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XPO’s CFO Carl Anderson Departs – C-suite Transitions

  • July 27, 2023

It is sometimes amazing to see how different companies operating in the same industry can have polar opposite outcomes. Among the various missed opportunities I sometimes reminisce about is the trucking company J.B. Hunt (JBHT), which has done very well during the two decades since I first came across the company. While I didn’t invest in J.B. Hunt, I am equally glad I avoided the leveraged Yellow Corporation (YELL), which has been a slow motion wreck that appears to be on its last tires. J.B. Hunt is now a $21 billion company and Yellow has a market cap of just $54 million.

With Yellow once again flirting with bankruptcy, the company limited pick-ups at all its terminals, giving other less-than-truckload (LTL) freight companies a boost in their stock price this week. One such beneficiary of Yellow’s actions, XPO, is the subject of our article today. XPO, which at at one point went on a binge of acquisitions to become a logistics company that provided various services, has recently scaled back through divestitures and spinoffs to become a pure play LTL company.

Welcome to edition 51 of C-Suite Transitions, a weekly series on InsideArbitrage that tracks appointments and departures at publicly traded companies during the prior week. We highlight five appointments and departures each week by picking the largest companies from the full list of management changes.

Sudden Departures

  1. XXII: On July 21, 2023, 22nd Century Group’s Chief Executive Officer James A. Mish notified the company that he was resigning for personal reasons effective August 1, 2023. He will continue to serve as a member of the Board of Directors.
  2. AA: On July 20, 2023, Alcoa’s Chief Commercial Officer Kelly R. Thomas voluntarily resigned from the company, effective August 1, 2023.
  3. ADMP:  On July 18, 2023, Adamis Pharmaceuticals’ Chief Financial Officer David C. Benedicto tendered his resignation effective July 21, 2023.
  4. ZVIA:  On July 21, 2023, Zevia PBC and Chief Operating Officer Quincy B. Troupe mutually agreed that Mr. Troupe will step down as Chief Operating Officer effective as of August 4, 2023.
  5. PCYO: On July 20, 2023, Pure Cycle Corp.’s Chief Financial Officer Kevin B. McNeill notified the company that he would resign effective July 21, 2023.
  6. PSA: On July 21, 2023, Public Storage announced Chief Operating Officer David Lee resigned for personal reasons effective August 1, 2023.
  7. TSE: On July 18, 2023, Trinseo PLC announced Chief Operating Officer Andre Lanning would be terminated in connection with a reorganization of the company’s executive leadership team. Mr. Lanning will serve as special advisor starting on August 1, 2023, and will exit the company on or before January 31, 2024.
  8. HLNE:  On July 14, 2023, Atul Varma and Hamilton Lane Incorporated reached a mutual agreement where Mr. Varma will resign from his position as Chief Financial Officer and Treasurer, effective August 8, 2023.
  9. XPO: On July 13, 2023, XPO’s Chief Financial Officer Carl Anderson notified the company of his intent to step down from his role effective August 11, 2023.
  10. CXM:  On July 19, 2023, Sprinklr announced Chief Technology Officer Pavitar Singh informed the company of his decision to resign from his role for health reasons, effective July 18, 2023, which the company accepted.
  11. FLGC: On July 19, 2023, Flora Growth’s General Counsel Matthew Cohen tendered his resignation effective July 19, 2023.
  12. SRZN: On July 19, 2023, Surrozen’s Chief Scientific Officer Wen-Chen Yeh resigns in connection with planned restructuring and reduction-in-force effective July 31, 2023.

XPO, Inc. (XPO)

XPO (XPO), a provider of less-than-truckload (LTL) freight transportation in North America and Europe, serves around 48,000 customers through 554 locations and a workforce of 38,000 employees. With 294 terminals across the US, XPO can cover 99% of all US zip codes.

XPO organizes its business into two key segments: North American LTL and European Transportation. The North American segment accounts for the majority of the revenues, comprising approximately 70% of revenue in the last quarter.

Less-than-truckload (LTL) shipping is a transportation method used for freight that doesn’t necessitate a full truckload trailer. Typically, LTL shipments fall within the weight range of 500 to 15,000 pounds, and they are usually palletized, requiring only a fraction of a trailer for delivery.

Source: XPO website

On July 19, 2023, XPO announced a change in the Chief Financial Officer position. XPO announced the promotion of Kyle Wismans to CFO, effective August 11, 2023. He will succeed CFO Carl Anderson, who departs the company to reunite with a former colleague in a prior industry after a decade-long tenure.

Kyle Wismans – Incoming CFO

Kyle WismansMr. Wismans, currently SVP of Revenue Management and Finance, joined XPO in 2019 as SVP of Financial Planning and Analysis. Wismans has occupied several significant senior financial roles throughout his 17-year career with global public companies. Notably, prior to his tenure at XPO, he served as an executive at General Electric and Baker Hughes for more than a decade.

Mario Harik, chief executive officer of XPO, said,

“We expect this transition to be a seamless hand-off between two senior executives in our organization. Kyle is a seasoned finance leader who has been instrumental in the execution of our two spin-offs and our LTL growth strategy. Carl has made many contributions to XPO, and I have no doubt that he’ll continue to be successful in this next step of his career.”

Carl Anderson

Carl Anderson, XPO’s CFO since November 2022, previously served as Senior VP & CFO at Meritor, Inc. His 16-year tenure there included various finance roles. Earlier, he worked with First Chicago Corporation and General Motors Acceptance Corporation.

In a separate news release, Axalta Coating Systems (AXTA) announced that Carl Anderson has been appointed Senior Vice President and Chief Financial Officer effective August 14, 2023.

Carl’s leadership of finance organizations for one of the largest LTL carriers in North America as well as a global commercial vehicle supplier will provide a unique perspective for our business,” said Chris Villavarayan, Axalta CEO

The Old Dominion Freight Line Connection

In March, XPO announced that J. Wes Frye had joined the company’s board of directors. Mr. Frye had a 30-year tenure as an executive at Old Dominion Freight Line, Inc. (ODFL), where he served as Chief Financial Officer for 18 years until his retirement in 2015. During his time at ODFL, he played a crucial role in establishing a customer-centric culture and implemented various initiatives that contributed to a notable revenue growth of around $3 billion.

In April, XPO made an official announcement regarding the appointment of Dave Bates to the position of Chief Operating Officer. Mr. Bates brings with him a track record of 27 years at Old Dominion Freight Line, Inc., and he has now joined the XPO team. His most recent role at Old Dominion was Senior Vice President, Operations, where he effectively managed all day-to-day operations across North America for 12 years. Prior to that, he laid a solid foundation in the industry through key roles at Carolina Freight Carriers and Roadway Express.

In January, XPO revealed another significant executive appointment as Ali Faghri joined the company as its Chief Strategy Officer. Before joining XPO,  Mr. Faghri spent the past 12 years as a Managing Director at Guggenheim Partners, where his expertise centered on the automotive sector. Over the last two years, XPO has been strategically divesting and spinning off assets to transform into a focused and specialized pure-play LTL (Less-Than-Truckload) carrier.


Last November, XPO successfully finalized the spin-off of RXO, Inc. (RXO). The spinoff allowed XPO to separate its tech-enabled brokered transportation services from its less-than-truckload (LTL) business in North America. The process of separation was carried out by distributing one share of RXO common stock to XPO stockholders for every share of XPO common stock they held as of the record date for the distribution, which was October 20, 2022.

XPO Announces Job Cuts for Labor Cost Reduction

In May 2023, XPO announced a reduction in jobs while exceeding Wall Street’s expectations for first-quarter adjusted profit. The company achieved this by implementing effective cost controls, countering the decline in freight demand, which led to a significant surge in its shares to a level not seen in over one and a half years.


XPO’s stock is up almost 115% percent over the last year.  The company has a market cap of $7.81 billion and an enterprise value of $11.25 billion on account and net debt of $2.5 billion. It trades at an EV/Sales ratio of 1.46 and EV/EBITDA of 10.88.

First Quarter 2023 Results (Investor Presentation)

  • Revenue growth to $1.9 billion, and diluted EPS of $0.15
  • Adjusted diluted EPS of $0.56, up 22% year-over-year
  • Net income from continuing operations attributable to common shareholders for Q1 2023 was $17 million, compared to $32 million in Q1 2022.
  • Operating income for Q1 2023 was $58 million, down from $63 million in Q1 2022, due to higher transaction costs related to the RXO spin-off.
  • Diluted earnings from continuing operations per share were $0.15 for Q1 2023, compared to $0.28 in Q1 2022.
  • Adjusted net income from continuing operations attributable to common shareholders (non-GAAP) increased to $65 million for Q1 2023, compared to $53 million in Q1 2022.
  • Adjusted diluted earnings from continuing operations per share (non-GAAP) were $0.56 for Q1 2023, compared to $0.46 in Q1 2022.
  • Adjusted EBITDA increased to $210 million for Q1 2023, compared to $184 million in Q1 2022.
  • The company generated $76 million of cash flow from operating activities in the quarter.
  • Free cash flow (non-GAAP) resulted in cash usage of $140 million in Q1 2023 after $216 million of net capital expenditures.
  • North American Less-Than-Truckload (LTL): The segment generated revenue of $1.12 billion for the first quarter of 2023, compared with $1.11 billion for the same period in 2022. On a year-over-year basis, shipments per day increased 1.5%, tonnage per day decreased by 1.8%, and yield, excluding fuel, increased 1.4%. Including fuel, yield increased by 2.4%.
  • European Transportation: The segment generated revenue of $787 million in each of the first quarters of 2023 and 2022. On a constant currency basis, excluding the unfavorable impact of foreign exchange, first quarter 2023 revenue increased year-over-year by 6%.

XPO will hold its second quarter conference call and webcast on Friday, August 4.

Source: Investor Presentation

Source: Investor Presentation

Source: Investor Presentation


As of December 31, 2022, the company’s total liquidity amounted to $930 million, comprising $460 million in cash and cash equivalents, and approximately $470 million of borrowing capacity. Furthermore, on February 6, 2023, the company successfully extended the maturity of its ABL facility by two years, now set to mature in April 2026.

XPO Announces Pricing of Refinancing Transactions

XPO announced the pricing of its $700 million secured term loan facility $830 million of Senior Secured Notes due 2028  and $450 million of Senior Unsecured Notes due 2031. The company intends to use the net proceeds from the Term Loan Facility and the Notes, along with available cash, to repay the outstanding term loan principal and accrued interest under its existing secured term loan facility, as well as to cover associated fees, costs, and expenses. XPO plans to repay the remaining portion of its existing term loans with cash on hand during the second quarter of 2023.


Chief Executive Officer Mario Harik said, “Demand remains soft, with a negative impact on tonnage, but we’re actively reducing our operating costs while continuing to invest capital to meet the long-term needs of our customers. Importantly, we’re gaining profitable market share, propelled by our highest service quality in over a decade.”

The freight market is highly dependent on strong economic activity, which drives demand for deliveries and shipments. Economic fluctuations can significantly impact the industry, making it essential to closely monitor economic indicators and market trends when analyzing the performance and outlook of transportation and freight companies.

Despite facing significant economic challenges, XPO’s stock price is approaching an all-time high. XPO intends to grow its network and replicate the success of Old Dominion Freight Lines, which is known for providing excellent customer service. The LTL market is highly fragmented and it is possible that a leaner XPO might now focus on increasing its market share in the LTL space through strategic acquisitions. As long as the company can do this without taking on too much debt, it would be worth keeping the company on your watchlist.


1. Marriott Vacations Worldwide (VAC): $126.15

On July 25, 2023, Marriott Vacations Worldwide Corporation announced that Jason P. Marino has been appointed as Chief Financial Officer, effective September 30, 2023.

MarketCap: $4.64BAvg. Daily Volume (30 days): 365,876Revenue (TTM): $3.36B
Net Income Margin (TTM): 12.51%ROE (TTM): 15.84%Net Debt: $4.88B
P/E: 13.06Forward P/E: 11.61EV/EBIDTA (TTM): 10.08
P/S (TTM): 1.19P/B (TTM): 1.9052 Week Range: $117.66 – $164.12

2. Bath & Body Works (BBWI): $35.97

On July 25, 2023, Bath & Body Works announced that the company’s Board of Directors appointed Eva C. Boratto as the company’s Chief Financial Officer effective as of August 1, 2023.

MarketCap: $8.23BAvg. Daily Volume (30 days): 3,992,491Revenue (TTM): $7.51B
Net Income Margin (TTM): 9.67%ROE (TTM):-29.83%Net Debt: $4.93B
P/E: 11.52Forward P/E: 12.53EV/EBIDTA (TTM): 8.73
P/S (TTM): 1.07P/B (TTM): N/A52 Week Range: $30.01 – $49.04

3. Chevron Corp. (CVX): $161.34 

On July 23, 2023, Chevron Corporation announced Eimear Bonner, Chief Technology Officer and President of the Chevron Technical Center, will succeed Breber as Chief Financial Officer, effective March 1, 2024.

MarketCap: $301.62BAvg. Daily Volume (30 days): 6,478,064Revenue (TTM): $232.97B
Net Income Margin (TTM): 15.36%ROE (TTM): 23.37%Net Debt: $6.42B
P/E: 8.70Forward P/E: 12.18EV/EBIDTA (TTM): 5.31
P/S (TTM): 1.35P/B (TTM): 1.9152 Week Range: $136.82 – $184.77

4. Valero Energy Corp. (VLO): $126.18

On July 20, 2023, Valero Energy Corporation announced that Gary K. Simmons, Valero’s Chief Commercial Officer, was promoted as Chief Operating Officer of Valero, effective July 20, 2023.

MarketCap: $45.62BAvg. Daily Volume (30 days): 3,231,135Revenue (TTM): $169.09B
Net Income Margin (TTM): 8.10%ROE (TTM): 59.22%Net Debt: $3.82B
P/E: 3.57Forward P/E: 5.85EV/EBIDTA (TTM): 2.55
P/S (TTM): 0.28P/B (TTM): 1.8052 Week Range:  $95.46 – $157.54

5. Cisco Systems (CSCO): $53.22

On July 18, 2023, the Cisco Systems Board of Directors appointed M. Victoria Wong as Chief Accounting Officer of Cisco effective July 30, 2023.

MarketCap: $218.42BAvg. Daily Volume (30 days): 18,467,020Revenue (TTM): $54.90B
Net Income Margin (TTM): 20.89%ROE (TTM): 27.74%Net Cash: $13.8B
P/E: 19.08Forward P/E: 13.18EV/EBIDTA (TTM): 12.63
P/S (TTM): 4.02P/B (TTM): 5.1352 Week Range: $37.73 – $53.76


1.  Chevron Corp. (CVX): $161.34

On July 23, 2023, Chevron Corporation announced Pierre Breber Chief Financial Officer, will retire from Chevron in March 2024.

MarketCap: $301.62BAvg. Daily Volume (30 days): 6,478,064Revenue (TTM): $232.97B
Net Income Margin (TTM): 15.36%ROE (TTM): 23.37%Net Debt: $6.42B
P/E: 8.70Forward P/E: 12.18EV/EBIDTA (TTM): 5.31
P/S (TTM): 1.35P/B (TTM): 1.9152 Week Range: $136.82 – $184.77

2. Public Storage (PSA): $295.57

On July 21, 2023, Public Storage announced that David Lee, the company’s Chief Operating Officer, resigned for personal reasons effective August 1, 2023.

MarketCap: $52.11BAvg. Daily Volume (30 days): 743,620Revenue (TTM): $4.35B
Net Income Margin (TTM): 100.14%ROE (TTM): 43.83%Net Debt: $1.77B
P/E: 12.57Forward P/E: 26.60EV/EBIDTA (TTM): 19.83
P/S (TTM): 12.11P/B (TTM): 9.1252 Week Range: $263.37 – $345.37

3. AES Corp. (AES): $21.90

On July 21, 2023, the Board of Directors of The AES Corporation announced Bernerd Da Santos, currently serving as Chief Operating Officer will step down from his position, effective July 24, 2023,

MarketCap: $14.66BAvg. Daily Volume (30 days): 4,360,891Revenue (TTM): $13.00B
Net Income Margin (TTM): -3.92%ROE (TTM): -8.40%Net Debt: $18.35B
P/E: -28.58Forward P/E: 12.84EV/EBIDTA (TTM): 11.97
P/S (TTM): 1.13P/B (TTM): 9.6252 Week Range: $19.52 – $29.49

4. Wesbanco (WSBC): $29.12

Wesbanco announces Todd F. Clossin will retire from his position as President and Chief Executive Officer of the company effective August 1, 2023.

MarketCap: $1.66BAvg. Daily Volume (30 days): 195,694Revenue (TTM): $610.60M
Net Income Margin (TTM): 31.52%ROE (TTM): 7.80%Net Debt: $932.08M
P/E: 9.50Forward P/E: 9.92EV/EBIDTA (TTM): N/A
P/S (TTM): 2.81P/B (TTM): 0.7452 Week Range: $19.36 – $39.60

5. Alcoa Corp (AA): $34.84

On July 20, 2023, Kelly R. Thomas, Executive Vice President, and Chief Commercial Officer of Alcoa Corporation, voluntarily resigned from the company, effective August 1, 2023.

MarketCap: $6.22BAvg. Daily Volume (30 days): 5,725,295Revenue (TTM): $10.87B
Net Income Margin (TTM): -13.56%ROE (TTM): -22.43%Net Debt:  N/A
P/E: -4.21Forward P/E: N/AEV/EBIDTA (TTM): 18.56
P/S (TTM): 0.57P/B (TTM): 1.2852 Week Range: $31.14 – $57.82

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