Separation of Leadership Roles in Major Trucking Companies
Several prominent trucking firms have opted to divide the responsibilities of president and CEO, assigning these roles to different executives instead of consolidating them under a single individual, a practice that’s common in both trucking and various industries.
Companies such as Werner Enterprises, Prime Inc., and Estes Express Lines have implemented this separation by promoting internal candidates to the presidency while retaining their current CEOs in the top roles.
Insights from Industry Executives
The rationale for this division varies by company. Two trucking leaders who have held both titles shared their perspectives with Trucking Dive regarding the distinct demands of each role.
In many trucking firms, the role of president is akin to that of a COO, focusing more on managing daily operations rather than crafting strategies or acting as the public representative of the company. Retaining a CEO while appointing a new president can help ensure stability during transitions in leadership or simply reward high-performing individuals with executive positions.
Upon announcing Darryl Hopkins’ appointment as president, Robert Low, founder of Prime Inc., reassured employees that he would remain in his position as CEO.
Job Title Distribution Based on Company Needs
How companies assign these job titles and respective responsibilities often depends on their specific circumstances. Judy McReynolds, chairman, president, and CEO of ArcBest, explained in an interview with Trucking Dive that organizational structures may vary significantly.
While McReynolds holds all three titles at ArcBest, she highlighted Seth Runser’s role as president of ABF Freight, the company’s established LTL carrier. She noted that larger organizations with subsidiaries frequently adopt this leadership framework.
Understanding the Distinction Between CEO and President Roles
Mario Harik, CEO of XPO, echoed this sentiment, describing the CEO as someone responsible for overseeing all aspects of the company and its strategies, while the president or COO concentrates on the daily operations and ensuring the plans are executed effectively.
Before succeeding Brad Jacobs as CEO of XPO, Harik was the president of LTL. Now that XPO has transitioned to focus primarily on LTL operations, the company has designated the title of president for leaders in both its eastern and western divisions. Harik expressed appreciation for their COO, Dave Bates, who oversees overall operations and was recruited from Old Dominion Freight Line.
