P.A.M Transportation Services Inc. doled out hefty discretionary bonuses and a 3% annual pay boost to the salaries of CEO Daniel Cushman and Chief Financial Officer Allen West in 2014, according to the carrier’s annual Proxy filing with the Securities and Exchange Commission.
Cushman earned total compensation of $1.381 million last year, a 91% gain over the $720,034 reported in 2013. His salary increased to $461,173 and his discretionary cash bonus rose 135% to $213,950 from the year-ago period. Cushman also received $470,028 in a separate cash bonus as part of the company’s short-term incentive plan enacted last year. Stock awards totaled $213,950 last year, a gain of 135% from the prior year. Lastly, Cushman received perquisites equal to $13,018 last year. This was attributed to retirement contributions and use of company-owned automobiles.
West, who was appointed to his position in June 2013, earned a total of $514,820 last year. This included a salary of $228,874, up 3% from the prior year. West earned a discretionary cash bonus of $75,000 last year, compared to $5,000 paid in 2013 — as noted West only held the position for half the year in 2013. His stock awards totaled $53,313, more than twice the $22,713 awarded in 2013. West’s separate cash bonus as part of the short-term incentive plan totaled $150,010. He also received $7,623 last year related to retirement plan contributions and use of company vehicles.
These two executives were rewarded for what turned out to be stellar 2014. The Tontitown-based carrier reported annual net income of $13.491 million for the 2014, a steady bump up from the $5.914 million reported in 2013. On a per-share basis annual earnings were $1.68 per share, compared to 68 cents for the full year in 2013.
BOARD OF DIRECTORS
Shareholders were asked in the Proxy to approve a slate of eight officers for the coming year.
Frederick Calderone, 64, vice president of Cen Tra Inc.
Daniel Cushman, 60, CEO of P.A.M.
A. Scott Davis, 52, vice chairman of Clearview International
Norman Harned, 74, retired officer with Cen Tra Inc.
Franklin McLarty, 40, CEO of RML Automotive
Manuel J. Mouroun, 87, principal shareholder of Cen Tra Inc.
Matthew Mouroun, 41, vice chairman of CenTra Inc.
Daniel Sullivan, 74, attorney/ partner Sullivan, Hincks & Conway
P.A.M. did considerable business with Cen Tra Inc. last year, which benefited four of the eight directors who are connected as investors or officers with CenTra.
During 2014, certain subsidiaries of CenTra and other companies owned or controlled by P.A.M. directors, Manuel Moroun and Matthew Moroun, paid the company a total of $15,255,822. During 2014, P.A.M. made payments to certain subsidiaries of CenTra and other companies owned or controlled by its directors, Manuel Moroun and Matthew Moroun, in the aggregate amount of $15,328,613.
These insider dealings with the Morouns are in addition to the following related-party transactions with Oakwood Financial, a company in which the Morouns also own a controlling interest. Following were the 2014 payments from P.A.M. to Oakwood.
• $515,302 insurance premiums paid on behalf of independent carriers
• $3,730,760 equipment insurance premiums paid for tractors and trailers
• $2,864,531 received payments for claims filed.
• $10,411,048 paid for commercial auto liability and general liability coverage
• $241,086 for workers compensation coverage
Manual Moroun is also consultant to the company earning $100,000 annually in a contract that was renewed in 2013 for five years.
The company reports 7,427,115 shares of outstanding common stock eligible for shareholder vote. Some 59% of the outstanding shares are held by company officers and or directors.
The largest shareholder with 4.331 million shares beneficially owned is Matthew Moroun. The second largest shareholder is institutional investor Dimensional Fund Advisors with 663,684 shares. Director Scott Davis owns 28,004 shares while Daniel Sullivan owns 23,504 shares. Other director positions include: Manual Moroun, 16,504 shares; Daniel Cushman, 7,000 shares; Allen West, 675 shares; and Frederick Calderone, 504 shares.
The directors will convene for their annual meeting of stockholders at 11 a.m. on April 28. The meeting will be held in Warren, Mich.