The logistics company named four new directors, including a former CFO, as it continues working to restate its past three years of financial statements.
Dive Brief:
- Hub Group reshuffled its board of directors, naming four new members and removing three existing directors among other moves, the transportation and logistics company said in a Friday press release and securities filing.
- The Oak Brook, Illinois-based business noted that the changes, effective Oct. 1, do not “affect the Company’s management team, strategy or day-to-day operations,” according to the Friday release. The board changes — which follow C-suite shifts made by the company last month — come as Hub Group works to refile the last three years of its financial statements after reporting a $77 million accounting error and to avoid the delisting of its stock.
- “The Company’s finance and accounting team continues to work expeditiously to complete the restatement process and file the Company’s delayed periodic reports,” the logistics firm said in the Friday release. “Hub Group continues to expect to complete this process in the fourth quarter of 2026.”
Dive Insight:
Shareholders of Hub Group acted by written consent on Thursday to appoint Gregory D. Bunch, Thomas P. Fitzgerald, Thaddeus J. Malik and Thomas M. White — a former Hub Group CFO — to the board, according to the release. They also voted to remove Michael Flannery, Peter McNitt and Gary Yablon from the board without cause, with the changes effective Oct. 1.
Following the delivery of the shareholders’ written consent, board members Mary H. Boosalis, Jennell Ross and Martin P. Slark resigned from the board effective Thursday.
The new directors will “bring valuable perspectives and relevant expertise to the Board’s oversight of the Company’s management, business and ongoing initiatives,” CEO and Executive Chairman David P. Yeager said.
The four newly-appointed directors bring expertise across legal, financial and consulting industries. For example, White previously served as Hub Group’s CFO and treasurer for a four-year period beginning May 2002 and has served as operating partner for Apollo Global Management, according to the filing with the Securities and Exchange Commission. Malik presently serves as president and principal of S2T Solutions, a transactional advisory services company.
“They intend to work constructively and collaboratively with the continuing directors to advance the best interests of Hub Group and all of its stakeholders,” Yeager said in a statement included in the release. “We will remain focused on our long-term strategy to drive growth, profitability and operating cash flows, as we work to deliver for our shareholders, customers and team members.”
The board reshuffle will not impact the C-suite changes Hub Group previously announced last month, it said Friday — which included naming Yeager, son of founder Phillip Yeager, to serve as its CEO, a role he had previously held for three decades, CFO Dive reported at the time.
Hub Group also announced Patrick O’Donnell, most recently the CFO of Treehouse Foods, will step in as its CFO after the filing of its delayed 10-K form for fiscal 2025. O’Donnell has officially joined the business as its CFO elect and special advisor, while current interim CFO Todd Heeter will remain in that position until the filing of its annual 10-K for fiscal 2025 and will lead its financial restatement efforts, CFO Dive reported.
The new board members will join Yeager and O’Donnell as Hub Group continues an ongoing financial restatement process begun in February, when the logistics business first identified it had understated purchased transportation costs and accounts payable for the first nine months of 2025.
Hub Group then issued notices to the Securities and Exchange Commission noting its financial statements for the first nine months of this year and the two preceding fiscal years were materially misstated, and has been working to complete restatements since that point, CFO Dive previously reported.
Shortly after announcing Yeager and O’Donnell’s appointments, Hub Group on Sept. 16 received a notice that the Nasdaq had initiated a process to delist its Common A stock as the company has yet to file its annual 10-K for fiscal 2025 as well as quarterly reports for the first half of its fiscal 2026, according to an SEC filing at the time.
Hub Group has appealed the notice and requested a hearing before the Nasdaq Hearing Panel, currently scheduled for Oct. 27, according to the Friday release. It has also “requested, and has been granted, a stay of the delisting action pending the outcome of the hearing,” the company said.
Filed Under:Financial Reporting,Leadership
