimillion-dollar performance-related restricted stock units.
For Landstar, the change in leadership will mark a new era, as Gattoni has presided at the helm for nearly a decade, having joined on Dec. 29, 2014. He also served as CFO there, among other roles. Gattoni started with Landstar as corporate controller in 1995.
The transition in Landstar’s C-suite hasn’t been limited to CEO. VP and Chief Commercial Officer Rob Brasher resigned from his executive roles in February and agreed to serve in a similar special adviser role until June 30, 2024.
Gattoni noted the merits of his incoming successor, including Lonegro’s potential to work with owner-operators, which the company refers to as business capacity owners. As of Sept. 30, the company had over 9,400 exclusive contracts with such workers.
“Frank is an experienced, solutions-oriented leader,” Gattoni said in the release. “He understands the fast-paced freight transportation industry, the critical importance of a safety-first culture and our commitment to the long-term success of Landstar agents, BCOs and other third-party capacity providers to continue to drive our growth.”