December 18, 2009
Horizon Lines ends executive officer perks
On December 10, 2009, the Compensation Committee of the Horizon Lines, Inc. (NYSE: HRZ) Board of Directors, approved the elimination of all perquisites for its executive officers (including the Chief Executive Officer). According to an SEC filing, the eliminated perquisites include, among other things, automobile allowances, reimbursements for the cost of country club memberships, and tax "gross-up" payments to reimburse executive officers for income tax on the perquisites.
At the same meeting, the Compensation Committee approved base salary increases for each named executive officer to partially adjust for the elimination of these perquisites. No adjustment was made for the elimination of tax "gross-up" payments. The aggregate value of the base salary increases for these impacted executives as a group will be less than the total value of the eliminated perquisites. These base salary increases become effective January 1, 2010. The amount of each increase is as follows:
Charles G. Raymond (Chairman, President and Chief Executive Officer) $25,000
Michael T. Avara (Senior Vice President and Chief Financial Officer) $15,000
John V. Keenan (President and Chief Operating Officer-- Horizon Lines, LLC) $15,000
Brian W. Taylor (President and Chief Operating Officer--Horizon Logistics Holdings, LLC) $15,000
In the same SEC filing, Horizon reports that the Chairperson of the Compensation Committee, James W. Down, resigned from his position as a director of the company on December 14, to pursue other opportunities in the transportation sector. the SEC filing says that Mr. Down's decision to resign from the Board of Directors did not arise or result from any disagreement with the company on any matters relating to the company's operations, policies or practices.