Summary of Compensation Arrangements with Named Executive Officers of J.B. Hunt Transport Services, Inc.
J.B. Hunt Transport Services, Inc. has set compensation terms for its top executives, including the Chairman, CEO, CFO, and other senior officers. Effective October 17, 2004, each executive receives a specified base salary. Starting January 1, 2005, they are eligible for a performance-based bonus tied to the company's earnings per share, which can range from 5% to 175% of their salary. The company also reimburses up to $10,000 for tax and estate planning services and provides 401(k) matching contributions, expected to be about $6,000 per executive in 2005.
Exhibit 10.2
SUMMARY OF COMPENSATION ARRANGEMENTS WITH NAMED EXECUTIVE OFFICERS
On October 21, 2004, the Compensation Committee (the “Committee”) of the Board of Directors of J.B. Hunt Transport Services, Inc. “(the “Company”) approved the following base salaries (effective as of October 17, 2004) and the following other compensation amounts (effective January 1, 2005) as indicated:
| Named Executive Officer |
| Base |
| Bonus |
| Other Annual |
| All Other |
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| Wayne Garrison |
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| Chairman of the Board |
| 400,000 |
| (1) |
| (2) |
| (3) |
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| Kirk Thompson |
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| President and CEO |
| 560,000 |
| (1) |
| (2) |
| (3) |
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| Jerry Walton |
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| EVP, Finance/ Administration and CFO |
| 345,000 |
| (1) |
| (2) |
| (3) |
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| Paul Bergant |
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| EVP, Marketing, CMO, President of Intermodal |
| 305,000 |
| (1) |
| (2) |
| (3) |
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| Craig Harper |
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| EVP, Operations and COO |
| 290,000 |
| (1) |
| (2) |
| (3) |
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(1) The Company has a performance-based bonus program that is related to the Company’s earnings per share (EPS) for calendar year 2005. According to the 2005 EPS bonus plan, each of the company’s named executive officers may earn a bonus ranging from 5% to 175% of his annual base salary. Based on the company’s current expectations for 2005 EPS, each named executive officer can be projected to earn a bonus equal to between 50% and 100% of his base salary.
(2) The Company will reimburse each named executive officer up to $10,000 for actual expenses incurred for tax and estate plan preparation services.
(3) The Company has a 401(k) retirement plan that includes matching contributions on behalf of each of the named executive officers. The plan is expected to pay each named executive officer approximately $6,000 during 2005.
