Let’s be clear—Knight-Swift Transportation (KNX) executives aren’t taking pay cuts out of the goodness of their hearts.
In this clip from The Call @ Hedgeye, Keith McCullough and Industrials analyst Jay Van Sciver blast the struggling trucking company’s CEO and CFO for announcing pay reductions that are temporary and “financially meaningless.”
“I’m not saying Knight-Swift is going to be unionized, but I would be shocked if there weren’t increased efforts to do that, and if this is partly a management effort to make employees less angry,” Van Sciver explains.
“It isn’t probably a great idea to draw attention to their compensation,” Van Sciver adds. “It certainly is well ahead of what the average Knight-Swift employee and trucker is paid.”
McCullough agreed the salary reduction is “not a philanthropic move, that is a political move indeed.”
Click above to watch the full clip.