UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the Securities

Exchange Act of 1934 (Amendment No. )


Filed by the Registrant ☒

Filed by a Party other than the Registrant ☐


Check the appropriate box:

☐

 

Preliminary Proxy Statement

☐

 Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

☒

 

Definitive Proxy Statement

☐

 

Definitive Additional Materials

☐

 

Soliciting Material Pursuant to §240.14a-12


FORWARD AIR CORPORATION

(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

Payment of Filing Fee (Check the appropriate box):

☒

No fee required.

☐

☐

Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.

 

(1)

(1		)

Title of each class of securities to which transaction applies:

 
 

(2
)

(2)

Aggregate number of securities to which transaction applies:

 
 

(3
)

(3)

Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):

 
 

(4
)

(4)

Proposed maximum aggregate value of transaction:

 
 

(5)Total fee paid:
 

(5)

Total fee paid:

☐

Fee paid previously with preliminary materials.

☐

☐

Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.




(1)Amount Previously Paid:
 

(1)

 

Amount Previously Paid:

(2)

(2)

Form, Schedule or Registration Statement No.:

 
 

(3)Filing Party:
 

(3)

 

Filing Party:

(4)Date Filed:
 

(4)

Date Filed:



LOGO

March 31, 2017




logo.jpg

April 2, 2020
Dear Fellow Shareholder:

On behalf of the Board of Directors and management of Forward Air Corporation, you are cordially invited to attend the 20172020 Annual Meeting of Shareholders on Tuesday, May 9, 2017,12, 2020, beginning at 8:00 a.m., EDT in The Explorer Room at the Atlanta Airport Marriott Gateway, 2020 Convention Center Concourse, Atlanta, GA 30337.

YOURVOTEISIMPORTANT. Whether or not you plan to attend the meeting in person, please vote and submit your proxy over the Internet, by telephone or by completing, signing, dating and returning the enclosed proxy in the envelope provided as promptly as possible. If you attend the meeting and desire to vote in person, you may do so even though you have previously submitted a proxy.

I hope you will be able to join us, and we look forward to seeing you at the meeting.

Sincerely yours,

LOGO

Bruce A. Campbell

image2.jpg
Thomas Schmitt
Chairman, President and Chief Executive Officer

CEO





FORWARD AIR CORPORATION

1915 Snapps Ferry Road, Building N

Greeneville, Tennessee 37745


NOTICE OF 20172020 ANNUAL MEETING OF SHAREHOLDERS

TO BE HELD MAY 9, 2017

12, 2020


To the Shareholders of Forward Air Corporation:

The 20172020 Annual Meeting of Shareholders of Forward Air Corporation (the “Company”) will be held on Tuesday, May 9, 2017,12, 2020, beginning at 8:00 a.m., EDT, in The Explorer Room at the Atlanta Airport Marriott Gateway, 2020 Convention Center Concourse, Atlanta, GA 30337.

*

Attendance at the Annual Meeting will be limited to shareholders, those holding proxies from shareholders and representatives of the Company, press and financial community. To gain admission to the Annual Meeting, you will need to bring identification and will need to show that you are a shareholder of the Company. If your shares are registered in your name and you plan to attend the Annual Meeting, please retain and bring the top portion of the enclosed proxy card as your admission ticket. If your shares are in the name of your broker or bank, or you received your proxy materials electronically, you will need to bring evidence of your stock ownership, such as your most recent brokerage account statement.

The purposes of this meeting are:

1.Tore-elect seven ten members of the Board of Directors with terms expiring at the 20182021 Annual Meeting of Shareholders, or until their respective successors are elected and qualified;

2.To ratify the appointment of Ernst & Young LLP as the independent registered public accounting firm of the Company for the 20172020 fiscal year;

3.To approve, on anon-binding, advisory basis, the compensation of the named executive officers (the “say on pay vote”);

4.To approve, on anon-binding, advisory basis, whether future say on pay votes should occur every one, two, or three years (the “say on frequency vote”); and

5.
4.To transact such other business as may properly come before the Annual Meeting and at any adjournment or postponement thereof.

We mailed a Notice of Internet Availability of Proxy Materials containing instructions on how to access our Proxy Statement and Annual Report on Form 10-K for the year ended December 31, 2019 on or about April 2, 2020.
Our Proxy Statement and Annual Report are available online at: www.proxyvote.com.
We will make available a list of shareholders of record as of March 10, 2017,11, 2020, the record date for the Annual Meeting, for inspection by shareholders during normal business hours from March 16, 2017April 1, 2020 until May 8, 201712, 2020 at the Company’s principal place of business, 1915 Snapps Ferry Road, Building N, Greeneville, Tennessee 37745. The list also will be available to shareholders at the meeting.

Only holders of the Company’s common stock, par value $0.01 per share, of record at the close of business on March 10, 201711, 2020 are entitled to notice of and to vote at the Annual Meeting. Shareholders are cordially invited to attend the meeting in person.OurBoardofDirectorsrecommendsavoteFOReachofthedirectornomineesinproposal1, and FORproposals2and3andforthe“1year”optioninproposal4.

3.

It is important that your shares be represented at the Annual Meeting. Whether or not you expect to attend the meeting, please vote and submit your proxy over the Internet, by telephone or by mail. Please refer to the proxy card for specific voting instructions. If you attend the meeting and desire to vote in person, you



may do so even though you have previously submitted a proxy. You may revoke your proxy at any time before it is voted.

voted at the Annual Meeting.

By Order of the Board of Directors,

LOGO

image.jpg
Greeneville, Tennessee
April 2, 2020

Michael L. Hance

Greeneville, Tennessee

Senior Vice President,

March 31, 2017

Chief Legal Officer and Secretary

We mailed a Notice of Internet Availability of Proxy Materials containing instructions on how to access our



IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE 2020 ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON MAY 12, 2020.
The Company’s Proxy Statement for the 2020 Annual Meeting of Shareholders and the Company’s Annual Report on Form10-K for the fiscal year ended December 31, 2016 on or about March 31, 2017.

Our Proxy Statement and Annual Report2019 are available online at: www.proxyvote.com.

at www.proxyvote.com.


* We currently intend to hold the 2020 Annual Meeting of Shareholders in person. However, we are actively monitoring the coronavirus, or COVID-19, and are sensitive to the public health and travel concerns that our shareholders may have, as well as protocols that federal, state, and local governments may impose. If it is not possible or advisable to hold the 2020 Annual Meeting of Shareholders in person, we will announce alternative arrangements for the meeting as promptly as practicable, which may include switching to a virtual meeting format, or changing the time, date or location of the 2020 Annual Meeting of Shareholders. Any such change will be announced via press release and the filing of additional proxy materials with the Securities and Exchange Commission.




FORWARD AIR CORPORATION

1915 Snapps Ferry Road, Building N

Greeneville, Tennessee 37745

(423)636-7000


PROXY STATEMENT

FOR

2020 ANNUAL MEETING OF SHAREHOLDERS


This Proxy Statement is furnished to the shareholders of Forward Air Corporation (the “Company”) in connection with the solicitation of proxies by the Board of Directors of the Company (the “Board”) for use at the 20172020 Annual Meeting of Shareholders (the “Annual Meeting”) to be held on Tuesday, May 9, 2017,12, 2020, beginning at 8:00 a.m., EDT, in The Explorer Room at the Atlanta Airport Marriott Gateway, 2020 Convention Center Concourse, Atlanta, GA 30337, and any adjournment or postponement thereof, for the purposes set forth in the foregoing Notice of 20172020 Annual Meeting of Shareholders.

You can ensure that your shares are voted at the Annual Meeting by submitting your instructions over the Internet, by telephone or by completing, signing, dating and returning the enclosed proxy in the envelope provided. You may revoke your proxy at any time before it is exercised by voting in person at the Annual Meeting or by delivering written notice of your revocation to, or a subsequent proxy to, the Secretary of the Company at its principal executive offices. Each properly executed proxy will be votedFOReach of the director nominees in proposal 1, and FORproposals 2 and 3 and for the “1year” option in proposal 4 if no contrary instruction is indicated in the proxy, and in the discretion of the persons named in the proxy on any other matter that may properly come before the shareholders at the Annual Meeting.

Shareholders are entitled to one vote for each share of common stock held of record at the close of business on March 10, 201711, 2020 (the “Record Date”). There were 30,260,10728,056,094 shares of our common stock, par value $0.01 per share (“common stock”), issued and outstanding on the Record Date. Holders of Series A Junior Preferred Stock, par value $0.01 per share (“preferred stock”) are entitled to vote with holders of shares of common stock together as one class on all matters submitted to a shareholder vote. However, as of the record date, no shares of our preferred stock were outstanding. The presence, in person or by proxy, of a majority of shares of common stock will, therefore, constitute a quorum at the Annual Meeting.

The affirmative vote of a plurality of the votes cast by the shareholders entitled to vote at the Annual Meeting is required for the election of directors. A properly executed proxy marked“WithholdAuthority” with respect to the election of one or more directors will not be voted with respect to the director or directors indicated, although it will be counted in determining whether there is a quorum. Therefore, so long as a quorum is present, withholding authority will have no effect on the election of directors.

In the event that any nominee for director in an uncontested election receives a greater number of votes “withheld” from his or her election than votes “for” such election, such director shall tender his or her resignation for consideration by the Corporate Governance and Nominating Committee. The Corporate Governance and Nominating Committee shall recommend to the Board the action to be taken with respect to the resignation. The Board will publicly disclose its decision within 90 days of the certification of the election results.

The ratification of Ernst & Young LLP as the independent registered public accounting firm of the Company for the 20172020 fiscal year, the say on pay vote and any other matter that properly comes before the Annual Meeting will be approved by a majority of the votes cast. A properly executed proxy marked

“Abstain” with respect to such proposals will not be voted on such proposals, although it will be counted in determining whether there is a quorum. Therefore, as long as a quorum is present, abstaining from proposals 2 and 3 or any other proposal that properly comes before the Annual Meeting will have no effect on whether such proposals are approved.

For the say on frequency vote, we will consider that the shareholders have recommended whichever option (one, two or three years) receives the greatest number of votes cast. A properly executed proxy marked “Abstain” with respect to such proposal will not be voted on that proposal, although it will be counted in determining whether there is a quorum. Therefore, as long as a quorum is present, abstaining from proposal 4 will have no effect on the outcome of the proposal.

Brokers who hold shares for the accounts of their clients who do not receive voting instructions may not vote for matters that are not considered “routine.” The matters contained in this Proxy Statement that are not considered routine are the election of the Board the say on pay vote and the say on frequencypay vote. Shares held by your broker will not be voted on these matters absent specific instruction from you, which means your shares may go unvoted and not affect the outcome if you do not specify a vote. Proxies that are returned to us where brokers have received instructions to vote on one or more proposal(s) but have not received instructions to vote on other proposal(s) are referred to as “brokernon-votes”



with respect to the proposal(s) not voted upon. Brokernon-votes are included in determining the presence of a quorum but will have no effect on whether such proposals are approved.

The Company will bear the cost of soliciting proxies for the Annual Meeting. The Company has retained Innisfree M&A Incorporated (“Innisfree”) to aid in the solicitation of proxies and to verify certain records related to the solicitation subject to customary terms and conditions. The Company will pay Innisfree a fee of $10,000 as compensation for its services and will reimburse it for its reasonable out-of-pocket expenses. Our officers and employees may also solicit proxies by mail, telephone,e-mail or facsimile transmission. They will not be paid additional remuneration for their efforts. Upon request, we will reimburse brokers, dealers, banks and trustees, or their nominees, for reasonable expenses incurred by them in forwarding proxy materials to beneficial owners of shares of our common stock.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE 2017 ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON MAY 9, 2017.

The Company’s Proxy Statement for the 2017 Annual Meeting of Shareholders and the Company’s Annual Report on Form10-K for the fiscal year ended December 31, 2016 are available at www.proxyvote.com.





PROPOSAL 1 –- ELECTION OF DIRECTORS

Our Amended and Restated Bylaws (“Bylaws”) permit the Board to fix the size of the Board. At the date of this Proxy Statement, our Board is comprised of nineten directors, eightnine of whom arenon-employee directors. Two of our current directors, Tracy Leinbach and Larry Leinweber, have decided to retire from our Board effective immediately prior to the Annual Meeting, and, as a result, will not stand forre-election at such meeting. Accordingly, the size of our Board will be reduced to seven directors immediately upon their retirement. There are seventen nominees for election at the Annual Meeting, each to hold office until the 20182021 Annual Meeting of Shareholders or until a successor has been duly elected and qualified. Each nominee has consented to serve if elected.

Recommendation of the Board
The Board recommends a vote FOR the election of the ten nominees named below. Duly executed proxies will be so voted unless record holders specify a contrary choice on their proxies. Proxies cannot be voted for a greater number of persons than the number named.
Shareholder Vote Requirement
The nominees for election shall be elected by a plurality of the votes cast by the shares of common stock entitled to vote at the Annual Meeting. Shareholders have no right to vote cumulatively for directors. Each share shall have one vote for each directorship to be filled on the Board.
In the event any director nominee, in an uncontested election, receives a greater number of votes “withheld” from his or her election than votes “for” such election, he or she shall tender his or her resignation for consideration by the Corporate Governance and Nominating Committee. The Corporate Governance and Nominating Committee shall recommend to the Board the action to be taken with respect to the resignation. The Board will publicly disclose its decision within 90 days of the certification of the election results.

2

Recommendation of the Board

TheBoardrecommendsavoteFORtheelectionofthesevennomineesnamedbelow.Dulyexecutedproxieswillbesovotedunlessrecordholdersspecifyacontrarychoiceontheirproxies. Proxies cannot be voted for a greater number of persons than the number named.

Shareholder Vote Requirement

The nominees for election shall be elected by a plurality of the votes cast by the shares of common stock entitled to vote at the Annual Meeting. Shareholders have no right to vote cumulatively for directors. Each share shall have one vote for each directorship to be filled on the Board.

Director Nominees

The following persons are the nominees forre-election to serve as directors. There are no family relationships between any of the director nominees. Each director nominee is standing forre-election by the shareholders. Certain information relating to the nominees, furnished by the nominees, is set forth below. The ages set forth below are accurate as of the date of this Proxy Statement.

The Board has determined that all of its current directors are qualified to serve as directors of the Company. In addition to the specified business experience listed below, each of the directors has the skills and attributes which the Board believes are required to be an effective director of the Company, including experience at senior levels in areas of expertise helpful to the Company, a willingness and commitment to assume the responsibilities required of a director of the Company and the character and integrity the Board expects of its directors.

RONALD W. ALLEN

 

Director since 2014

and from 2011 to 2013

Age 75

78

Mr. Allen retired as the Chief Executive Officer of Aaron’s, Inc. (“Aaron’s”), a leadinglease-to-own company for furniture, appliances and electronics, in August 2014. He served as the Chairman of the Board of Directors of Aaron’s and as its President and Chief Executive Officer from November 2012 until April 2014, continuing in the role of Chief Executive Officer until August 2014. Before being elected as Chairman of the Board of Aaron’s, Mr. Allen served as President and Chief Executive Officer from February 2012 until November 2012, and as its Interim President and Chief Executive Officer from November 2011 until February 2012.


Mr. Allen retired as the Chairman of the Board, President and Chief Executive Officer of Delta Air Lines, Inc. (“Delta”) in July 1997. From July 1997 through July 2005, Mr. Allen was a consultant to and Advisory Director of Delta. He served as Chairman of the Board, President and Chief Executive Officer of Aaron’s, Inc. (“Aaron’s”), a leading lease-to-own company for furniture, appliances and electronics, from November 2012 until April 2014, continuing in the role of Chief Executive Officer until his retirement in August 2014. Previously, he served as President and Chief Executive Officer of Aaron’s from February 2012 until November 2012. Mr. Allen has been a Director of The Coca-Cola Company since 1991 and currently serves on its finance committee and as Chairman of its audit committee.committee, but will be retiring in April 2020. In addition, he has been a Director of Aircastle Limited since 2006 and currently serves on its audit committee.and nominating and governance committees. He previously served as a Director of Interstate Hotels & Resorts, Inc. from 2006 to 2010 and Guided Therapeutics Inc. from 2008 to 2014.



Qualifications. The Board believes Mr. Allen brings a significant depth of senior leadership and governance experience to the Board.

3

BRUCE A. CAMPBELL

Director since 1993

Age 65

Mr. Campbell has served as President of the Company since August 1998, as our Chief Executive Officer since October 2003 and as Chairman of the Board since May 2007. Mr. Campbell was Chief Operating Officer of the Company from April 1990 until October 2003 and served as our Executive Vice President from April 1990 until August 1998. Prior to joining the Company, Mr. Campbell served as Vice President ofRyder-Temperature Controlled Carriage in Nashville, Tennessee from September 1985 until December 1989. Mr. Campbell has held a leadership role with the Company for over 26 years, has served as our Chief Executive Officer for over 13 years and as our Chairman for over 9 years.

Qualifications. The Board believes that Mr. Campbell possesses a wealth of industry knowledge,Allen utilizes that experience and expertise and has been a strong, proven leaderin his service as Chairman of the Company.

Corporate Governance and Nominating Committee.

C. ROBERT CAMPBELL

ANA B. AMICARELLA		 

Director since 2005

2017
Age 54
Ms. Amicarella is the Chief Executive Officer of EthosEnergy, an independent service provider of rotating equipment services and solutions to the global power, oil and gas and industrial markets. Prior to joining EthosEnergy in December 2019, Ms. Amicarella served as Managing Director for the Latin America business of Aggreko PLC, a rental business of mobile power plants and temperature control solutions, after serving as Vice President of various business units from 2011 to April 2019. Previously, she was general manager of GE Oil & Gas Services for North America. Ms. Amicarella began her career as a field engineer with GE in 1988, and during her tenure, she served in various professional capacities within the areas of services, sales, strategy and P&L leadership. Ms. Amicarella was elected to the board of Warrior Met Coal, Inc. in August 2018 and serves as a member of its audit, nominating and governance, and environmental health and safety committees. Ms. Amicarella received a B.S. in electrical engineering from The Ohio State University and an MBA from Oakland University. She competed in the 1984 Olympics in synchronized swimming for Venezuela and was an All-American while at The Ohio State University.
Qualifications. The Board believes that Ms. Amicarella’s extensive business, prior management experience and diversity, including her Hispanic background brings sound guidance to our Board. The Board believes that Ms. Amicarella utilizes that experience in her service as a member of both the Audit Committee and the Corporate Governance and Nominating Committee.
VALERIE A. BONEBRAKE 
Director since 2018
Age 7268


Ms. Bonebrake retired as a Senior Vice President of Tompkins International in March 2018 and has more than 25 years of industry experience in logistics services. In her role at Tompkins, she consulted with an array of companies and industries in North America and across the globe. Prior to joining Tompkins in 2009, she was the Executive Vice President and a cofounder of the YRC Worldwide subsidiary, Meridian IQ (now Noatum Logistics), a global third party logistics company. Ms. Bonebrake spent 19 years at Ryder System, Inc. in various leadership roles of increasing responsibility in the company’s supply chain solutions segment. She also has been recognized by Ingram Magazine as one of the Top Ten Female Executives in Kansas, and was a 2010 recipient of Supply & Demand Chain Executive’s Pros to Know award. She holds a M.S. in International Logistics from the Georgia Institute of Technology.
Qualifications. The Board believes that Ms. Bonebrake contributes strategic insight to our Board based on her extensive experience in the transportation industry. The Board believes that Ms. Bonebrake utilizes that experience in her service as a member of the Audit Committee.
C. ROBERT CAMPBELL
Director since 2005
Age 75

Mr. Campbell has served as the Company’s Lead Independent Director sincefrom May 2014.2014 to May 2019. He served as Executive Vice President and Chief Financial Officer of MasTec, Inc., a leading communications and energy infrastructure service provider in North America, from October 2004 until December 2013. Mr. Campbell has over 25 years of senior financial management experience. From January 2002 to October 2004, Mr. Campbell was Executive Vice President and Chief Financial Officer for TIMCO Aviation Services, Inc. Mr. Campbell was the President and Chief Executive Officer of BAX Global, Inc. from April 1998 to June 2000. He served as Executive Vice President-Finance and Chief Financial Officer for Advantica Restaurant Group, Inc. from March 1995 to March 1998. Also, Mr. Campbell worked for Ryder System, Inc., for over 20 years including serving for 10 years as Executive Vice President and Chief Financial Officer for its Vehicle Leasing and Services Division. Mr. Campbell is a Certified Public


Accountant (Inactive). Mr. Campbell iswas a Director of Pernix Group, Inc. sincefrom January 2014 and currently serves on its compensation committee and as Chairman of its audit committee.until June 2018. In addition, Mr. Campbell ishas been a Director of MasTec, Inc. since September 2016.

Qualifications.

Qualifications. The Board believes that Mr. Campbell brings to the CompanyBoard a tremendous amount of industry-related knowledge and experience in a multitude of areas, including accounting, finance, operations, sales and marketing as he has served in executive leadership capacities with transportation and logistics companies and as Chief Financial Officer for a publicly-traded concern, until his retirement in December 2013.

The Board believes that Mr. Campbell utilizes that experience in his service as a member of the Compensation Committee.

R. CRAIG CARLOCK

 

Director since 2015

Age 5053


Mr. Carlock has served as the Company’s Lead Independent Director since May 2019. He has served as the Chief Executive Officer and a director of Omega Sports, Inc since April 2017. Prior to Omega Sports, Inc., he served as the President and Chief Executive Officer of The Fresh Market from January 2009 to January 2015 and as a member of its board of directors from June 2012 to January 2015. He began his career with The Fresh Market in 1999 and served in various capacities culminating with the position of President and Chief Executive Officer. During his time with The Fresh Market, Mr. Carlock served as its Executive Vice President and Chief Operating Officer as well as its Senior Vice President – StorePresident-Store Operations, Vice President –MerchandisingPresident-Merchandising and Marketing, and Director of Merchandising & Marketing Strategy. Prior to joining The Fresh Market, Mr. Carlock was Financial Manager, Fabric Care Category, at Procter & Gamble Company.

4

Qualifications.

Qualifications. The Board believes that Mr. Carlock’s leadership experience is invaluable to management and the Board in, among other things, the areas of strategy, development and corporate governance.

The Board believes that Mr. Carlock utilizes that experience in his service as a member of the Audit Committee and Chairman of the Compensation Committee.

C. JOHN LANGLEY, JR., Ph.D.

 

Director since 2004

Age 7174


Dr. Langley has served as Clinical Professor of Supply Chain Management and Director of Development for The Center for Supply Chain Research at The Pennsylvania State University since 2011. Formerly, Dr. Langley served as Professor of Supply Chain Management at the Georgia Institute of Technology from September 2001 until October 2010, and from September 1973 until July 2001, he was the John H. Dove Professor of Logistics and Transportation at the University of Tennessee. Dr. Langley is a Director of Averitt Express, Inc. In addition, he was a Director of UTi Worldwide, Inc. until its sale in 2016. He served on its audit committee and nominations and corporate governance committee.

Qualifications.

Qualifications. Dr. Langley has spent over 40 years teaching, lecturing and consulting in the logistics field. HeThe Board believes that he brings a breadth of knowledge and experience that the Board and management relies upon in discussing the Company’s strategy and opportunities.

The Board believes that Dr. Langley utilizes that experience in his service as a member of the Compensation Committee.

G. MICHAEL LYNCH

 

Director since 2005

Age 7376


Mr. Lynch served as the Company’s Lead Independent Director from January 2009 to December 2011. He was Executive Vice President and Chief Financial Officer and a member of the Strategy Board for Federal-Mogul Corporation (“Federal-Mogul”) from July 2000 until March 2008. Federal-Mogul is a global manufacturer and marketer of automotive component parts. Prior to joining Federal-Mogul in July 2000, Mr. Lynch worked at Dow Chemical Company, where he was Vice President and Controller. Mr. Lynch also spent 29 years at Ford Motor Company, (“Ford”), where his most recent position was Controller, Automotive Components Division, which ultimately became Visteon


Corporation. While at Ford, Mr. Lynch held a number of varied financial assignments, including Executive Vice President and Chief Financial Officer of Ford New Holland. Mr. Lynch served as Director for Champion Enterprises, Inc. from March 2003 to March 2011, where he served as Chairman of its audit committee.

Qualifications.

Qualifications. Mr. Lynch brings over 40 years’ experience of serving in key positions with Fortune 500 companies, and approximately 10 years’ experience serving as a director on public company boards. The Board believes that Mr. Lynch utilizes that experience in his service as a member of the Corporate Governance and Nominating Committee and as Chairman of the Audit Committee.

DOUGLAS M. MADDEN

THOMAS SCHMITT		 

Director since 2015

2018
Age 55

Mr. Schmitt has served as President, Chief Executive Officer and director since September 2018 and was elected Chairman of the Board in May 2019. Prior to joining Forward Air, he served as Management Board Member and Chief Commercial Officer for DB Schenker, a Global Logistics Company from June 2015 to July 2018. From January 2013 to April 2015, Mr. Schmitt was President, Chief Executive Officer and Director of Aqua Terra, a Canadian provider of natural spring water. From 2010 to 2012, he served as President, Chief Executive Officer and Director of Purolator, a Canadian parcel and freight transportation company. Prior to joining Purolator, Mr. Schmitt spent 12 years at FedEx in Memphis, Tennessee where he served as Chief Executive Officer of FedEx Supply Chain and Senior Vice President of FedEx Solutions. Prior to his time with FedEx, Mr. Schmitt held senior roles at McKinsey & Company. He has been a Non-Executive Director of the Ferguson Plc board since February 2019. Mr. Schmitt also served on the board of directors of Dicom Transportation Group from January 2014 to June 2018, Zooplus AG, from June 2013 to May 2016, and Univar, Inc., from August 2008 to May 2013. Mr. Schmitt holds an MBA from the Harvard Business School and received his BA in European Business Administration from Middlesex University.
Qualifications. Mr. Schmitt’s extensive experience in senior leadership positions at large national and global logistics companies as well as his position as the Company’s Chief Executive Officer provide the Board with significant insight into the Company’s strategy and operations.
LAURIE A. TUCKER 
Director since 2019
Age 6463

Mr. Madden


Ms. Tucker has served as the Founder and Chief Strategy Officer of Calade Partners LLC, a marketing consultancy firm, since January 2014. She previously served as the Senior Vice President, Corporate Marketing of FedEx Services, Inc., a subsidiary of FedEx Corporation, from 2000 until she retired in December 2013. She was employed by FedEx in various capacities of increasing experience and responsibilities since 1978. Ms. Tucker has served as a director of publicly traded companies, such as, Alliance Data Systems, since May 2015 and Iron Mountain Incorporated from May 2007 to May 2014. Ms. Tucker holds a B.B.A. in Accountancy and an M.B.A. in Finance from the University of Memphis.
Qualifications. Ms. Tucker’s 35 years of experience at FedEx provides the Board with valuable insight with respect to corporate marketing strategies and large-scale operations. The Board believes that her experience overseeing finance, pricing, technology and customer technology will benefit the Audit Committee.
W. GILBERT WEST
Director since 2018
Age 59

Mr. West has served as Senior Executive Vice President and Chief Operating Officer of Celanese Corporation, a specialty chemicalDelta Air Lines (“Delta”) since February 2016 and technology company (“Celanese”), from December 2009 untilpreviously served in various leadership positions since he began his retirementcareer with Delta in March 2013. Prior to his appointment to the Chief Operating Officer position, Mr. Madden2008. He previously served as Executive Vice President with responsibilities for Celanese’s Acetyl Intermediates and Industrial Specialties Group as well as executive responsibilityCEO of Laidlaw Transit Services from 2006 to 2007. He also has been a member of the Brevard College Board of Trustees in North Carolina since October 2017. He served from 2014 to 2016 on the Board of Directors for the Asia Pacific Region. During his nearly 30 years with Celanese,American Cancer Society and from 2008 until 2014, he was


member of its Executive Leadership Council. He has served in many executive leadership roles including Presidenton the Board of Consumer Specialties Segment and President of Advanced Engineered Materials Segment. Earlier in his career, he held other leadership roles at Celanese, including Head of Global Supply Chain; Vice President and Chief Financial Officer of Technical Fibers; Vice

5

President-Finance of Hoechst Roussel Pharmaceuticals, a joint venture company with Celanese; and Vice President of Corporate Business Support Functions. Before joining Celanese, Mr. Madden served in operations and distribution management roles within Warner-Lambert Co. and Johnson & Johnson.

Directors for Wheels Up Partners LLC since January 2020.

Qualifications. Mr. Madden brings substantial strategic knowledgeWest has significant operational experience including leading the operations of very large and distinctive business experiencediverse transportation and manufacturing companies which is invaluable to the Board which is essential toas it assists in developing the Company’s strategic goals, oversees senior management and evaluates Company performance. The Board believes that Mr. West utilizes that experience in his service as a member of the Board.

6

Compensation Committee and the Corporate Governance and Nominating Committee.





CORPORATE GOVERNANCE

Independent Directors

The Company’s common stock is listed on The NASDAQNasdaq Stock Market LLC (“Nasdaq”). Nasdaq requires that a majority of the Company’s directors be “independent directors,” as defined in Nasdaq Marketplace Rule 5605. Generally, a director does not qualify as an independent director if, among other reasons, the director (or in some cases, members of the director’s immediate family) has, or in the past three years has had, certain material relationships or affiliations with the Company, its external or internal auditors, or other companies that do business with the Company. The Board has affirmatively determined that eightnine of the Company’s nineten current directors are “independent directors” on the basis of Nasdaq’s standards and a review of each director’s responses to questionnaires asking about any material relationships or affiliations with us.

The independent directors are Ronald W. Allen, Ana B. Amicarella, Valerie A. Bonebrake, C. Robert Campbell, R. Craig Carlock, C. John Langley, Jr., Tracy A. Leinbach, Larry D. Leinweber, G. Michael Lynch, Laurie A. Tucker and Douglas M. Madden.

W. Gilbert West.

Corporate Governance Guidelines

The Board has adopted Corporate Governance Guidelines that give effect to Nasdaq’s requirements related to corporate governance and various other corporate governance matters. The Company’s Corporate Governance Guidelines reflect the Board’s commitment to monitor the effectiveness of policy and decision making both at the Board and management level, with a view to enhancing long-term shareholder value. The topics addressed in our Corporate Governance Guidelines include, among other things:

include:
Chairman and Lead independent director;Independent Director;

Independence of the Board;

New directors, Board membership criteria and role of the Board;

Committees of the Board;Board and related matters;

Director orientation and continuing education;

Independent director stock ownership guidelines;

Self-evaluation by the Board;
Director change in status and resignation policy in uncontested elections; and

Leadership development and succession planning.planning; and

Shareholder communications with the Board.
The Company’s Corporate Governance Guidelines are available through the Investor Relations—Governance link on the Company’s Investors website, which can be accessed at www.forwardaircorp.com.

Independent Director Meetings

Pursuant to the Company’s Corporate Governance Guidelines, the Company’s independent directors meet in executive session without management on a regularly scheduled basis, but not less frequently than quarterly. The Lead Independent Director presides at such executive sessions or, in his or her absence, an independent director designated by such Lead Independent Director.

Interested parties who wish to communicate with the Chairman of the Board, Lead Independent Director, or the independent directors as a group should follow the procedures found below under “Shareholder Communications.”

7

Director Nominating Process

Shareholders wishing to communicate with the Corporate Governance and Nominating Committee concerning potential director candidates may do so by corresponding withwriting to the Corporate Secretary at Forward Air Corporation, 1915 Snapps


Ferry Road, Building N, Greeneville, Tennessee 37745, and including the name and biographical data of the individual being suggested.

All recommendations should include the written consent of the nominee to be nominated for election to the Board. To be considered, the Company must receive recommendations at least 90 calendar days but not more than 120 calendar days prior to the one yearone-year anniversary of the prior year’s Annual Meeting of Shareholders and include all required information to be considered. In the case of the 20182021 Annual Meeting of Shareholders, this deadline is between January 9, 201813, 2021 and February 8, 2018.12, 2021. All recommendations will be brought to the attention of the Corporate Governance and Nominating Committee.

The Corporate Governance and Nominating Committee annually reviews the appropriate experience, skills and characteristics required of Board members in the context of the current membership of the Board. This assessment includes among other relevant factors in the context of the perceived needs of the Board at that time, the possession of such knowledge, experience, skills, expertise and diversity to enhance the Board’s ability to manage and direct the affairs and business of the Company.

The Board has established the following process for the identification and selection of candidates for director. The Corporate Governance and Nominating Committee, in consultation with the Chairman of the Board and Lead Independent Director, if any, periodically examines the composition of the Board and determines whether the Board would better serve its purposes with the addition of one or more directors. If the Corporate Governance and Nominating Committee determines that adding a new director is advisable, the Corporate Governance and Nominating Committee initiates the search, working with other directors and management and, if appropriate or necessary, a third-party search firm that specializes in identifying director candidates.

The Corporate Governance and Nominating Committee will consider all appropriate candidates proposed by management, directors and shareholders. Information regarding potential candidates shall be presented to the Corporate Governance and Nominating Committee, and it shall evaluate the candidates based on the needs of the Board at that time and the candidates’ knowledge, experience, skills, expertise and diversity, as set forth in the Company’s Corporate Governance Guidelines. In particular, the Board and the Corporate Governance and Nominating Committee believe that the Board should be comprised of a well-balanced group of individuals. Although the Board does not have a formal policy regarding board diversity, theThe Board believes that having diversity of knowledge, experience, skills and expertise among its members enhances the Board’s ability to make fully informed, comprehensive decisions.

The Corporate Governance and Nominating Committee also believes that diversity of race, ethnicity and gender are important factors in evaluating candidates for nominees. Accordingly, the Board is committed to including diverse individuals, including women and people of color in each candidate pool from which non-management director nominees are selected. To that end, since July 2017, the Board has added Ana B. Amicarella, who identifies as Hispanic, Valerie A. Bonebrake (January 2018) and Laurie A. Tucker (October 2019) to its Board.
diversity.jpg
Potential candidates will be evaluated according to the same criteria, regardless of whether the candidate was recommended by shareholders, the Corporate Governance and Nominating Committee, another director, Company management, a search firm or another third party, except that in the case of shareholder recommendations, the Corporate Governance and Nominating Committee may also take into consideration the number of shares of Company stock held by the recommending shareholder and the length of time that such shares have been held. The Corporate Governance and Nominating Committee will submit any recommendedits director candidate(s) recommendation to the Board for approval and recommendation to the shareholders.

8



Annual Performance Evaluations

The Company’s Corporate Governance Guidelines provide that the Board shall conduct an annual evaluation to determine, among other matters, whether the Board and the Committeescommittees are functioning effectively. The Audit Committee, Compensation Committee and Corporate Governance and Nominating Committee are also required to each conduct an annual self-evaluation. The Corporate Governance and Nominating Committee is responsible for overseeing this self-evaluation process.

The Board also conducts Board evaluations. In 2019, the Board conducted its self-evaluation and a Lead Independent Director evaluation.

Code of Business Conduct and Ethics

The Board has adopted a Code of Business Conduct and Ethics that applies to all Company employees, officers and directors, which is available through the Investor Relations—Governancegovernance link on the Company’s Investors website, which can be accessed at www.forwardaircorp.com. The Code of Business Conduct and Ethics complies with Nasdaq and Securities and Exchange Commission (the “SEC”) requirements. The Company will also mail the Code of Business Conduct and Ethics to any shareholder who requests a copy. Requests may be made by contacting the Secretary as described below under “Shareholder Communications.”

Board Attendance

The Company’s Corporate Governance Guidelines provide that all directors are expected to regularly attend meetings of the Board and committees on which they serve and are also expected to attend the Annual Meeting of Shareholders. During 2016,2019, the Board held sevenfive meetings. All of the incumbent directors who were on the Board during 20162019 attended at least 75% of the aggregate number of meetings of the Board and meetings of committees of the Board on which theyhe or she served during 2016. There were nine directors2019. All of the Board members at the time of the 20162019 Annual Meeting of Shareholders and all nine incumbent directors attended the 20162019 Annual Meeting of Shareholders.

Board Committees

The Board presentlycurrently has four standing committees: an Executive Committee, an Audit Committee, a Compensation Committee, and a Corporate Governance and Nominating Committee, and an Executive Committee.
The charters of the Audit Committee, Compensation Committee and Corporate Governance and Nominating Committee, are available through the Investor Relations—Governancegovernance link on the Company’s Investors website, which can be accessed at www.forwardaircorp.com. With the exception of the Executive Committee, each committee has authority to engage legal counsel or other experts or consultants as it deems appropriate to carry out its responsibilities. Additional information regarding the functions of the Board’s committees, the number of meetings held by each committee during 20162019 and their present membership is set forth below.

The Board nominated each of the nominees for election as a director and each nominee currently is a director. Assuming election of all of the director nominees, the following is a list of persons who will constitute the Board following the meeting, including their current committee assignments.

Name

  Audit  Compensation  Executive  Corporate
Governance and
Nominating

Bruce A. Campbell

      X  

C. Robert Campbell

      X  

Ronald W. Allen

    X  X  Chair

R. Craig Carlock

  X      

C. John Langley, Jr.

    Chair    

G. Michael Lynch

  Chair      X

Douglas M. Madden

  X  X    
  

 

  

 

  

 

  

 

Number of Meetings in 2016

  4  5  0  3

9

*Ms. Leinbach and Mr. Leinweber will retire from our Board effective immediately prior to the Annual Meeting and will not stand for



committeeassignments.jpg
re-election.Audit Committee.

ExecutiveCommittee. The Executive Committee is authorized, to the extent permitted by law and the Bylaws of the Company, to act on behalf of the Board on all matters that may arise between regular meetings of the Board upon which the Board would be authorized to act, subject to certain materiality restrictions established by the Board.

AuditCommittee. The Audit Committee is responsible for overseeingoversees the Company’s financial reporting process on behalf of the Board. The Audit Committee engagesis responsible for the appointment, compensation and oversight of the Company’s independent registered public accounting firm. As part of this responsibility, the Audit Committee considers the impact of changing its current firm, is involved in selecting the lead partner, and considers the fee arrangement and scope of the audit,audit. The Audit Committee also reviews the financial statements and the independent registered public accounting firm’s report, considers comments made by such firm with respect to the Company’s internal control structure, and reviews the internal audit process and internal accounting procedures and financial controls with the Company’s financial and accounting staff. The Audit Committee may meet in executive session, without management present, on any matter it deems appropriate. In addition, the Audit Committee assists the Board in its oversight of the Company’s legal compliance, ethics and ethicsinformation system controls and security programs. A more detailed description of the Audit Committee’s duties and responsibilities can be found in the Audit Committee Report on page 47pages 47-48 of this Proxy Statement and in the Audit Committee Charter.

The Board has determined that each member of the Audit Committee meets the independence requirements under Nasdaq listing standards and the enhanced independence standards for audit committee members required by the SEC. In addition, the Board has determined that each memberof Ana B. Amicarella and G. Michael Lynch of the Audit Committee meetsmeet the definition of an “audit committee financial expert,” as that term is defined by the rules and regulations of the SEC.

CompensationCommittee. The Compensation Committee is responsible for determining the overall compensation levels of the Company’s executive officers and reviewing, approving and administering the Company’s employee incentive plans and other employee benefit plans. The Committee is also responsible for recommending the compensation for non-employee directors. It also reviews, approves and make recommendations, as necessary, to the Board with respect to the Company’s policies and procedures relating to executive officer or director compensation, such as, any clawback policy, stock ownership guidelines, or pledging or hedging policy.
Additionally, it reviews and approves the Compensation Discussion and Analysis for inclusion in the proxy statement (see pages19-35 20-36 of this Proxy Statement). Furthermore, the Compensation Committee oversees management succession planning along with the Corporate Governance and Nominating Committee.

In fulfilling its responsibilities, the Compensation Committee may delegate its responsibilities to a subcommittee consisting of members of the Compensation Committee and, to the extent not expressly reserved to the Compensation Committee by the Board or by applicable law, rule or regulation, to any other committee consisting entirely of independent directors. The Company’s Chief Executive Officer may not be present during deliberations or voting regarding his or her compensation. To the extent helpful to the work of the Compensation Committee, however, the Company’s Chief Executive Officer may be invited by the Compensation Committee to participate in discussion relating to his or her compensation that may precede further deliberation or voting.



The Compensation Committee engaged Meridian Compensation Partners, LLC (“Meridian”), an independent consultant, to assist it during 2016.2019. During the year, the consultant reviewed materials prepared by management and provided the Compensation Committee with information on compensation trends, best practices and changes in the regulatory environment, in addition to providing executive compensation benchmarking information. Meridian provided no services other than those related to executive and director pay and related governance.

10

The Board has determined that each member of the Compensation Committee is independent pursuant to Nasdaq listing standards, and Rule16b-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”). In addition, the Compensation Committee, considering all relevant factors, including those set forth in Rule10C-1(b) 10C-l(b)(4)(i) through (vi) under the Exchange Act and the Nasdaq listing standards, is not aware of any conflict of interest that has been raised by the work performed by Meridian.

CorporateGovernanceandNominatingCommittee. The Corporate Governance and Nominating Committee is responsible for identifying individuals qualified to become Board members and recommending them to the Board for consideration. This responsibility includes all potential candidates, whether initially recommended by management, other Board members or shareholders. In addition, the Corporate Governance and Nominating Committee makes recommendations to the Board for Board committee assignments, develops and annually reviews corporate governance guidelines for the Company,Company’s Corporate Governance Guidelines, and otherwise oversees corporate governance matters. The Corporate Governance and Nominating Committee is also responsible for overseeing the annual evaluation of the Board and for periodically reviewing and making recommendations to the Board regarding director compensation for the Board’s approval. The Corporate Governance and Nominating Committee also reviews the Company’s environmental, social and governmental policies, as well as manages sustainability-related risks and makes recommendations that it deems appropriate. Furthermore, the Corporate Governance and Nominating Committee oversees management succession planning along with the Compensation Committee.

The Corporate Governance and Nominating Committee may meet in executive session, without management present, on any matter it deems appropriate.

A description of the Committee’s policy regarding director candidates nominated by shareholders appears in the section titled “Director Nominating Process” above. The Board has determined that each member of the Corporate Governance and Nominating Committee is independent pursuant to Nasdaq listing standards.

Executive Committee. The Executive Committee is authorized, to the extent permitted by law and the Bylaws of the Company, to act on behalf of the Board on all matters that may arise between regular meetings of the Board upon which the Board would be authorized to act, subject to certain materiality restrictions established by the Board.
Compensation Committee Interlocks and Insider Participation

Participations

During 2016, none of the fiscal year ended December 31, 2019, Ronald W. Allen, R. Craig Carlock, C. John Langley Jr., W. Gilbert West and C. Robert Campbell served as members of the Compensation CommitteeCommittee. None of these directors was, during 2019, an officer or employee of theour Company, and no executiveor was formerly an officer of the Companyour Company. There were no transactions in 2019 between us and any directors who served as Compensation Committee members for any part of 2019 that would require disclosure by us under SEC rules requiring disclosure of certain relationships and related party transactions. During 2019, none of our executive officers served as a director of another entity, one of whose executive officers served on theour Compensation Committee, or boardand none of any company that employed anyour executive officers served as a member of the Company’s Compensation Committee orcompensation committee of another entity, whose executive officers served as a member of our Board. Accordingly, there were no interlocks with other companies within the meaning of the SEC’s proxy rules during 2016.

2019.

Certain Relationships and Related Person Transactions

The Audit Committee of the Board reviews all relationships and transactions in which the Company and its directors and executive officers or their immediate family members are participants to determine whether such persons have a direct or indirect material interest. Other than as provided in the Audit Committee Charter, the Company does not have a written policy governing related personrelated-person transactions. The Company’s legal staff is primarily responsible for the development and implementation of processes and controls to obtain information from the directors and executive officers with respect to related person transactions and for then determining, based on the facts and circumstances,


whether the Company or a related person has a direct or indirect material interest in the transaction. As required under SEC rules, transactions that are determined to be directly or indirectly material to the Company or a related person are required to be disclosed in a company’s proxy statement. In addition, the Audit Committee reviews and approves or ratifies any related person transaction that is required to be disclosed. In the course of its review and approval or ratification of a disclosable related person transaction, the Audit Committee considers:

the nature of the related person’s interest in the transaction;

the material terms of the transaction, including, without limitation, the amount and type of transaction;

11

the importance of the transaction to the related person; and

the importance of the transaction to the Company.

Any member of the Audit Committee who is a related person with respect to a transaction under review may not participate in the deliberations or vote respecting approval or ratification of the transaction, provided, however, that such director may be counted in determining the presence of a quorum at a meeting of the Audit Committee when considering the transaction.

Based on information provided by the directors, director nominees and executive officers, and the Company’s legal department, the Audit Committee determined that there are no related person transactions to be reported in this Proxy Statement.

Board Leadership Structure

In accordance with our Bylaws and Corporate Governance Guidelines, the Board is responsible for selecting the Chief Executive Officer and the Chairman of the Board, and both of these positions may be held by the same person or they may be held by two persons. The Company’s Corporate Governance Guidelines require the election, by the Board, of an independent lead director to serve during any period when there is no independent Chairman of the Board. Currently, C. Robert CampbellR. Craig Carlock serves as Lead Independent Director and he has served in that capacity since May of 2014.

The2019.

Other than a six-month period beginning in September 2018, during which our newly-appointed Chief Executive Officer, Thomas Schmitt, has not served as Chairman, the Company has operated for over nineten years using a board leadership structure inunder which the Chief Executive Officer also serves as Chairman of the Board. The Board believes that the Company with its currenthas been well-served in having a combined Chief Executive Officer and Chairman, has been well-served by this leadership structure. HavingChairman. The Board believes that having Mr. CampbellSchmitt serve as both Chief Executive Officer and Chairman of the Board demonstrates for the Company’s employees, suppliers, customers and other stakeholders that the Company is under strong leadership, with a single person setting the tone and having primary responsibility for managing its operations. The Board believes having Mr. CampbellSchmitt serve as Chief Executive Officer and Chairman of the Board is best for the Company and its shareholders at the present time. He has led the Company as Chief Executive Officer since 2003, has worked with two Chairmen and four Lead Independent Directors, is a recognized leader in the transportation industry and has all of the skills incumbent to serve as a board chair.

our Board’s Chairman.

The Chairman of the Board is responsible for (a) chairing Board meetings and the Annual Meeting, (b) setting the agendas for these meetings, (c) attending Board committee meetings and (d) providing information to Board members in advance of each Board meeting and between Board meetings. The Lead Independent Director is responsible for (i) chairing executive sessions of the independent directors and communicating with management relating to these sessions, and presiding at all meetings of the Board at which the Chairman is not present, (ii) approving agendas and schedules for Board meetings and the information that is provided to directors, and (iii) serving as a liaison between the Chairman and the independent directors. The Lead Independent Director also has the authority to call meetings of the independent directors.

The Board believes that, in addition to fulfilling our lead director responsibilities, the Lead Independent Director makes valuable contributions to the Company, including but not limited to: (a) monitoring the performance of the Board and seeking to develop a high-performing Board, for example, by helping the directors reach consensus, keeping the Board focused on strategic decisions, taking steps to ensure that all the directors are contributing to the work of the Board, and coordinating the work of the four Board Committees, (b) developing a productive relationship with our Chief Executive Officer and ensuring

12

effective communication between the Chief Executive Officer and the Board,



and (c) ensuring and supporting effective shareholder communications. Accordingly, the Board believes that the Company has benefited from having the Chairman/Chief Executive Officer as the leader of the Company, and having the Lead Independent Director serving as the leader of the independent directors.

On an annual basis, as part of our review of corporate governance and succession planning, the Board (led by the Corporate Governance and Nominating Committee) evaluates the Board’s leadership structure, to ensure that it remains the optimal structure for the Company and its shareholders. The Board recognizes that different board leadership structures may be appropriate for companies with different histories and cultures, as well as companies with varying sizes and performance characteristics. The Board believes its current leadership structure—understructure-under which the Chief Executive Officer serves as Chairman of the Board, the Board Committeescommittees are chaired by independent directors and a Lead Independent Director assumes specified responsibilities on behalf of the independent directors—isdirectors-is presently the optimal board leadership structure for the Company and its shareholders.

Risk Oversight

On at least a quarterly basis, the Company’s Chief Legal Officer provides a comprehensive risk report to the Audit Committee and the Board. While the Audit Committee has primary responsibility for overseeing financial risks and information system controls and security risks, the Board is charged with overseeing the Company’s enterprise risks. Accordingly, on an annual basis, the Board receives a report from the Company’s Chief Legal Officer on the most significant risks that the Company is facing. The full Board also engages in periodic discussions about enterprise risk management with our Chief Legal Officer, Chief Executive Officer, Chief Financial Officer, Chief Information Officer and other Company officers as the Board may deem appropriate. In addition, each of our Board Committeescommittees considers the risks within its area of responsibilities. For example, the Compensation Committee considers the risks that may be implicated by the Company’s executive compensation programs, and the Corporate Governance and Nominating Committee considers the best governance structure and guidelines for the Company to minimize enterprise risks brought about by weak governance. The Corporate Governance and Nominating Committee also oversees the Company’s environmental, social and governance policies and activities and any associated risks. The Board believes that its leadership structure supports the Board’s effective oversight of the Company’s enterprise risks.

13

Corporate Sustainability and Responsibility
At Forward Air, our mission is to create long-term value for our shareholders, customers and employees while having a positive impact on the communities in which we live and work. We strive to integrate social responsibility and environmental sustainability into every aspect of our strategy - from how we engage with employees and local communities to offering more sustainable products and services to customers. Our commitment to this mission requires us to adhere to a strong corporate governance program that includes policies and principles that integrate environmental, social and governance (“ESG”) matters into our broader risk management and strategic planning initiatives.
During fiscal 2019, the Board amended the Corporate Governance and Nominating Committee charter to reflect that the committee would review and discuss with management, at least quarterly, the Company’s (i) environmental, social and governance matters and (ii) management of sustainability-related risks. The Corporate Governance and Nominating Committee provides leadership and oversight of our ESG practices, including oversight of our policies and programs related to environmental sustainability, health and safety, diversity and inclusion, and charitable giving.
To facilitate our ESG initiatives, we appointed a head of Corporate ESG in the first quarter of 2020. We also have engaged a third-party to conduct an ESG materiality assessment during the first half of 2020. Our intent is to build upon this work to develop a more robust ESG strategy, institutionalize processes and begin to provide more public disclosure around activities and performance going forward.


DIRECTOR COMPENSATION

The general policy of the Board is that compensation fornon-employee directors should be a mix of cash and equity-based compensation. The Company does not pay employee directors for Board service in addition to their regular employee compensation.

The Corporate Governance and Nominating Committee, which consists solely of independentnon-employee directors, has the primary responsibility for reviewing and considering any revisions to thenon-employee director compensation program.

In accordance with the Corporate Governance and Nominating Committee’s recommendations, thenon-employee directors’ cash compensation program is as follows:

an annual cash retainer of $70,000 for all non-employee directors;
an additional annual cash retainer of $50,000 for allnon-employee directors;the Lead Independent Director;

an additional annual cash retainer of $35,000$20,000 for the Lead Independent Director;Audit Committee Chair;

an additional annual cash retainer of $15,000 for the Audit Committee Chair;

an additional annual cash retainer of $7,500$20,000 for the Corporate Governance and Nominating Committee Chair;

an additional annual cash retainer of $20,000 for the Compensation Committee Chair; and
an additional annual cash retainer of $10,000 for the Compensation Committee Chair; and

an additional annual cash retainer of $8,500 for allnon-Chair Audit Committee members, an additional annual cash retainer of $7,000$10,000 for allnon-Chair Compensation Committee members and an additional annual cash retainer of $5,000$10,000 for allnon-Chair Corporate Governance and Nominating Committee members.

All directors are reimbursed reasonable travel expenses for meetings attended in person. The Company also reimburses directors for expenses associated with participation in continuing director education programs.

In addition, effective May 22, 2007, the Company’s shareholders approved the Company’s Amended and RestatedNon-Employee Director Stock Plan, as further amended on February 8, 2013 and January 25, 2016 (the “Amended Plan”). Under the Amended Plan, on the first business day after each Annual Meeting of Shareholders, eachnon-employee director is automatically granted an award (the “Annual Grant”) in such form and size as the Board determines from year to year. Unless otherwise determined by the Board, the Annual Grants will become vested andnon-forfeitable on the earlier of (a) the day immediately prior to the first Annual Meeting that occurs after the grant date or (b) the first anniversary of the grant date, so long as thenon-employee director’s service with the Company does not earlier terminate. In both 2015 and 2016,2019, eachnon-employee director received restricted shares valued at $86,000 pursuant to the Amended Plan.

$115,000.

Finally, the Board believes that directors more effectively represent the Company’s shareholders, whose interests they are charged with protecting, if they are shareholders themselves. Therefore, the Board established certain independent director stock ownership guidelines which are set forth in the Company’s Corporate Governance Guidelines. Specifically, the Company’s independent directors are required to own shares of the Company’s common stock, with a value equal to at least threefive times the annual cash retainer for independent directors. Each new independent director has three years from the date he or she joins the Board to obtain this ownership stake. With the exceptionAs of Mr. Madden and Mr. Carlock, both of whom joined the Board in 2016,March 11, 2020, each independent director has achieved the stock ownership guidelineswas in compliance with his or her individual retention requirements as set forth in the

14

Company’s Corporate Governance Guidelines. The following table shows the compensation the Company paid in 20162019 to itsnon-employee directors. The Company does not pay employee directors for Board service in addition to their regular employee compensation.

Name

  Fees Paid
in Cash
($)		   Stock
Awards
($) (1)		   Dividends
($) (2)		   Total
($)		 

Ronald W. Allen

  $60,750   $86,000   $963   $147,713 

C. Robert Campbell

   85,000    86,000    3,562    174,562 

R. Craig Carlock

   58,500    86,000    963    145,463 

C. John Langley, Jr.

   60,000    86,000    963    146,963 

Tracy A. Leinbach

   62,000    86,000    5,965    153,965 

Larry D. Leinweber

   62,000    86,000    963    148,963 

G. Michael Lynch

   68,000    86,000    963    154,963 

Douglas M. Madden

   61,250    86,000    963    148,213 

Gary L. Paxton

   23,214    —      197    23,411 

(1)Represents the aggregate grant date fair value of non-vested restricted shares and deferred stock unit  awards. The fair values of these awards were determined in accordance with FASB ASC Topic 718. The assumptions used in determining the grant date fair value of these awards are set forth in the notes to the Company’s consolidatedfinancial statements, which are included in our Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC.
(2)Represents dividend payments onnon-vested restricted shares or dividend equivalents credited on deferred stock unit awards granted during 2016 and 2015. These dividend payments and dividend equivalents arenon-forfeitable.

15



comp1.jpg
The following table indicates the aggregate number of outstanding options held by each incumbent director at the end of 2016, and the aggregate number of deferred stock units ornon-vested restricted shares held by each incumbent director at the end of 20162019 and those shares or units that have not yet vested.

Name

Number of Securities
Underlying Unexercised
Options Exercisable (#)		Number of Shares or
Units of Stock Held
That Have Not Vested

Ronald W. Allen

—  1,965

C. Robert Campbell

—  7,095

R. Craig Carlock

—  1,965

C. John Langley, Jr.

—  1,965

Tracy A. Leinbach

—  11,514

Larry D. Leinweber

—  1,965

G. Michael Lynch

—  1,965

Douglas M. Madden

—  1,965

16

deferredstockornonvestedshar.jpg





SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth information with respect to the beneficial ownership of shares of our outstanding common stock held as of the Record Date by (i) each director and director nominee; (ii) our Chief Executive Officer, Chief Financial Officer, each of the next three most highly compensated executive officers, as required by SEC rules (collectively, the “Named Executive Officers”named executive officers, or the “NEOs”); and (iii) all directors and executive officers as a group. The table also sets forth information as to any person, entity or group known to the Company to be the beneficial owner of 5% or more of the Company’s common stock as of December 31, 2016.

2019.

Under SEC rules, a person is deemed to be a “beneficial owner” of a security if that person has or shares the power to vote or direct the voting of the security, has or shares the power to dispose of or direct the disposition of the security, or has the right to acquire the security within 60 days. Except as otherwise indicated, the shareholders listed in the table are deemed to have sole voting and investment power with respect to the common stock owned by them on the dates indicated above. Shareholders ofnon-vested restricted shares included in the table are entitled to voting and dividend rights.

   Shares Beneficially Owned 

Name and Address of Beneficial Owner (1)

  Number         Percent (%) (2)(3) 

Directors, Nominees and Named Executive Officers

      

Bruce A. Campbell

   326,011   (4)     1.1 

Ronald W. Allen

   10,435   (5)       * 

C. Robert Campbell

   24,186   (6)       * 

R. Craig Carlock

   2,922   (7)       * 

C. John Langley, Jr.

   22,859   (8)       * 

Tracy A. Leinbach

   25,451   (9)       * 

Larry D. Leinweber

   13,518   (10)       * 

G. Michael Lynch

   14,426   (11)       * 

Douglas M. Madden

   3,059   (12)       * 

Michael J. Morris

   9,948   (13)       * 

Rodney L. Bell

   36,724   (14)       * 

Michael L. Hance

   46,237   (15)       * 

Matthew J. Jewell

   79,715   (16)       * 

Chris C. Ruble

   53,443   (17)   (18)      * 

All directors and executive officers as a group (16) persons

   725,497   (19)     2.4 

Other Principal Shareholders

      

BlackRock, Inc.

   3,529,312   (20)     11.7 

The Vanguard Group, Inc.

   2,564,598   (21)     8.5 

Arrowpoint Asset Management, LLC

   1,937,340   (22)     6.4 

Neuberger Berman Group LLC

   1,794,386   (23)     6.0 

Invesco Ltd.

   1,653,491   (24)     5.5 

Royce & Associates, LP

   1,634,978   (25)     5.4 

*Less than one percent.
(1)The business address of each listed director, nominee and Named Executive Officer is c/o Forward Air Corporation, 1915 Snapps Ferry Road, Building N, Greeneville, Tennessee 37745.
(2)The percentages shown for directors, nominees and Named Executive Officers are based on 30,260,107 shares of common stock outstanding on the Record Date.
(3)The percentages shown for other principal shareholders are based on 30,090,335 shares of common stock outstanding on December 31, 2016.

17

(4)Includes 137,776 options that are fully exercisable and 20,280non-vested restricted shares
(5)Includes 1,965non-vested restricted shares
(6)Includes 1,965non-vested restricted shares and 502 deferred stock units
(7)Includes 1,965non-vested restricted shares
(8)Includes 1,965non-vested restricted shares
(9)Includes 1,965non-vested restricted shares and 642 deferred stock units
(10)Includes 1,965non-vested restricted shares
(11)Includes 1,965non-vested restricted shares
(12)Includes 1,965 non-vested restricted shares
(13)Includes 9,948non-vested restricted shares
(14)Includes 6,933 options that are fully exercisable and 1,995non-vested restricted shares
(15)Includes 27,442 options that are fully exercisable and 4,702non-vested restricted shares
(16)Includes 43,902 options that are fully exercisable and 4,702non-vested restricted shares
(17)Includes 33,115 options that are fully exercisable and 4,702non-vested restricted shares
(18)Includes 29 shares of Common Stock owned by Mr. Ruble’s child with whom he shares voting and investment power with respect to such shares
(19)Includes 65,184non-vested restricted shares, 227,091 options that are fully exercisable and 1,144 deferred stock units
(20)BlackRock, Inc. (“BlackRock”), 55 East 52nd Street, New York, New York 10055, reported beneficial ownership of the shares as of December 31, 2016 in a Schedule 13G/A filed with the SEC. BlackRock, a holding company, reported having sole voting power over 3,460,715 shares and sole dispositive power over 5,529,312 shares.
(21)The Vanguard Group, Inc. (“Vanguard”), 100 Vanguard Boulevard, Malvern, Pennsylvania 19355, reported beneficial ownership of the shares as of December 31, 2016 in a Schedule 13G/A filed with the SEC. Vanguard, an investment adviser, reported having sole voting power over 59,318 shares, shared voting power over 3,746 shares, shared dispositive power over 2,503,088 shares and sole dispositive power over 61,510 shares.
(22)Arrowpoint Asset Management, LLC (“Arrowpoint”), 100 Fillmore Street, Suite 325, Denver, Colorado 80206, reported beneficial ownership of the shares as of December 31, 2016 in a Schedule 13G filed with the SEC. Arrowpoint, an investment adviser, reported having sole voting power over 1,937,340 shares and sole dispositive power of 1,927,340 shares.
(23)Neuberger Berman Group LLC (“Neuberger”), 1290 Avenue of the Americas, New York, New York 10104, reported beneficial ownership of the shares as of December 31, 2016 in a Schedule 13G/A filed with the SEC. Neuberger, a holding company, reported having shared voting power over 1,794,386 shares and shared dispositive power over 1,794,386 shares.
(24)Invesco Ltd., 1555 Peachtree Street NE, Suite 1800, Atlanta, Georgia 30309, reported beneficial ownership of the shares as of December 31, 2016 in a Schedule 13G/A filed with the SEC. Invesco, an investment adviser and holding company, reported having sole voting power over 1,653,491 shares and sole dispositive power over 1,653,491 shares.
(25)Royce & Associates, LP (“Royce”), 745 Fifth Avenue, New York, New York 10151, reported beneficial ownership of the shares as of December 31, 2016 in a Schedule 13G/A filed with the SEC. Royce, an investment adviser, reported having sole voting and dispositive power over 1,634,978 shares.

18

beneficialownership1.jpg


beneficialownership2.jpg




COMPENSATION DISCUSSION AND ANALYSIS

This Compensation Discussion and Analysis (“CD&A”) is designed to provide our shareholders with a clear understanding of our compensation philosophy and objectives, compensation-setting process, and the compensation elements and decisions of our named executive officers, or NEOs.NEOs, and the compensation decisions and outcomes that occurred during the 2019 performance year. As discussed in Proposal 3, we are conducting our annual Say on Pay vote that requests your approval of the compensation of our NEOs as described in this section and in the tables and accompanying narrative. To assist you with this vote, please review our compensation philosophies, the design of our executive compensation programs and how, we believe, these programs have contributed to and are alignedin line with our performance.

For 2016,compensation philosophies and objectives, particularly ensuring alignment between the amount of compensation and our NEOs were:

Bruce A. CampbellChairman, President and CEO
Michael J. MorrisChief Financial Officer
Matthew J.performance against our short and long-term goals.
neo.jpg
During 2019, Mr. Jewell
President, Logistics Services
Chris C. RublePresident, Expedited Services
Michael L. HanceSenior Vice President, Chief Legal Officer and Secretary
Rodney L. BellFormer Senior Vice President and Chief Financial Officer

Michael J. Morris was appointed as our CFO, effective June 27, 2016, replacing Rodney L. Bell who served asChief Commercial Officer. In that role, Mr. Jewell oversees our CFO since June 2006. Upon therevenue, marketing and business development functions. In connection with Mr. Jewell’s appointment, of Mr. Morris, Mr. Bell continued with us in an advisory position until March 17, 2017.

Ruble was appointed Chief Operating Officer for all business segments including our Intermodal business segment.

Compensation Philosophy and Objectives

The Compensation Committee (the “Committee” for purposes of this Compensation Discussion and Analysis)CD&A) has designed theour executive compensation program to attract, develop, reward and retain quality management talent to facilitate the Company’s achievement of itsour annual, long-term and strategic goals. The Committee’s objective is to align executives’ interests with shareholders’ interests by creating apay-for-performance culture at the executive level, with the ultimate objective of increasing shareholder value. Other objectives are to recognize the contributions of individual executives, provide market competitive pay opportunities and foster retention and executive stock ownership. Thus, while executive compensation should be directly linked to Company performance, the Committee believes it should also be an incentive for executives to continually improve individual performance.

Key Elements of Compensation Plan Design

Ourperformance thereby contributing to our success in meeting our short- and long-term financial, operational and strategic objectives.

Executive Summary
2019 Performance Highlights
During 2019, our executive compensation program is based on the following best practices:

Pay opportunities for executives as a group that are appropriate to the size of the Company;

A pay program that is heavily performance-based using multiple performance measures;

Disclosure of the financial performance metrics and goals used in our incentives;

A long-term incentive program aligned with shareholders through a link to stock price and measurement of stock performance versus peer companies;

Equity-based incentive plans that prohibit backdating and repricing of stock options;

19

Few perquisites and no taxgross-ups on perquisites;

Executive stock ownership and retention guidelines;

Prohibition against hedging and pledging;

Designs that reward prudent risk-taking;

Moderate severance;

Moderatechange-in-control severance amounts and no excise taxgross-ups;

Beginning with 2016 awards, double-trigger vesting on long-term equity awards; and

Retention of an independent compensation consultant engaged by, and who reports directly to, the Committee.

2016 in Brief

In 2016 ourleadership team executed successfully in the face of headwinds created by a sluggish economic environment and low fuel prices. Through operational discipline, we reduced costs, increased efficiency and productivity, and continued to advanceevaluate our business segments, focus on operational excellence and refine our long-term strategic initiatives by investinggoals and objectives. The Company saw record revenue in expanding service offerings, technology and strategic acquisitions. We believe these efforts have positioned the Company well for 2017. Financial2019 despite freight challenges. Notable financial and operational highlights from 20162019 include the following:

ConsolidatedIncreased consolidated operating revenue by $90 million, or 6.8%, to a record $1.4 billion for the year ended December 31, 2019.
Achieved $118.8 million of consolidated income from operations, which was a decrease of $3.3 million, or $2.7%, driven by a $4.7 million increase in loss from other operations due to a $6.5 million vehicle claims reserve recorded in 2019 for pending vehicular claims. This operating income performance resulted in short-term incentive payouts significantly below target opportunity.


Continued execution of our multi-year strategy to increase freight volumes and revenues by offering new and enhanced services that address more of our customers’ premium transportation needs. These services include LTL pickup and delivery, customer label integration, expedited truckload, temperature-controlled shipments, warehousing, drayage, final mile solutions, customs brokerage and shipment consolidation and handling services.
Acquired FSA Logistix, a privately held private mile provider that specializes in last mile logistics for a wide range of American companies, including national retailers, manufacturers, eTailers, and third-party logistics companies. The completion of the FSA acquisition increased our final mile offerings and footprint.
Generated total shareholder return of 29.0% from December 31, 2018 to December 31, 2019.
Executed strategic growth priorities for Intermodal by acquiring certain assets of O.S.T. Logistics, Inc. and O.S.T. Trucking Co., Inc. (together referred to as “OST”) for $12 million. Intermodal’s operating revenue increased by $23.4$2 million, or 2.4%3.7%, to $982.5$54.7 million for the year ended December 31, 20162019.
Generated a record $159.0 million of cash flow from $959.1 millionoperations for the yeartwelve months ended December 31, 2015.

At the segment level, Pool and Truckload Premium Services (“TLS”) were able to increase operating revenue, primarily through new business wins, despite the challenging economic environment. Pool operating revenue increased $18.6 million, or 14.3%, to $148.6 million for the year ended December 31, 2016 from $130.0 million for the year ended December 31, 2015. TLS revenue increased $11.0 million, or 7.2%, to $164.3 million for the year ended December 31, 2016 from $153.3 million in the same period of 2015.

Consolidated adjusted income from operations decreased $3.7 million to $102.4 million for the year ended December 31, 20162019, compared to $106.1$152.6 million in the prior year, down 3.5%. Income from operations was adjusted to exclude a $42.4 million impairment charge related to TQI Holding’s goodwill and other long lived assets. 2015 Income from operations was adjusted to exclude $23.5 million inone-time acquisition and integration costs related to the acquisition of Towne and $1.2 million in professional fees and incentives associated with a $6.9 million income tax benefit recognized during 2015. For a reconciliation of adjusted income from operations, anon-GAAP financial metric, to income from operations, please refer to the reconciliations included in our fourth quarter press release filed with SEC on Form8-K on February 8, 2017.

Expedited LTL’s operating income increased $4.3 million to $83.5 million, or 5.4% for the year ended December 31, 2016, compared to the same period in 2015, despite revenue for the same period decreasing $6.2 million, or 1.1%.

20

Intermodal continued executing its growth strategy by acquiring substantially all of the assets of ACE Cargo, LLC (“Ace”) and Triumph Transport, Inc. and Triumph Repair Service, Inc. (together referred to as “Triumph”), which partially offset decreases in operating revenue resulting from the impact of reduced fuel surcharges, decreased rental and storage revenues and suppressed market conditions.

The Company’s consolidated operating activities generated $130.3 million of net cash for the year ended December 31, 2016 and after2018. After utilizing $52.4$63.9 million in cash in investing activities in 2016,2019, the Company returned $55.5$76.7 million to shareholders through dividends and our stock repurchase program.

Based

Increased free cash flow to a record $134.1 million in the year ended December 31, 2019, compared to $117.3 million in the same period of 2018.
Launched Operation: Forward Freedom on Veterans Day 2019, which is our Company program designed to provide support to our Veterans primarily through partnering with Hope for the Warriors, a nonprofit organization dedicated to restoring a sense of self, family and hope to U.S. military veterans.
Joined Women in Trucking in November 2019. Women in Trucking is a nonprofit organization supporting and celebrating women in the trucking industry.
Continued our partnership with Truckers Against Trafficking, a nonprofit organization that educates, equips and empowers and mobilizes members of the trucking and busing industries to combat human trafficking.


2019 Compensation Highlights
Our financial and operational performance, in 2016 under challenging market conditions, ourpay-for-performance philosophy and the design of our pay programs led to the following Committee actions and plan payouts to our Named Executive OfficersNEOs for 2016:

•Basesalaries. Given that the base salary for Mr. Campbell, our Chief Executive Officer, had increased only an aggregate of 5% from 2013 to 2015, in order to bring his salary nearer to market based on updated market data obtained at the request of the Committee, Mr. Campbell received a 19% increase to his base salary in 2016. Messrs. Jewell and Ruble received base salary increases of 6.7% and 6.5%, respectively, in 2016. Mr. Hance received a 5% base salary increase to bring his pay commensurate with market, and Mr. Bell received no base salary increase in 2016. Mr. Morris joined the Company in 2016.

•Short-termincentivepayouts. Approved payouts under our annual incentive plan at 50% of target, i.e., below target due to aggressive goals set for the year.

•Long-termperformanceplanpayouts. Based on our total shareholder return relative to our peer companies, no performance shares were earned for the February 2014 to February 2017 performance period. If those performance shares had been earned, the value of those performance shares ranged from $0.1 million to $0.5 million for our NEOs.

2019:

Base salaries. Approved base salary increases to our NEOs in January 2019 as follows:
neosalary.jpg
Short-term incentive payouts. Based on operating income performance at the Company and business unit level (as applicable) and individual performance, approved payouts to our NEOs under our annual incentive plan that ranged from 58.5% to 67.0% of target. Mr. Schmitt received a payout of 59.1% of target.
Long-term incentive grants. In order to promote stock ownership and increase the weight of performance shares to 50% of the total target award value, the Committee approved replacing stock options (weighted 25% of award) with performance shares earned based on achievement of 3-year cumulative earnings before interest, tax, depreciation and amortization per share (“EBITDA Per Share”) versus target. The remaining 75% of the award value consisted of time-based restricted stock (50%) and performance shares earned through relative TSR performance versus peers (25%). The aggregate grant date fair value of the awards to our NEOs other than Mr. Schmitt ranged from $330,000 to $500,000. Given their positions and responsibilities, and to better align their compensation with market, the grant date fair value of Mr. Morris’ and Mr. Ruble’s long-term incentive grants were increased in October 2019 from $330,000 to $500,000 and $450,000 respectively. As a result, at that time, they received off-cycle long-term incentive plan awards to reflect the increased overall grant value. Mr. Schmitt did not receive a long-term incentive award in 2019 given the award he received in connection with his appointment as CEO in September 2018.
Long-term performance plan payouts. Based on total shareholder return relative to our peer companies, our 75th percentile ranking resulted in approved payouts for the January 2017 to December 2019 performance period equal to 162% of target. The grant date value of those grants was $110,000 for each of Messrs. Morris, Jewell, Ruble and Hance. Mr. Schmitt did not receive a payout as he was not employed on the date of grant.
Compensation Policies. Revised our Clawback Policy to, among other things, add material violations of Company policies, supervisory failures and failures to report misconduct as triggering events.



Compensation-Setting Process
Role of ShareholderSay-on-Pay Say on Pay Vote

The Company provides its shareholders with the opportunity to cast an annual advisory vote on executive compensation (a“say-on-pay “say on pay proposal”). At the Company’s annual meeting of shareholders held in May 2016,2019, approximately 98.0%98.61% of the votes cast on thesay-on-pay say on pay proposal were voted in favor of the proposal. The Committee believes this outcome affirms shareholders’ support of the Company’sour approach to executive compensation and generally did not change itsour approach in 20162019 based upon the results of this advisory vote. The Committee will continue to consider the outcome of the Company’ssay-on-paysay on pay votes when making future compensation decisions for the Named Executive Officers.

NEOs.

Role of the Compensation Committee

The Compensation Committee is responsible for reviewing and approving the Company’s executive compensation policies, plan designs and the compensation of our senior officers, including our Named Executive Officers.NEOs. The Committee considers various factors in making compensation determinations, including the officer’s responsibilities and performance, the effectiveness of our programs in supporting the Company’s short-term and long-term financial, operational and strategic objectives, and the Company’s overall financial performance. The Committee coordinates the full Board’s annual review of the Chief Executive Officer’s performance and considers the Board’s assessment in its compensation decisions related to the Chief Executive Officer.

21

To this end, the Committee conducts an annual review of executive officer pay levels, reviews market data updated periodically by the independent consultant,Meridian, approves changes to program designs (including post-termination arrangements) based on an assessment of competitive market practice and emerging trends, oversees the development of succession plans, and evaluates the risks associated with the Company’sour executive compensation programs.

Role of the Compensation Consultant

The Committee has selected and directly retains the services of Meridian Compensation Partners, LLC (“Meridian”).Meridian. The Committee periodically seeks input from Meridian on a range of external market factors including evolving compensation trends, appropriate peer companies to compare programs, practices and performance and market survey data.data for benchmarking pay levels. Meridian also provides general observations on the Company’s compensation programs, and policies but it does not determine or recommend the amount or form of compensation for the Named Executive Officers.NEOs. During 2016,2019, Meridian attended all fivesix Committee meetings.meetings and participated in discussions regarding the changes to base salary, the change to the long-term incentive awards and the increased LTIP values given to certain executive officers. The Committee determined that Meridian was independent during 20162019 per Nasdaq listing standards and had no conflicts of interest to disclose.

Role of Executive Officers in Compensation Decisions

At the request of the Compensation Committee, the Chief Executive Officer makes recommendations regarding base salary, annual incentive pay and long-term equity incentive awards for the other Named Executive OfficersNEOs and provides the Committee with justification for such awards. In forming his recommendations, he considers information provided by the Senior Vice President of Human ResourcesChief People Officer and assessments of individual contributions, achievement of performance objectives and other qualitative factors. While the Committee gives great weight to the recommendations of the Chief Executive Officer, it has full discretion and authority to make the final decision on the salaries, annual incentive awards and long-term equity incentive awards as to all of the Named Executive Officers.NEOs. The Chief Executive Officer does not make recommendations concerning his own compensation and is not present during deliberations and voting regarding his own compensation.

The Chief Executive Officer, Senior Vice President of Human Resources,Chief People Officer, Chief Financial Officer and Chief Legal Officer regularly attend Compensation Committee meetings at the Committee’s request. The Senior Vice President of Human ResourcesChief People Officer typically presents recommendations for program design changes and individual pay levels for executive officers (except for his own), taking into consideration individual performance of each incumbent, appropriate benchmarking information and issues that may arise from an accounting, legal and tax perspective.

Setting



Compensation Practices
Our executive compensation program is based on the following best practices:
bestpractices.jpg
Key Elements of Executive Compensation

Based on the foregoing Program

Consistent with our compensation philosophies and objectives, we have structured the Company’s executive compensation to motivate executives to achieve theour business goals set by the Company and to reward theour executives for achieving such goals.

For the fiscal year ended December 31, 2016,2019, the principal components of compensation for Named Executive Officersour NEOs were:

baseBase salary;

annualAnnual incentive compensation;

long-termLong-term equity incentive compensation; and

retirementRetirement and other benefits (available to all employees); and

perquisites and other personal benefits.

22


The Committee combines these elements, particularly base salary and the short and long-term incentives, to provide a total compensation package designed to attract highly qualified individuals and provide strong incentives to align efforts and motivate executives to deliver company performance that creates shareholder value. The total value of the compensation package is weighted more heavily towards the variable, incentiveperformance-based components.

At the beginning of 2016,2019, the Compensation Committee established a total target compensation for each Named Executive OfficerNEO comprised of base pay, annual incentives and long-term incentives (“LTI”). The Committee referred to market data prepared by its independent compensation consultant fromincluded in Aon Hewitt’s Total Compensation Measurement general industry database providing which is periodically provided by the Committee’s independent compensation consultant. When utilizing the Aon Hewitt data, the Committee focused on


pay opportunities at thesize-adjusted 50th 50th percentile of the market for executives holding similar positions. TheIn addition to the market data for similarly situated positions, the Committee considered the data as one of the factors in considering an executive’s total target compensation, but also considered other factors such aswhen establishing target total compensation opportunities, including, but not limited to the experience level of the individual, the value of the individual executive to the Company, the individual’s levelposition within the Company and existing and prior year awards for the individual and other factors.

awards.

In 2016,2019, the total target compensation set at the beginning of the year for the Named Executive OfficersNEOs is set forth in the chart below. Mr. Morris joined the Company on June 27, 2016, and his total target compensation as shown in the chart below was set at that time.

NEO

  Base Salary   Target
Annual
Incentive		   Target
Long-
Term
Incentive		   Total Target
Compensation		 

Mr. Campbell

  $750,000   $750,000   $1,500,000   $3,000,000 

Mr. Morris

   380,000    285,000    330,000    995,000 

Mr. Bell

   367,109    275,331    250,000    892,440 

Mr. Jewell

   450,000    337,500    330,000    1,117,500 

Mr. Ruble

   450,000    337,500    330,000    1,117,500 

Mr. Hance

   360,000    270,000    330,000    960,000 


targetincentives.jpg
Our compensation programs are designed to motivate strong annual performance and foster long-term operational success.performance. We set a majority of total compensation (base salary, annual incentives and long-term incentives) for the Named Executive OfficersNEOs to be “at risk”, meaning that the compensation is earned by meeting annual or long-term performance goals or is influenced by stock price. The 20162019 compensation elements with “at risk” components are approximately 65.9% ofas follows:
atrisk.jpg
(1)     As previously disclosed, Mr. Schmitt did not receive a long-term incentive award in 2019 given the 2016 target compensation opportunity for all of the Named Executive Officers, and approximately 75.0% for our Chief Executive Officer.

award he received upon his appointment to CEO in September 2018.


The compensation that an executive actually receives will differ from that executive’s target compensation for a variety of reasons. Base salary increases and annualAnnual incentive payouts are based on Company performance against financial targets and achievement of individual and business objectives. Compensation realized from long-term incentive awards is dependent upon stock price increases, stock performance, EBITDA per share performance, and relative total shareholder return versus peer companies and/or continued employment.

23

companies.

Base Salary

The objective of base salary is to reflect the base market value of the executive’s role. It is designed to reward core competence in roles that are complex and demanding. We choose to pay base salary because it is required for talent attraction and retention.

Base salaries for 20162019 for the Named Executive OfficersNEOs were determined for each executive based on his position and responsibility and by reference to the market data. The Committee also considers factors such as internal pay equity, level of experience and qualifications of the individual, scope of responsibilities and future potential, goalssuccession planning and objectives established for the executive as well as the executive’s past performance. The base salaries for the Named Executive OfficersNEOs for the fiscal


year ended December 31, 20162019 are set forth in the “Salary” column of the Summary Compensation Table on page 3637 of this Proxy Statement.

Base salary increases ranged from 3% to 5% to be consistent with Company-wide merit increases and to ensure market competitiveness. As planned, Mr. Schmitt did not receive a salary increase in 2019 based on his appointment to CEO in September 2018.

Annual Incentive Compensation

The objective of our annual cash incentive plan is to focus our executives on attaining specific short-term financial and business goals that we believe will lead to our long-term success and promote retention of the Company’sour executive talent. The annual cash incentive plan is designed to reward achievement of operating income targets and individual objectives important to the Company’s short-term and long-term success. Payments made under the annual incentive compensation program to the Named Executive Officers arewere made in cash, and are calculated toas a certain percentage of the executive’s annual base salary pay as described in more detail below.

2016Target

AnnualCashIncentivePlanOpportunity. Each executive’s annual cash incentive plan target opportunity levels (reflected as a percentage of base salary) approved by the Committee for 2016 is shown below and for ongoing executives represents no changethe NEOs in 2019, which remain unchanged from the prior year. Mr. Morris joined the Company in 2016. His target opportunity is the sameyear, were as that of Mr. Bell, his predecessor.

Annual Cash Incentive Plan Target Opportunities

Executive

Total Target Annual Cash
Incentive Plan Opportunity as
Percentage
of Base Salary

Campbell

100% 

Bell, Jewell, Morris, Ruble, Hance

75% 

follows:

targetbonusopp.jpg

The components of the Annual Incentive Plan for eachall Named Executive OfficerOfficers and their weighting with respect to the Total Cash Incentive Opportunitytotal cash incentive opportunity are reflected in the chart below.

Annual Cash Incentive Plan

Executive

Components of Plan

Weighting of
Total Cash
Incentive
Opportunity

Campbell, Bell,

Morris and Hance

(1) Corporate Performance

(2) Individual Performance


80

20

% 

% 

Ruble

(1) Business Unit (Expedited LTL) Performance

(2) Corporate Performance

(3) Individual Performance


50

30

20

% 

% 

% 

Jewell

(1) Business Unit (Truckload Premium and Intermodal) Performance

(2) Corporate Performance

(3) Individual Performance


50

30

20

% 

% 

% 

24

annualcashinc.jpg
(1)Mr. Schmitt commenced employment with the Company on September 1, 2018, well after the beginning of the year individual goal-setting process concluded. As such, the Committee determined to make 100% of his pro-rated annual incentive for 2018 dependent 100% upon Corporate Performance. In 2019, the Committee adjusted the weightings to include Individual Performance in accordance with the Committee’s philosophy to reward individual contributions against specific andBusiness-Unit meaningful objectives and consistent with historical practice and the weightings of the other executives.

(2)Mr. Jewell was appointed Chief Commercial Officer in June 2019. At that time, Mr. Ruble took responsibility for our Intermodal segment. To reflect their new responsibilities, the weightings for Messrs. Ruble and Jewell were adjusted for the second half of 2019. The chart above reflects these adjusted weightings. For the first half of the year, Mr. Ruble’s weightings were 30% Corporate Performance, 20% Individual Performance and 50% Business Unit Performance (30% Expedited LTL, 10% Truckload and 10% Pool). Mr. Jewell’s weightings were 30% Corporate Performance, 20% Individual Performance and 50% Business Unit Performance (all of which relates to the Intermodal segment).

Payout under each component can range from 0% of target (when threshold performance is not achieved) to 200% of target (when maximum or performance above target is achieved).
Corporate Performance and Business-Segment Performance OperatingIncomeGoals. The Committee established corporate and business-unitbusiness-segment operating income goals for 20162019 and corresponding incentive payments for achievement of such goals. Goals arewere set to represent threefive incremental performance levels: threshold,downside, low, target,


high and maximum.stretch. The target level for operating income is set at amounts that generally reflectreflects our internal business plan at the time the targets aretarget is established, subject to adjustment to take into account known headwinds or tailwinds and other economic conditions. ThresholdDownside, low, high and maximumstretch levels are designed to provide a smaller award for lower levels of acceptable performance (threshold)(downside and low) or reward exceptional levels of performance (maximum)(high and stretch). Payout for performance between points is typically interpolated on a straight-line basis. Downside targets were established in 2019 to provide a minimal level of payout if there is an unforeseen decline in performance. The downside target amounts were moderately below 2018 actual performance. The Committee retains discretion as to the amount of the ultimate short-term incentive to be paid.

For the 2016 Corporate Performance Component, the operating income target was $120.0 million, which represented a 13.2% increase over the actual corporate adjusted operating income performance for 2015. For the Business-Unit Performance Component, the operating income targets were $89.1 million for Expedited LTL and $13.6 million for Intermodal Services, which represented 12.5% and 14.3% increases, respectively, over the actual business unit operating income results from the prior year. For the Truckload Premium Services, the operating income target was $13.2 million, which was 0.8% decrease over the applicable results from the prior year. Truckload Premium Services plan decreased compared to 2015 due to restructuring efforts associated with the TQI operations. In 2016, for purposes of determining the achievement of

The 2019 operating income goals under the annual cash incentive plan, the Committee determined to exclude from operatingand corresponding performance levels are noted below.
operatingincomegoals.jpg
operatingincomegoals2.jpg

one-timenon-cashIndividual Objectives. charge of $42.4 million primarily resulting from intangible asset impairments related to the Company’s TQI acquisition.

IndividualObjectives.Individual personal objectives specific to each executive officer position were set at the start of the fiscal year. At the end of the fiscal year, the Chief Executive Officer used his judgment to evaluateevaluated the performance of the other Named Executive OfficersNEOs against those personal objectives, taking into account the extent to which the goals were met;met, unforeseen financial, operational and strategic issues of the Company;Company, and any other information deemed relevant. The Compensation Committee reviewed and approved this performance evaluation and evaluated the performance of the Chief Executive Officer in a similar manner with input from the full Board.

The 2016 individual objectives payout opportunities were as shown in Based on the chart below. From zero percent (0%) to the maximum award amount described in the chart below,results of this review, the Committee had discretion as todetermined the exact amount of awards, if any, made in connection with an executive’s attainment of the executive’s individual objectives.

Individual Objectives Component of Annual Cash  Incentive Plan

Possible Payout as Percentage of
Total Target Annual Incentive
Opportunity

Threshold

0% 

Target

20% 

Maximum

40% 

25

2016

2019 AnnualIncentivePayout.The Committee met in February 20172020 to determine whether the Company’s 20162019 performance merited payment to the Named Executive OfficersNEOs under the annual cash incentive plan, and, if so, to determine the amount of such incentive awards.

•Corporate Performance Component: Adjusted income from operations was $102.4 million, which resulted in a payout of 50% of the total target Corporate Performance annual incentive opportunity.

•Business-Unit Performance Component. Expedited LTL’s adjusted income from operations was $83.5 million, which resulted in a payout of 75% of the target Business-Unit Performance incentive opportunity for Mr. Ruble. Neither Truckload Services nor Intermodal Services achieved the threshold level of performance, and therefore Mr. Jewell received no payout under the Business-Unit Performance Component of the program.

•Individual Performance:

Corporate Performance Component: Adjusted income from operations was $119,562 million, which resulted in a payout of 47.6% of the total target Corporate Performance annual incentive opportunity.
Business-Segment Performance Component: Income from operations for Expedited LTL, Truckload Premium Services and Pool Distribution was $97,705 million, $3,359 million and $7,275 million, respectively, which resulted in prorated payouts of 55.9%, 0% and 39.9% of the target Business-Segment Performance incentive opportunity for Expedited LTL, Truckload Premium Services and Pool Distribution, respectively, for Mr. Ruble. Intermodal’s income from operations was $23,679 million, which resulted in a prorated payout of 79.9% of the target Business-Segment Performance incentive opportunity for Mr. Jewell.
Individual Performance: The Committee also considered performance against the individual objectives set for the Named Executive Officers.NEOs. In 2016,2019, those individual objectives encompassed:

contributionsContributions to meeting established corporate and departmental goals;

contributionsContributions to the Company’s acquisition activities;succession and talent development initiatives;

continuousContinuous improvement of business and functional operations;

managing resources within established departmental budgets; and

effectiveness and

Personal development in areas of leadership, talent development, planning and teamwork.


After a performance appraisal of each executive officer and a review of their achievement of the personal goals which had been set for them, Mr. CampbellSchmitt recommended to the Committee an achievement of 100%105%, 103%, 104% and 102% of target for each Named Executive Officer’s personal individual objectives,Messrs. Ruble, Morris, Jewell and Hance, respectively, which they approved. The Compensation Committee evaluated the performance of the Chief Executive OfficerMr. Schmitt in a similar manner, and basedmanner. In addition to the factors mentioned above, Mr. Schmitt’s individual performance objectives also encompassed long-term strategic planning initiatives. Based on its review, the Committee determined that Mr. Campbell alsoSchmitt achieved 105% his personal individual objectives for 20162019 at target levels.
The actual awards made to each Named Executive OfficerNEO under the Operating Income and Individual Objectives Component of the annual cash incentive plan are shown in the chart below.

Executive

  Corporate
Performance
Component		   Individual
Objectives
Component		   Business-Unit
Performance
Component		   Total Payout
Under 2016
Annual Cash
Incentive Plan		 

Mr. Campbell

  $300,000   $150,000    N/A   $450,000 

Mr. Morris

   114,000    57,000    N/A    171,000 

Mr. Bell

   110,133    55,066    N/A    165,199 

Mr. Jewell

   50,625    67,500    0    118,125 

Mr. Ruble

   50,625    67,500    126,153    244,278 

Mr. Hance

   108,000    54,000    N/A    162,000 

26

actualawards.jpg

Long-Term Equity Incentive Awards

The objective of providing long-term incentives (LTI) is to attract and retain critical leadership, align executive interests to those of shareholders, enhance long-term thinking in general and focus the Named Executive Officersexecutives on metrics that lead to increased shareholder value over the long term, enhance long-term thinking in general and retain executives.term. Our long-term incentives are specifically designed to reward for stock price increase, stock performanceappreciation and outperformance of shareholder return relative to industry peer companies and continued employment.

Atcompanies.

Recognizing that 2018 was Mr. Schmitt’s first year with the beginning of 2016,Company, the Committee established target values for each Named Executive Officer, except for Mr. Morris who joinedstructured his initial pay package to give him a significant stake in the Company in June 2016, for the total LTI component and made grants consisting of three types of awards: stock options, restricted stock and performance shares. There were no changes to the total long-term incentive target value for any of the Named Executive Officers, other than Mr. Bell, whose total long-term incentive target value was reduced by $80,000. The Committee made grants to Messrs. Campbell, Bell, Jewell, Ruble and Hance consisting ofone-third in value each of stock options, restricted stock and performance shares. The Committee granted an LTI award consisting of only restricted shares to Mr. Morrisimmediately upon his appointment as CEO. Accordingly, upon the commencement of his employment on September 1, 2018, Mr. Schmitt was awarded an aggregate target long-term incentive award valued at $3,291,000 split approximately evenly between restricted shares and stock options, which will vest equally on each of the first, second and third anniversaries of the grant date. This at-risk award provided Mr. Schmitt with an initial inducement and immediately aligned Mr. Schmitt’s performance-incentives with those of our broader leadership team and shareholders. This award was intended to serve as Mr. Schmitt’s long-term incentive award for both 2018 and 2019. As such, Mr. Schmitt received no additional long-term incentive award in 2019.
The Committee established 2019 target values for each other NEO for the total LTI component. The target LTI values for Messrs. Jewell and Hance remained unchanged at $330,000. Initially, the Board set Messrs. Ruble and Morris’ LTI value at $330,000 consistent with prior years. Based on market data and Mr. Ruble’s expanded responsibilities, in October 2019, the Committee increased the target LTI values for Messrs. Ruble and Morris to $450,000 and $500,000, respectively.
Changes to LTI Program for 2019. In February 2019, management proposed, and, after discussion with Meridian, the Committee approved, the following change to the long-term incentive plan design for awards provided to the NEOs (other than Mr. Schmitt who did not receive a grant) in 2019:
Replace stock options (weighted 25% of award) with performance shares earned based on achievement of 3-year cumulative earnings before interest, tax, depreciation and amortization per share (“EBITDA Per Share”) versus target.
Continue to deliver remaining 75% through grants of time-based restricted stock (50%) and performance shares earned based on relative TSR performance versus peers (25%).


The Committee believes this is an appropriate change in that it:
Continues to promote retention and stock ownership;
Reduces emphasis on stock options (which have been declining in market prevalence and weight) and which are considered by some shareholders not to be “performance-based”;
Increases weight of performance shares to 50% of total target award value; and
Focuses executives on an internal financial measure that would capture growth in EBIT while providing insight into cash flow, all of which we believe further align our executives’ interests with the Companyinterests of our shareholders.

Accordingly, in June 2016.

The2019, the Committee approved the following target long-term incentive awards for the Named Executive OfficersNEOs:

 ltiforneo.jpg
The number of shares of restricted stock and performance shares issued to the NEOs under the 2016 Omnibus Incentive Compensation Plan (the “Omnibus Plan”) for 2016:

Executive

  2016 Stock
Option
Grant		   2016
Restricted
Stock Grant		   2016 Target
Performance
Share Grant		   2016 Total
Long-Term
Incentive
Award		   2015 Total
Long-Term
Incentive
Award		 

Mr. Campbell

  $500,000   $500,000   $500,000   $1,500,000   $1,500,000 

Mr. Morris

   —      330,000    —      330,000    N/A 

Mr. Bell

   83,333    83,333    83,333    250,000    330,000 

Mr. Jewell

   110,000    110,000    110,000    330,000    330,000 

Mr. Ruble

   110,000    110,000    110,000    330,000    330,000 

Mr. Hance

   110,000    110,000    110,000    330,000    330,000 

27

the fiscal year ended December 31, 2019 are set forth in the Grants of Plan-Based Awards for Fiscal 2019 Table on page 39 of this Proxy Statement.

Equity-basedawards. awards. The value to the executive of each of theall three components comprising long-term equity compensation in 2016 (stock options, restricted2019 (restricted stock, TSR performance shares and EBITDA per share performance shares) is impacted by the performance of the Company’s stock.

A stock option provides value to the executive only if share price increases.

Restricted stock becomes more valuable to the executive if the Company’sour stock price increases, and the executive shares in the downside risk of a decline in the Company’sour stock price.

The number of performance shares earned, if any, will depend on how the Company’s stock performs againstrelative to transportation industry peers.peers and against established EBITDA per share targets.

As it is possible that there will be no payout under the performance shares, or stock options, these awards are completely“at-risk” “at-risk” compensation. This emphasis onat-risk compensation in the LTI awards accomplishes the Company’sour goal of creating apay-for-performance culture at the executive level, while striking the appropriate balance between risk, retention and reward. Each element of the LTI is discussed in more detail below. See
Change-in-ControlRestricted StockTreatmentof2016LongTermEquityAwards for a discussion of the treatment of 2016 long-term incentives upon a change in control.

StockOptions. A stock option is the right to purchase the Company’s common stock at a fixed price for a defined period of time. In 2016, grant sizes of stock options for the Named Executive Officers were calculated generally by multiplying the target LTI economic value by the weighting assigned to the options component and dividing it by the value of a single option determined under the Black-Scholes methodology and based on assumptions used for recognizing expense in our financial statements contained in our Annual Report in accordance with generally accepted accounting principles (“GAAP”). For the 2016 option grant, the grant date fair value was $11.73.

The exercise price for options was equal to the fair market value of the Company’s common stock on the date the option was granted, $43.67. The options vest evenly over a three-year period. Consistent with option grants to the Chief Executive Officer over the past four years, options granted to Mr. Campbell in 2016 were subject to a financial performance standard whereby vesting was contingent upon the Company’s achievement ofpre-established operating income goals within a three-year period. All of the options granted to the Named Executive Officers will expire if not exercised within seven years of the grant date. To the extent not earlier vested, these options will vest upon the death or disability of the recipient.

RestrictedStock. A share of restricted stock is a share of the Company’s common stock that is subject to vesting requirements based on continued employment. Restricted stock grant sizes are calculated generally by multiplying the target LTI economic value by the weighting assigned to the restricted stock component and dividing it by the value of a single share of common stock determined using the estimated grant date fair value. The estimated grant date fair value of the restricted shares awarded to the Named Executive OfficersNEOs in February 20162019 was $43.67. The estimated grant day fair value$59.07, the closing price of the restricted shares awarded to Mr. Morris uponCompany’s common stock on the commencementdate of his employment with the Company in June 2016 was $43.15.

grant.

Shares granted under restricted stock awards are restricted from sale or transfer until vesting occurs, and restrictions lapse in three equal installments beginning one year after the date of grant. Dividends are paid in cash on a current basis throughout the vesting period.

To the extent not earlier vested, these options will vest upon the death



or disability of the recipient, as well as upon involuntary termination of employment in connection with or within 24 months after the change in control.
PerformanceShares. Shares. A performance share is the right to receive a share of Company common stock based upon the achievement of certain performance criteria. PerformanceTSR performance share grant sizes awarded in 2019 were calculated by multiplying the target LTI economic value by the weighting assigned to the TSR performance share component and dividing it by $63.12, the value of a single performance share on the date of grant determined using a Monte Carlo valuation model, $48.73.

28

model. EBITDA performance share grant sizes awarded in 2019 were calculated by multiplying the target LTI economic value by the weighting assigned to the EBITDA performance share component and dividing it by $59.07, the closing price of the Company’s common stock on the date of grant.

TSR Performance Shares. TSR performance shares are earned on the basis of our Total Shareholder Return (“TSR”) measured over a three-year period, relative to the TSR of a peer group of transportation companies. For performance share awards made prior toin 2016 and including 2015,after, the following 12 companies were included in the TSR peer group: C.H. Robinson Worldwide, Inc.;Con-way, Inc.; Expeditors International of Washington, Inc.; FedEx Corporation; Hub Group, Inc.; J.B. Hunt Transport Services, Inc.; Knight Transportation, Inc.; Landstar System, Inc.; Old Dominion Freight Line, Inc.; United Parcel Service, Inc.; UTi Worldwide, Inc.; and Werner Enterprises, Inc. In 2015, the Committee adjusted the peer group for performance share awards made in 2016 by removing UTi Worldwide, Inc. andCon-Way, Inc., both of which were acquired in 2015, and adding XPO Logistics, Inc. and Roadrunner Transportation Systems, Inc.

TSR reflects price appreciation and reinvestment of dividends.

Share price appreciation is measured as the difference between beginning market price and ending market price.
C.H. Robinson Worldwide, Inc.Landstar System, Inc.
Expeditors International of Washington, Inc.Old Dominion Freight Line, Inc.
FedEx CorporationRoadrunner Transportation Systems, Inc.
Hub Group, Inc.United Parcel Service, Inc.
J.B. Hunt Transport Services, Inc.Werner Enterprises, Inc.
Knight Transportation, Inc.XPO Logistics, Inc.

Beginning market price equals the average closing price on the 30 trading days immediately preceding and including the first day of the performance period.

Ending market price equals the average closing price on the last 30 trading days of the performance period.

The actual number of performance shares earned is based on the percentile of our TSR among the TSRs of the comparator group companies described above during the three-year performance period. Calculations are conducted at the end of each of the last four quarters of the performance period using the payout/performance scale below, and then averaged to determine the actual payout. Payouts can range from 0 to 200% of the target number of performance shares awarded.

Payout for performance between points is calculated using straight-line interpolation.
performancepayout.jpg
TSR is calculated based on the change in share price plus reinvestment of dividends, with beginning and ending share price calculated as follows:
Beginning market price equals the closing price on the last trading day immediately preceding the first day of the performance period.
Ending market price equals the last trading day of each measurement period (i.e., the final four calendar quarters).
The performance shares pay out in shares of our common stock shortly after the close of the three-year performance period, in a range of 0 percent to 200 percent of the number of performance shares awarded. The chart set forth below determined the percent of a target award to be paid for grants made in 2016. Payout for performance between points is calculated using straight-line interpolation.

Performance Level

Payout
(as a % of Target)

90th percentile or higher


200
% 

70th percentile

150% 

50thpercentile

100% 

25th percentile

50% 

Below 25th percentile

0% 

period. Dividends are not paid on unvested TSR performance shares. Performanceshares but rather are paid if and when the



underlying performance shares have been earned and vested. TSR performance shares vest upon the death or disability of the recipient at target, as well as upon involuntary termination of employment in connection with or within 24 months after the change in control as such term is defined in the Amended and Restated Stock Incentive Plan (the “Stock Incentive Plan”).

Awards made to the Named Executive Officers under the Stock Incentive Plan and the 2016 Omnibus Incentive Compensation Plan (the “Omnibus Plan”) for the fiscal year ended December 31, 2016 are set forth in the Grants of Plan-Based Awards for Fiscal 2016 Table on page 38 of this Proxy Statement.

2014Plan.

2017 PerformanceShares. Based on our TSR of 48.5% for the February 2014January 2017 to February 2017December 2019 performance period, we ranked at the 20th75th percentile of our transportation industry peer group. As a result, nothese awards paid out at 162% of target.
EBITDA Performance Shares. EBITDA performance shares wereare earned on the basis of our EBITDA per Share measured over a three-year period. EBITDA per Share is defined as earnings before interest, tax, depreciation and amortization per share (“EBITDA per Share”). For purposes of determining the achievement of EBITDA per Share, the Committee may determine to exclude from earnings non-recurring, non-operational or other items that the Committee believes should be excluded.
The actual number of EBITDA performance shares earned is based on achievement of EBITDA per Share over a three-year period against pre-set cumulative EBITDA per share targets. The performance shares provide an opportunity for shares to be earned at the end of a three-year performance period if pre-established financial goals are met. These goals have been tailored to be difficult to achieve, so as to incentivize our NEOs to maximize their performance. We believe that period.

29

Change-in-Control Treatmentthe performance targets underlying our long-term equity incentive program are rigorous, and we have not disclosed current targets because their disclosure would allow our competitors to determine the EBITDA and pricing related to key programs, which would be competitively harmful to us. The EBITDA performance shares pay out in shares of 2016 Long Term Equity Awards

Beginning with long-term incentive grants made in 2016, vestingour common stock shortly after the close of such awards upon a change in control is double-trigger (i.e., not accelerated unless the awardsthree-year performance period. Payouts can range from 0 to 200% of the target number of performance shares awarded based on performance relative to the targets.

Dividends are not assumedpaid on unvested EBITDA performance shares but rather are paid if and when the underlying performance shares have been earned and vested. EBITDA performance shares vest upon the death or converted bydisability of the acquirer or in the event there is anrecipient at target, as well as upon involuntary termination of employment in connection with or within 24 months after the change in control).

Uponcontrol as suchchange-in-control-related vesting event 1) stock options will become fully vested and exercisable and may be exercised within 90 days thereafter but not beyond their expiration date. If the stock options are cancelled term is defined in the change in control transaction, they will become exercisable in full immediately before such cancellation; 2) restricted shares will become fully vested and transferable; 3) the target number of performance shares will vest or, if greater, the number of performance shares that would have become vested on the vesting date based on the Company’s TSR ranking calculated through the executive’s last day of service. Similar to the performance share awards granted in 2015, the target number of performance shares under the 2016 awards is set at half of the maximum payout opportunity.

Omnibus Plan.

Retirement and Other Benefits

Our Named Executive OfficersNEOs received the same retirement and other benefits the same as other employees at the Company. We choose to pay these benefits to meet the objective of having a competitive retirement and benefit package in the marketplace. Retirement benefits reward employees for saving for their retirement and for continued employment. Welfare benefits such as medical and life insurance reward continued employment.

All full-time Company employees, including the Named Executive Officers,NEOs, are entitled to participate in the Company’s 401(k) retirement savings plan. Under the Company’s 401(k) retirement savingsthat plan, for each pay period, the Company provides a $0.25 matching contribution for every dollar an employee elects to defer into the 401(k) plan. However, this $0.25 matching contribution isplan, limited to elective deferrals up to 6% of the employee’s compensation for the pay period. The Company’s matching contribution is subject to the rules and regulations on maximum contributions by individuals under such a plan. Matching contributions to the Named Executive OfficersNEOs for the fiscal year ended December 31, 20162019 are reflected in the “401(k) Match” column of the All Other Compensation Table on page 3738 of this Proxy Statement.

Additionally, all full-time employees, of the Company, including the Named Executive Officers,NEOs, are eligible to participate in the Company’s 2005 Employee Stock Purchase Plan (the “ESPP”) upon enrolling in the ESPP during one of the established enrollment periods. Under the terms of the ESPP, eligible employees of the Company can purchase shares of the Company’s common stock through payroll deduction and lump sum contributions at a discounted price. The purchase price for such shares of common stock for each option period, as described in the ESPP, will be the lower of: (a) 90% of the closing market price on the first trading day of an option period (there are two option periods each year—Januaryyear-January 1 to June 30 and July 1 to December 31) or; (b) 90% of the closing market price on the last trading day of the option period. Under the ESPP, no Company employee is permitted to purchase more than 2,000 shares of the Company’s common stock per option period or shares of common


stock having a market value of more than $25,000 per calendar year, as calculated under the ESPP.

Mr. Schmitt does not participate in the ESPP.

The Named Executive OfficersNEOs are also eligible to participate in the Company’s health, dental, disability and other insurance plans on the same terms and at the same cost as such plans are available to all of the Company’s full-time employees. The Company does not have or provide anya supplemental executive retirement plan or similar plan that provides for specified retirement payments or benefits. Moreover, the Company does not have or provide any defined contribution or other planone that provides for the deferral of compensation on a basis that is nottax-qualified.

30

Perquisites

The Company provides its Named Executive Officers with perquisites and other personal benefits that the Company and the Committee believe are reasonable and consistent with its overall compensation. We choose to pay them to meet the objective of creating a competitive advantage for attracting and retaining superior employees for key positions. The Committee periodically reviews the levels of perquisites and other personal benefits provided to the Named Executive Officers. The Named Executive Officers are provided a monthly car allowance and reimbursement of certain commuting expenses. The perquisites provided to our Named Executive Officers, in the aggregate, comprise less than 1.0% of their total compensation. The amounts of such benefits received by each Named Executive Officer for the fiscal year ended December 31, 2016 are set forth in the “Car Allowance & Commuting Expenses” column of the All Other Compensation Table on page 37 of this Proxy Statement.

Severance Arrangements

The Company maintains an employment agreement with

Our NEOs, including Mr. Campbell, which was put in place to secure his services and provide for certain benefits upon termination of employment, and also to protect the Company’s interests by imposing confidentiality, noncompetition, non-solicitation and other restrictive covenants. Under Mr. Campbell’s Employment Agreement, described in detail below, if the Company were to terminate Mr. Campbell without “just cause,” then he would be entitled to receive (i) his base salary for the longer of one year from the date of termination or the remainder of the then-pending term of the Employment Agreement but not to exceed two years; (ii) any unpaid bonus amounts previously earned; and (iii) continued insurance coverage for one year from the date of such termination. In the event of a change in control, Mr. Campbell may elect to resign and receive (i) his base salary for one year following the date of the change of control; and (ii) a cash bonus equal to the prior year’syear-end cash bonus, plus any unpaid bonus amounts previously earned. The payments due to Mr. Campbell in the event he is terminated without “just cause” or following a change in control are set forth in the “Termination without Cause and Change of Control” columns of the 2016 Potential Payments upon Termination, Change of Control, Death and Disability Table on page 44 of this Proxy Statement.

Our other executive officers do not have employment contracts, butSchmitt, are covered by an executive severance and change in control plan (the “Severance Plan”), which became effective January 1, 2013. All Named Executive Officers (other than the Chief Executive Officer whose severance is governed by the terms of his employment agreement), along with other senior officers of the Company, are participants in the Severance Plan.2013, and was amended and restated May 24, 2018. The objectives of the Severance Plan are to enhance the attraction and retention of executive talent during corporate upheaval, enable management to evaluate and support potential transactions that might be beneficial to shareholders even though the result would be a change in control of the Company, and obtain important corporate protections upon terminations of employment. The plan is designed to reward executives for remaining employed when their prospects for continued employment following a change in control or other corporate upheaval may be uncertain. We chose to adopt the plan to protect shareholder value in such events by increasing the possibility of retaining an intact management team.

In connection with his retirement from the Company in March 2017, Mr. Bell entered into a Retirement and Release Agreement with the Company (the “Retirement Agreement”). Under the Retirement Agreement, Mr. Bell received the following benefits: (i) a lump sum severance payment in an amount equal to one year of his annualized base salary; (ii) apro-rata target annual incentive for 2017 in the amount of $68,830; (iii) a lump sum healthcare assistance payment in an amount of $16,300; and (iv) certain

31

outplacement services not to exceed $20,000 in value, which benefits are consistent with the benefits provided by the Severance Plan. Upon his retirement, Mr. Bell’s rights and interests in any equity awards granted to him by the Company will be controlled by the terms of the applicable equity plan and award agreement governing said awards. Accordingly, any stock options that were exercisable by him on the date of his retirement were exerciseable for a period of 90 days from the retirement date, and any options not exercised during the afore-described90-day period will be canceled and forfeited. Any shares of restricted stock awarded to Mr. Bell that were not vested on the date of his retirement were immediately forfeited by him and transferred to the Company for no consideration. Mr. Bell’s rights and interests in any unvested performance shares were immediately forfeited on the date of his retirement and said awards were canceled. A condition to Mr. Bell receiving any of the benefits provided under the Retirement Agreement was his execution of a restrictive covenants agreement that includesnon-competition andnon-solicitation provisions with respect to the Company’s employees and customers for a specified period following his retirement. In addition, his severance benefits payable under the Retirement Agreement were subject to his execution of a general release of claims against the Company and certain affiliated persons and entities.

The severance benefits available to our Named Executive OfficersNEOs under the Severance Plan are described in more detail under the Section entitled “2016 Potential“Potential Payments upon Termination, Change of Control, Death or Disability” on pages43-46 of this Proxy Statement and in the table set forth on pagepages 45-46 of that Section.

Tax and Accounting Implications

The Committee and management consider the accounting and tax effects of various compensation elements when designing our annual incentive and equity compensation plans and making other compensation decisions. Although the Committee designs the Company’s plans and programs to betax-efficient and to minimize compensation expense, these considerations are secondary to meeting the overall objectives of the executive compensation program.

DeductibilityofExecutiveCompensation. Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), generally disallows a federal income tax deduction to public corporations

Accounting for compensation greater than $1 million paid for any fiscal year to the corporation’s chief executive officer and to the three most highly compensated executive officers other than the chief executive officer or chief financial officer. However, certain forms of performance-based compensation are excluded from the $1 million deduction limit if specific requirements are met. It is the policy of the Committee to periodically evaluate the qualification of compensation for exclusion from the $1 million deduction limit under Section 162(m) of the Code, while maintaining flexibility to take actions with respect to compensation that it deems to be in the interest of the Company and its shareholders which may not qualify for tax deductibility.

AccountingforExecutiveCompensation. We account for stock-based compensation in accordance with GAAP. Consequently, stock-based compensation cost is measured at the grant date based on the fair value of the award in accordance with FASB ASC Topic 718. We generally recognize stock-based compensation expense ratably over the vesting period of each award except as required otherwise by FASB ASC Topic 718.

Other Compensation and Governance Policies

Risk Management

Our incentive program rewards reasonable risk-taking, accomplished through both program design and Committee processes.

32

Program design features for Named Executive OfficersNEOs that mitigate risk include the following:

Balanced mix of pay including substantial base salary (fixed compensation) and a balance of annual (cash) and long-term (equity) incentives;

Capped short-term incentives;

Short-term incentive goals tied to financial goals of corporate-level strategic plan;

Annual equity-based incentive grants without backdating or repricing;

Stock ownership guidelines applicable to senior executive officers, as described below;



Prohibition on hedging and pledging Company stock, as described below; and

A compensation recoupment or “clawback” policy, as described below.

Committee processes mitigating risk include:

Overall administration of executive plans by the Committee;

Reasonable short-term incentive goals;

Financial performance objectives based upon budget objectives that are reviewed and approved by the Committee and the Board;

Avoidance of steep payout cliffs;

Ongoing and active discussion of the Committee with management regarding process on short-term and long-term goals; and

Committee authority to pay less than the maximum short-term incentive amount after assessing the overall contribution and performance of the executive officers.

Other incentive programs at the Company either have similar characteristics or are small in amount.

Stock Ownership Guidelines

The Company has adopted executive stock ownership and retention guidelines (the “Ownership Guidelines”). These Ownership Guidelines are applicable to the Company’s executive officers, including the Named Executive Officers, and other executives holding a title of senior vice president or above. The Company’sNEOs. Our Ownership Guidelines are designed to increase executives’ equity stakes in the Company and to align executives’ interests more closely with those of shareholders. The Ownership Guidelines require covered executives to own, and hold during his or her tenure with the Company, shares of the Company’s common stock sufficient in number to satisfy the relevant amount specified below as a multiple of the executive’s annual base salary:

Position

Value of Common Stock to be Owned

Chief Executive Officer

3 times base salary

Executive Vice Presidents and Senior Vice Presidents

2 times base salary

Chief Accounting Officer

1 times base salary

salary. Effective February 6, 2018, these Ownership Guidelines were amended to increase the ownership multiples applicable to the NEOs and other executive officers as reflected in the chart below:  

ownershipmultiples.jpg
Until the executive achieves the applicable ownership level, he or she is required to retain 50% of the net number of shares of common stock acquired through Company-provided stock-based awards, the vesting of restricted stock awards, the delivery of shares in settlement of stock units or performance share awards, or the delivery of shares to the executive through any other incentive compensation arrangement of the

33

Company.arrangement. This retention requirement applies only to stock-based awards that are granted on or after January 1, 2013. No retention requirement applies under the Ownership Guidelines to shares acquired in excess of the requisite ownership level. Unvested restricted stock, unvested stock units, sharesShares underlying unexercised stock options and unvested or unearned performance share awards or performance units do not count towards the stock ownership guidelines.

The Ownership Guidelines allow unvested restricted stock to count towards the stock ownership guidelines.

Prohibition Against Hedging and Pledging

The Company’s Insider Trading Policy prohibits executive officers from engaging in any form of hedging transaction. In addition, the policy prohibits executive officers from holding Company securities in margin accounts


and from pledging Company securities as collateral for loans. The Company believes that these policies further align our executives’ interests with those of our shareholders.

Policy on Recoupment of Executive Compensation

The Company has adopted a discretionary incentive compensation clawback policy (the “Recoupment Policy”) that applies to its executive officers, including the Named Executive Officers,NEOs, and certain other specified employees. In February 2019, the Company approved amendments to the Recoupment Policy that expanded its reach. This amended policy allows the Company to seek reimbursement with respect to incentive compensation paid or awarded to executive officers ifin any of the circumstances listed below.
A determination is made that the executive officer engaged in fraudulentfraud, theft, misappropriation or illegal conduct to the material detriment of the Company, or if the executive is terminated for fraudulent or illegal conduct that materially harms the business or reputation of the Company. Additionally, the Company can seek reimbursement under the Recoupment Policy if aembezzlement.
A determination is made that the Company is required to file an accounting restatement with the SEC that resulted from either the intentional misconduct of the executive officer or, regardless of the existence of intentional misconduct, results in a material negative revision of a financial or operating measure that was used to determine incentive compensation.
Any other material negative revision of a financial or operating measure within 36 months after such financial or operating measure served as the basis on which incentive compensation was awarded or paid to an executive officer.
An error or calculation of an executive officer’s incentive compensation payout within 6 months after such erroneous amount is paid.
Material violations of the Company’s Business Code of Conduct and Ethics that could reasonably lead to a material financial or reputational harm to the Company.
The executive officer is terminated from employment by the Company due to a felony conviction or the failure to contest prosecution for a felony or, in the Committee’s determination, for such executive officer’s gross negligence, willful misconduct or dishonesty, any of which could reasonably lead to material financial or reputational harm to the Company
The executive officer’s failure to report or reckless failure to supervise his or her direct reports which in the Committee’s determination, resulted in such executive officer’s failure to detect, in each case, gross negligence, willful misconduct or dishonesty on the part of others, any of which could reasonably lead to material financial or reputational harm to the Company.

The Recoupment Policy allows the Company to recover incentive compensation awarded to the affected executive officers, including, but not limited to, bonuses, annual, periodic or long-term cash incentive compensation, stock-based awards and the Company stock acquired thereunder, and sale proceeds realized from the sale of Company stock acquired through stock-based awards. All actions taken and decisions made relating to the Recoupment Policy are in the Committee’s sole and absolute discretion. The Company expects to update the Recoupment Policy when the regulations mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, as amended, are implemented by the SEC.

Key Provisions of Stock Incentive Plan and Omnibus Plan

The Company’s Amended and Restated Stock Incentive Plan (the “Stock Incentive Plan”) and Omnibus Plan incorporate certain terms and procedures that reflect the current compensation philosophy of the Company’s Compensation Committee. Specifically, both plans prohibit there-pricing orcash-out of underwater stock options and SARs without prior shareholder approval. They also provide that the taking of certain permitted actions affecting outstanding awards in the event of a change in control of the Company will in all cases be conditioned upon the consummation of the transaction giving rise to the change in control and will not be taken with respect to any awards that are subject to the provisions of Section 409A of the Internal Revenue Code (“Section 409A”) if the action would result in a violation of Section 409A. Finally, awards granted under the Stock Incentive Plan and Omnibus Plan are made subject to the Company’s Recoupment Policy on incentive compensation.



Compensation Committee Report on Executive Compensation

The information contained in this report shall not be deemed to be “soliciting material” or “filed” with the SEC or subject to the liabilities of Section 18 of the Exchange Act, except to the extent that Forward Air Corporation specifically incorporates it by reference into a document filed under the Securities Act of 1933,

34

as amended, or the Exchange Act. The Compensation Committee of the Company has reviewed and discussed the Compensation Discussion and Analysis required by Item 402(b) of RegulationS-K with management and, based on such review and discussions, the Compensation Committee recommended to the Board that the Compensation Discussion and Analysis be included in this Proxy Statement and incorporated by reference into the Form10-K filed with the SEC.


Submitted by:
R. Craig Carlock, Chairman
C. Robert Campbell
C. John Langley Chairman
Tracy A. LeinbachW. Gilbert West
Ronald W. Allen
Douglas M. Madden
Larry D. Leinweber
The Compensation Committee of the Board of Directors

35






EXECUTIVE COMPENSATION

Summary Compensation Table

The following table shows the compensation earned in 2016, 20152019, 2018 and 20142017 by the Named Executive Officers.

Name &

Principal Position

  Year   Salary
($)		   Stock
Award(s)
($) (1)		   Option
Award(s)
($) (2)		   Payments
Under
Non-Equity
Incentive
Plans
($) (3)		   All Other
Compensation
($) (4)		   Total 

Bruce A. Campbell

   
2016
 
  $
750,000
 
  $
1,000,000
 
  $
500,000
 
  $
450,000
 
  $
14,229
 
  $
2,714,229
 

Chairman, President and Chief Executive Officer

   

2015

2014

 

 

   

620,999

629,999

 

 

   

1,166,580

666,588

 

 

   

333,332

332,858

 

 

   

378,836

283,150

 

 

   

21,350

23,867

 

 

   

2,521,097

1,936,462

 

 

Michael J. Morris

   
2016
 
   
197,308
 
   
330,000
 
   
—  
 
   
171,000
 
   
55,234
 
   
753,542
 

Senior Vice President and Chief Financial Officer

   

2015

2014

 

 

   

—  

—  

 

 

   

—  

—  

 

 

   

—  

—  

 

 

   

—  

—  

 

 

   

—  

—  

 

 

   

—  

—  

 

 

Matthew J. Jewell

   
2016
 
   
450,000
 
   
220,000
 
   
110,000
 
   
118,125
 
   
6,723
 
   
904,848
 

President - Logistics Services

   

2015

2014

 

 

   

413,240

389,211

 

 

   

219,993

219,968

 

 

   

109,997

109,837

 

 

   

210,322

136,856

 

 

   

14,377

15,941

 

 

   

967,929

871,813

 

 

Chris C. Ruble

   
2016
 
   
450,000
 
   
220,000
 
   
110,000
 
   
244,278
 
   
7,283
 
   
1,031,561
 

President - Expedited Services

   

2015

2014

 

 

   

414,072

406,800

 

 

   

219,993

219,968

 

 

   

109,997

109,837

 

 

   

210,657

137,126

 

 

   

15,759

18,016

 

 

   

970,478

891,747

 

 

Michael L. Hance

   
2016
 
   
360,000
 
   
220,000
 
   
110,000
 
   
162,000
 
   
8,910
 
   
860,910
 

Senior Vice President, Chief Legal Officer and Secretary

   

2015

2014

 

 

   

334,200

315,628

 

 

   

219,993

119,944

 

 

   

109,997

59,918

 

 

   

178,439

111,238

 

 

   

17,722

17,582

 

 

   

860,351

624,310

 

 

Rodney L. Bell

   
2016
 
   
367,109
 
   
166,667
 
   
83,333
 
   
165,199
 
   
9,433
 
   
791,741
 

Former Senior Vice President and Chief Financial Officer

   

2015

2014

 

 

   

358,109

338,661

 

 

   

219,993

219,968

 

 

   

109,997

109,837

 

 

   

188,083

114,157

 

 

   

18,892

20,185

 

 

   

895,074

802,808

 

 

(1)Represents the aggregate grant date fair value ofnon-vested restricted share and performance share awards. The fair values of these awards were determined in accordance with FASB ASC Topic 718. The awards for which the aggregate grant date fair value is shown in this table include the awards described in the Grants of Plan-Based Awards for Fiscal 2016 Table on page 38 of this Proxy Statement. The assumptions used in determining the grant date fair values of these awards are set forth in the notes to the Company’s consolidated financial statements, which are included in our Annual Report on Form10-K for the year ended December 31, 2016, filed with the SEC.
(2)Represents the aggregate grant date fair value of stock option awards. The fair values of these awards were determined in accordance with FASB ASC Topic 718. The awards for which the aggregate grant date fair value is shown in this table include the awards described in the Grants of Plan-Based Awards for Fiscal 2016 Table on page 38 of this Proxy Statement. The assumptions used in determining the grant date fair values of these awards are set forth in the notes to the Company’s consolidated financial statements, which are included in our Annual Report on Form10-K for the year ended December 31, 2016, filed with the SEC.
(3)Represents cash incentives earned under the 2016 Annual Cash Incentive Plan.
(4)See the All Other Compensation Table on page 37 of this Proxy Statement for additional information.

36

NEOs.

summarycomptable.jpg



All Other Compensation Table

The following table shows the components of “all other compensation” earned in 2016, 2015 and 20142019 by the Named Executive Officers.

Name &

Principal Position

  Year   Total All
Other (1)		   Car
Allowance &
Commuting
Expenses (2)		   401(k)
Match (3)		   Dividends (4)   Long-term Disability
Insurance (5)		 

Bruce A. Campbell

   
2016
 
  $
14,229
 
  $
—  
 
  $
3,975
 
  $
9,408
 
  $
846
 

Chairman, President and Chief Executive Officer

   

2015

2014

 

 

   

21,350

23,867

 

 

   

9,000

9,000

 

 

   

4,402

3,809

 

 

   

7,102

8,097

 

 

   

846

2,961

 

 

Michael J. Morris

   
2016
 
   
55,234
 
   
—  
 
   
1,717
 
   
2,065
 
   
846
 

Senior Vice President and Chief Financial Officer

   

2015

2014

 

 

   

—  

—  

 

 

   

—  

—  

 

 

   

—  

—  

 

 

   

—  

—  

 

 

   

—  

—  

 

 

Matthew J. Jewell

   
2016
 
   
6,723
 
   
—  
 
   
3,415
 
   
2,462
 
   
846
 

President - Logistics Services

   

2015

2014

 

 

   

14,377

15,941

 

 

   

9,000

9,000

 

 

   

2,188

2,361

 

 

   

2,343

2,672

 

 

   

846

1,908

 

 

Chris C. Ruble

   
2016
 
   
7,283
 
   
—  
 
   
3,975
 
   
2,462
 
   
846
 

President - Expedited Services

   

2015

2014

 

 

   

15,759

18,016

 

 

   

9,000

9,000

 

 

   

3,570

4,432

 

 

   

2,343

2,672

 

 

   

846

1,912

 

 

Michael L. Hance

   
2016
 
   
8,910
 
   
1,827
 
   
3,975
 
   
2,262
 
   
846
 

Senior Vice President, Chief Legal Officer and Secretary

   

2015

2014

 

 

   

17,722

17,582

 

 

   

10,690

10,827

 

 

   

4,435

3,747

 

 

   

1,751

1,457

 

 

   

846

1,551

 

 

Rodney L. Bell

   
2016
 
   
9,433
 
   
2,461
 
   
3,975
 
   
2,151
 
   
846
 

Former Senior Vice President and Chief Financial Officer

   

2015

2014

 

 

   

18,892

20,185

 

 

   

11,245

11,461

 

 

   

4,458

4,460

 

 

   

2,343

2,672

 

 

   

846

1,592

 

 

(1)With respect to Mr. Morris only, this amount includes $21,460.09 in temporary housing costs, $13,175.59 in closing costs and $15,970.29 in moving expenses.
(2)The Company provides reimbursement of certain commuting expenses plus, in 2014 and 2015, a $9,000 annual car allowance to officers.
(3)The amount shown represents the Company’s contributions to the 401(k) Plan.
(4)Represents dividend payments during 2016 on allnon-vested restricted shares held by the executive. These dividend payments are nonforfeitable.
(5)Represents premiums paid by the Company for long-term disability insurance for officers of the Company.

37

NEOs.

allothercomptable.jpg



Grants of Plan-Based Awards for Fiscal 2016

2019

The following table shows the plan-based awards granted to the Named Executive OfficersNEOs in 2016.

       Estimated Future Payouts Under Non-Equity
Incentive Plan Awards		   Estimated Future Shares to be
Issued Under Equity Incentive Plan
Awards (1)		   All Other   All Other
Option
Awards;		   Exercise     

Name

  Grant Date   Threshold ($)   Target
($)		   Maximum
($)		   Threshold   Target   Maximum   Stock
Awards;
Numbers of
Stock
(2), (4)		   Numbers of
Securities
Underlying
Options
(3), (4)		   or Base
Price of
Option
Awards
(5)		   Grant Date
Fair Value of
Stock and
Option Awards		 

Bruce A. Campbell

   2/8/2016   $—     $750,000   $1,500,000               

Chairman, President and Chief Executive Officer

   

2/8/2016

2/8/2016

2/8/2016

 

 

 

         5,131    10,261    20,522   

 

 

 

11,450

 

 

  

 

 

 

 

 

42,632

 

 

 

  

 

 

$

 

 

43.67

 

 

 

  $

 

500,000

500,000

500,000

 

 

 

Michael J. Morris

   6/27/2016    —      285,000    570,000               

Senior Vice President and Chief Financial Officer

   

6/27/2016

6/27/2016

6/27/2016

 

 

 

              

 

 

 

7,648

 

 

      

 

 

 

330,011

 

 

Matthew J. Jewell

   2/8/2016    —      330,750    882,000               

President - Logistics Services

   

2/8/2016

2/8/2016

2/8/2016

 

 

 

         1,129    2,257    4,514   

 

2,519

 

  

 

9,379

 

  

 

43.67

 

   

110,000

110,000

110,000

 

 

 

Chris C. Ruble

   2/8/2016    —      330,750    882,000               

President - Expedited Services

   

2/8/2016

2/8/2016

2/8/2015

 

 

 

         1,129    2,257    4,514   

 

2,519

 

  

 

9,379

 

  

 

43.67

 

   

110,000

110,000

110,000

 

 

 

Michael L. Hance

   2/8/2016    —      278,250    742,000               

Senior Vice President, Chief Legal Officer and Secretary

   

2/8/2016

2/8/2016

2/8/2016

 

 

 

         1,129    2,257    4,514   

 

 

 

2,519

 

 

  

 

 

 

 

 

9,379

 

 

 

  

 

 

 

 

 

43.67

 

 

 

   

110,000

110,000

110,000

 

 

 

Rodney L. Bell

   2/8/2016    —      275,332    734,218               

Senior Vice President and Chief Financial Officer

   

2/8/2016

2/8/2016

2/8/2016

 

 

 

         855    1,710    3,420   

 

 

 

1,908

 

 

  

 

 

 

 

 

7,105

 

 

 

  

 

 

 

 

 

43.67

 

 

 

   

83,333

83,334

83,333

 

 

 

2019.
planbasedawards1.jpg
planbasedawards2.jpg



Outstanding Equity Awards at Fiscal Year-End
The following table shows information about outstanding equity awards at December 31, 2019.
outstandingequity1.jpg
(1)Represents performance share awards granted under the Stock Incentive Plan. The performance shares cliff vest after the close of the three-year performance period that ends December 31, 2017 and the number of shares that vest will be based on the TSR of Forward Air Corporation stock compared to the TSR of a determined peer group. See pages28-29 of this Proxy Statement for additional information.
(2)Representsnon-vested restricted shares granted under the Stock Incentive Plan, or in the case of Mr. Morris, the Omnibus Plan.
(3)Represents stock options granted under the Stock Incentive Plan.
(4)EachIn general, each grant vests equally over a three-year period with the first vesting occurring on theone-year anniversary of the grant date.
(5)In accordance with the provisions of the Stock Incentive Plan the exercise price of stock option grants is set using the closing market price on the day of grant. In the event that there is no public trading of the Company’s common stock on the date of stock option grant, the exercise price will be the closing price on the most recent, prior date that the Company’s common stock was traded.

38

Employment Agreement with Bruce A. Campbell

There is an Employment Agreement between Bruce A. Campbell and the Company, which was effective October 30, 2007. This Employment Agreement was amended in December of 2008 to the extent necessary to make the Agreement comply with Section 409A of the Internal Revenue Code and the Treasury regulations promulgated under that section, which relate to nonqualified deferred compensation. The Employment Agreement was subsequently amended in February of 2009 to extend the term of the Agreement to December 31, 2012. (The Employment Agreement and all amendments thereto are referred to collectively as the “Employment Agreement.”) The term of the Employment Agreement automatically extends for additionalone-year terms thereafter unless the Board or Mr. Campbell provide prior notice ofnon-renewal at least six months before the expiration of the then-pending term.

Under the Employment Agreement, Mr. Campbell received an annual base salary of not less than $500,000, subject to adjustment annually in the discretion of the Committee. Mr. Campbell is eligible under the Employment Agreement to receive an annualyear-end cash bonus dependent upon the achievement of performance objectives by Mr. Campbell and the Company as established by the Committee. The Employment Agreement provides that thisyear-end bonus may be paid in one or more installments, on or after December 1 of the measurement year but no later than March 15 of the following year. The Employment Agreement further provides that Mr. Campbell will be entitled to the same fringe benefits as are generally available to the Company’s executive officers.

While the Company does not have employment agreements with any of its other Named Executive Officers, the Company did adopt an executive severance and change and control plan, which became effective January 1, 2013, that provides for certain payments to its Named Executive Officers in the event of a termination or a change in control. This plan is discussed in greater detail on pages42-45 of this Proxy Statement under a Section entitled “2016 Potential Payments upon Termination, Change of Control, Death or Disability.”

39

Outstanding Equity Awards at FiscalYear-End

The following table shows information about outstanding equity awards at December 31, 2016.

   Option Awards   Stock Awards 

Name

  Number of Securities
Underlying
Unexercised Options
(#) Exercisable		   Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
(1)		   Option
Exercise
Price ($)		   Option
Grant Date		   Option
Expiration
Date		   Number
of Shares
of Stock
That
Have Not
Vested
(1)		   Market
Value of
Shares of
Stock That
Have Not
Vested (2)		   Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares
That Have
Not Vested
(3)		   Equity
Incentive
Plan
Awards:
Market
Value of
Unearned
Shares That
Have Not
Vested (2)		 

Bruce A. Campbell

   37,037     $28.61    2/11/11    2/11/18         

Chairman, President and Chief Executive Officer

   

25,940

24,486

14,847

6,916

 

 

 

 

   

7,424

13,830

42,632

 

 

 

   

36.55

37.14

42.48

50.71

43.67

 

 

 

 

 

   

2/7/12

2/7/13

2/6/14

2/9/15

2/8/16

 

 

 

 

 

   

2/7/19

2/7/20

2/6/21

2/9/22

2/8/23

 

 

 

 

 

        
             18,447   $874,019    59,110   $2,800,632 

Michael J. Morris

   —      —      —      —      —      7,648    362,362    —      —   

Senior Vice President, Chief Financial Officer and Treasurer

                  

Matthew J. Jewell

   12,222    —      28.61    2/11/11    2/11/18         

President -

Logistics Services

   

8,560

8,080

4,899

2,282

 

 

 

 

   

—  

—  

2,450

4,564

9,379

 

 

 

 

 

   

36.55

37.14

42.48

50.71

43.67

 

 

 

 

 

   

2/7/12

2/7/13

2/6/14

2/9/15

2/8/16

 

 

 

 

 

   

2/7/19

2/7/20

2/6/21

2/9/22

2/8/23

 

 

 

 

 

        
             4,828    228,751    12,344    584,859 

Chris C. Ruble

   1,435    —      28.61    2/11/11    2/11/18         

President -

Expedited Services

   

8,560

8,080

4,899

2,282

 

 

 

 

   

—  

—  

2,450

4,564

9,379

 

 

 

 

 

   

36.55

37.14

42.48

50.71

43.67

 

 

 

 

 

   

2/7/12

2/7/13

2/6/14

2/9/15

2/8/16

 

 

 

 

 

   

2/7/19

2/7/20

2/6/21

2/9/22

2/8/23

 

 

 

 

 

        
             4,828    228,751    12,344    584,859 

Michael L. Hance

   6,666    —      28.61    2/11/11    2/11/18         

Senior Vice President, Chief Legal Officer and Secretary

   

4,669

4,407

2,673

2,282

 

 

 

 

   

—  

—  

1,336

4,564

9,379

 

 

 

 

 

   

36.55

37.14

42.48

50.71

43.67

 

 

 

 

 

   

2/7/12

2/7/13

2/6/14

2/9/15

2/8/16

 

 

 

 

 

   

2/7/19

2/7/20

2/6/21

2/9/22

2/8/23

 

 

 

 

 

        
             4,436    210,178    10,270    486,593 

Rodney L. Bell

   12,222      28.61    2/11/11    2/11/18         

Senior Vice President, Chief Financial Officer and Treasurer

   

4,899

2,282

 

 

   

2,450

4,564

7,105

 

 

 

   

42.48

50.71

43.67

 

 

 

   

2/6/14

2/9/15

2/8/16

 

 

 

   

2/6/21

2/9/22

2/8/23

 

 

 

        
             4,217    199,801    11,250    533,025 

(1)Each grant vests equally over a three-year period with the first vesting occurring on theone-year anniversary of the grant date.
(2)The market value is based on the closing price of the Company’s common stock on Nasdaq on December 30, 201631, 2019 of $47.38.$69.95.
(3)

Represents performance share awards granted under the Stock IncentiveOmnibus Plan. The performance shares cliff vest after the close of their respective three-year performance periods. The number of shares that vest will be based on the TSR of Forward Air Corporation stock compared to the TSR of a determined peer group. See page 29pages 31-32 of this Proxy Statement for additional

40

information. Shares presented represent the maximum available award. As to date, the Company’s TSR performance under existing awards would result in payouts ranging from target to maximum payout.

41




Option Exercises and Stock Vested

The following table shows information about options exercised or shares acquired on vesting during 2016.

   Option Awards   Stock Awards 

Name

  Number
of Shares
Acquired
on
Exercise
(#)		   Value
Realized
Upon
Exercise
($) (1)		   Number of
Shares
Acquired
on Vesting
(#)		   Value Realized
Upon Vesting
($) (1)		 

Bruce A. Campbell

   100,000   $2,413,056    18,129   $773,067 

Chairman, President and Chief Executive Officer

        

Michael J. Morris

   —      —      —      —   

Senior Vice President and Chief Financial Officer

        

Matthew J. Jewell

   50,000    1,196,046    5,982    255,088 

President – Logistics Services

        

Chris C. Ruble

   10,787    205,373    5,982    255,088 

President – Expedited Services

        

Michael L. Hance

   18,000    424,464    3,590    153,187 

Senior Vice President, Chief Legal Officer and Secretary

        

Rodney L. Bell

   92,197    1,901,380    5,982    255,088 

Former Senior Vice President and Chief Financial Officer

        

(1)The value realized upon exercise or vesting is based on the current market price on the date of exercise or vesting.

42

2016 2019.

exercisesandvestings.jpg
Securities Authorized for Issuance Under Equity Compensation Plans
The following table provides information as of December 31, 2019 with respect to shares of our Common Stock that may be issued under the following existing equity compensation plans: the Stock Incentive Plan, the Omnibus Plan, the Non-Employee Director Stock Option Plan (the “NED Plan”), the 2000 Non-Employee Director Award (the “2000 NED Award”), the ESPP and the Amended Plan. Our shareholders have approved each of these plans.
equitycompplans.jpg


Employment Agreement with Thomas Schmitt
On June 6, 2018, the Company entered into an employment agreement with Mr. Schmitt (for purposes of this section, the “employment agreement”). Under the employment agreement, Mr. Schmitt’s compensation will consist of an initial base salary of $800,000 and an annual target bonus set at 100% of base salary, with a maximum possible bonus of 200% of base salary. Mr. Schmitt will receive a signing bonus of $413,000 (which is subject to increase if the effective date occurs after September 1, 2018) and 25,000 restricted shares of Company common stock, which will vest equally on each of the first, second and third anniversaries of the grant date. In addition, the Company will grant Mr. Schmitt options to purchase up to 100,000 shares of Company common stock which options will have an exercise price equal to the closing stock price of the Company’s common stock on the grant date and will vest on each of the first, second, and third anniversaries of the grant date.
In February 2020, provided Mr. Schmitt continues to be employed with the Company, in connection with the Company’s annual equity grants, he will receive an additional equity grant valued at approximately $1.4 million at the time of the grant which grant will be designed similarly to the design used for other executive employees of the Company. Following 2020, Mr. Schmitt shall continue to participate in the Company’s employee incentive programs, as administered by the Compensation Committee of the Board.
In addition to the employment agreement, Mr. Schmitt entered into the Company’s Restrictive Covenants Agreement and will participate in the Executive Severance Plan. Mr. Schmitt’s entitlement to termination benefits, if any, and his continuing obligations to the Company following any termination will be determined by the Executive Severance Plan and the Restrictive Covenant Agreement.
While the Company does not have employment agreements with any of its other NEOs, the Company did adopt an executive severance and change in control plan, which became effective January 1, 2013, and was amended and restated May 24, 2018, that provides for certain payments to its NEOs in the event of a termination or a change in control. This plan is discussed in greater detail on pages 43-46 of this Proxy Statement under a Section entitled “Potential Payments upon Termination, Change of Control, Death or Disability.”
CEO Pay Ratio
As required by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(u) of Regulation S-K, we are providing the following information about the relationship of the annual total compensation of our employees and the annual total compensation of Mr. Tom Schmitt, our Chief Executive Officer (our “CEO”). The pay ratio included in this information is a reasonable estimate calculated in a manner consistent with Item 402(u) of Regulation S-K. In 2017, to identify the median employee as well as to determine the annual total compensation of our median employee, we took the following steps:
We determined that as of December 31, 2017, our employee population consisted of 4,811 individuals (including full-time and part-time employees, other than our CEO) working at our parent company and consolidated subsidiaries in the United States and Canada. Of these individuals, 15 employees were located in Canada. As permitted by SEC rules, we excluded the Canadian employees, who represented 0.31% of our employee population. We then identified our “median employee” based on our United States employee population of 4,796.
We identified the “median employee” by examining 2017 total cash compensation. For purposes of determining total cash compensation, we included base salary, incentive compensation, 401(k) match and overtime pay, as reflected in our payroll records. As permitted by SEC rules, we annualized the total cash compensation of all individuals who were employed as of December 31, 2017.
We identified our median employee using this compensation measure, which was consistently applied to all our employees included in the calculation.
We believe there have been no changes that would significantly affect our pay ratio disclosure or our median employee. However, our previously identified median employee was no longer employed as of December 31, 2019. As a result, and as permitted by the regulation, we selected another employee, whose total cash compensation was


substantially similar to the original median employee’s total compensation, for 2019. After performing an analysis of our employee population, we concluded that there has been no change in our employee population or employee compensation arrangements that we believe would significantly impact the selection of our median employee or our pay ratio disclosure.
For 2019, our last completed fiscal year:
The annual total compensation of our median employee was $44,550; and
Mr. Schmitt’s total annual compensation, as set forth in the Summary Compensation Table, was $1,332,721.

Based on this information, for 2019, the ratio of the annual total compensation of our CEO, to the total compensation of the median employee was 29.9 to 1. As previously disclosed, Mr. Schmitt did not receive an equity grant in 2019 given that he received an equity grant upon his appointment as CEO in September 2018. It is expected that Mr. Schmitt’s 2020 compensation will include an equity grant commiserate with his role as our CEO and therefore be meaningfully greater than his compensation in 2019. As such, we expect that the ratio of the annual total compensation of our CEO, to the total compensation of the median employee will be higher in 2020.
Potential Payments Upon Termination, Change of Control, Death or Disability

Under the Employment Agreement with Mr. Campbell,Thomas Schmitt the Company may terminate Mr. Campbell’sSchmitt’s employment at any time with or without “just cause,“cause,” as defined in the Employment Agreement. If the Company should terminateSeverance Plan. Mr. Campbell without “just cause,” he would be entitled to receive (i) his base salary for the longer of one year from the date of termination or the remainder of the then-pending term of the Employment Agreement but not to exceed two years; (ii) any unpaid bonus amounts previously earned; and (iii) continued insurance coverage for one year from the date of such termination. Mr. Campbell would not be entitled to any unearned salary, bonus or other benefits if the Company were to terminate him for “just cause.”

Mr. CampbellSchmitt also may terminate the Employment Agreement at any time; however, he would not be entitled to any unearned salary, bonus or other benefits (unless he is otherwise providing services to the Company in some capacity) if he does so absent circumstances resulting from a “change of control” or “material change in duties,” eachas defined in the Employment Agreement. In the event of a “change of control” or “material change in duties,” Mr. Campbell would have two alternatives. Mr. Campbell may resignSeverance Plan. The Participation and receive (i) his base salary for one year following the date of the “change of control” or “material change in duties,” (ii) a cash bonus equal to the prior year’syear-end cash bonus, plus any unpaid bonus amounts previously earned; (iii) any other payments due, including, among others, accrued and unpaid vacation pay; (iv) immediate acceleration of any stock options which are not then exercisable; and (v) continued insurance coverage for one year following the date of the “change of control” or “material change in duties.” Alternatively, Mr. Campbell could continue to serve as President and Chief Executive Officer of the Company for the duration of the term of the Employment Agreement or until he or the Company terminates the Employment Agreement. The EmploymentRestrictive Covenants Agreement also containsnon-competition andnon-solicitation provisions which apply during his employment and for a period ofthirty-six (36) twelve (12) months following termination of his employment.

Under the Severance Plan, which is applicable to selected employees of the Company, including Mr. Schmitt and the Named Executive Officers (other than its Chief Executive Officer),NEOs, each participant would receive severance benefits in the event his or her employment is terminated in certain circumstances. Under the Severance Plan, a participant would receive severance benefits if theirhis or her employment is involuntarily terminated by the Company (other than for cause or upon death or disability, as those terms are defined in the Severance Plan) or in the event the participant voluntarily terminates theirhis or her employment for good reason“good reason” (as defined in the Severance Plan). The circumstances that permit a participant to terminate employment for good reason and receive severance benefits after a change in control differ from the more limited circumstances that permit a termination of employment for good reason prior to or absent a change in control. Generally, eligible participants would be entitled to the severance benefits included in the chart below upon an involuntary termination of their employment, in addition to any accrued obligations (such as unpaid salary through the termination date) and vested amounts to which they may be entitled under the Company’s benefit plans:

General Severance Upon Involuntary

Termination Absent a Change in Control

Severance Upon Involuntary Termination

Within Two Years after a Change in

Control

•     a lump sum severance payment in an amount equal to one year of the participant’s annualized base salary

•     a lump sum severance payment in an amount equal to two times the participant’s annualized base salary

•     apro-rata annual incentive for the fiscal year in which the termination occurs based on actual performance results

•     apro-rata target annual incentive for the fiscal year in which the termination occurs

43

•     a lump sum healthcare assistance payment in an amount equal to the excess of the monthly COBRA premium to provide the group medical, dental, vision, and/or prescription drug plan benefits the participant had been receiving before the termination above the monthly premium payable by active employees under the Company’s healthcare plan for similar coverage, multiplied by 12 months

•     a lump sum healthcare assistance payment in an amount equal to the excess of the monthly COBRA premium to provide the group medical, dental, vision, and/or prescription drug plan benefits the participant had been receiving before the termination above the monthly premium payable by active employees under the Company’s healthcare plan for similar coverage, multiplied by 24 months

•     access to up to $20,000 of employer-paid outplacement services for 12 months following termination

•     access to up to $20,000 of employer-paid outplacement services for 12 months following termination



sevtable.jpg
A condition in the Severance Plan is the execution of the Participation and Restrictive Covenants Agreement, which contains anon-competition andnon-solicitation agreement with respect to the Company’s employees and customers for a specified periodtwelve months following the termination of employment. In addition, any severance benefits payable under the Severance Plan are subject to the execution by the participant of a general release of claims against the Company and certain affiliated persons and entities. The Severance Plan does not provide for any taxgross-up payments to participants.

Payments and benefits under the Severance Plan are subject to recovery under any clawback, recovery or recoupment policy.

In addition to the benefits available under the Severance Plan, all of the Named Executive OfficersNEOs are eligible to receive certain other benefits in the event of specific termination of employment, including as a consequence of a change in control. Under the Company’s Annual Incentive Plan, any unpaid incentive amounts previously earned under this plan would be payable to any Named Executive OfficerNEO terminated without cause. Under the Stock Incentive Plan, anynon-vested restricted shares, options or other forms of equity-based compensation granted prior to 2016 will vest upon a “Change in Control.” Beginning with long-term incentive grants made in 2016 made pursuant to either the Stock Incentive Plan or Omnibus Plan, vesting of such awards upon a change in control is double-trigger (i.e., not accelerated unless the awards are not assumed or converted by the acquirer or in the event there is an involuntary termination of employment in connection with or within 24 months after the change in control).

The following table shows the estimated benefits payable to each Named Executive OfficerNEO in the event of termination of employment or change of control of the Company. The amounts shown assume that a termination of employment or a change of control occurs on December 31, 2016.2019. The amounts do not include payments or benefits provided under insurance or other plans that are generally available to all full-time employees.

Name

  Termination
without Cause
($) (1)		   Death and
Disability
($) (2)		   Change of Control
($) (3) (4)		 

Bruce A. Campbell

      

Employment Agreement

  $1,215,718   $1,215,718   $1,578,836 

Stock Incentive Plan

   —      6,701,570    6,701,570 
  

 

 

   

 

 

   

 

 

 

Total

  $1,215,718   $7,917,288   $8,280,406 

Michael J. Morris (5)

      

Omnibus Plan

   —      362,362    362,362 

Matthew J. Jewell (5)

      

Stock Incentive Plan

   —      1,590,310    1,590,310 

Chris C. Ruble (5)

      

Stock Incentive Plan

   —      1,590,310    1,590,310 

Michael L. Hance (5)

      

Stock Incentive Plan

   —      1,420,690    1,420,690 

Rodney L. Bell (5)

      

Stock Incentive Plan

   —      1,401,784    1,401,784 

44



estimatedbenefits1.jpg
(1)The Company entered into an Employment Agreement with Bruce Campbell effective October 30, 2007 which has been subsequently amended to extend the termCash severance includes: (1) unpaid cash incentives earned as of the Employment Agreement to December 31, 2012 withone-year annual extensions thereafter absent a notice ofnon-renewal by the Company or Mr. Campbell. Under this Agreement, Mr. Campbell is entitled upon termination without “just cause” (as defined in the Agreement) to payment of his2019, (2) base salary for the longerone year if terminated without cause, or base salary for two years if terminated within 2 years following a Change of one (1) year, or the remainder of the Agreement term, payment of any bonus previously earned but unpaid,Control, and one (1) year of health insurance continuation. Mr. Campbell is not entitled to any of these payments/benefits if he is terminated with “just cause” or he voluntarily resigns without a “Change in Control” or “Material Change in Duties,” as such terms are defined in the Agreement. The Company does not have employment agreements with any of its other Named Executive Officers.
(2)Under his Employment Agreement, upon termination due to his disability or death, Mr. Campbell (or his spouse or estate(3) in the event of death) is entitled to the same payments/benefits that Mr. Campbell is entitled to receivetermination within 2 years following a Change of Control, payment in the eventamount of atwo times the target annual cash incentive amount determined as of the termination without “just cause;” however, indate.
(2)In the event of termination due to death all such payments owed shall be made in a lump sum payment within 60 daysor disability, the amount includes (1) the unvested restricted shares valued at the market price of his death.
(3)Under his Employment Agreement, upon a Change in Control (as defined inour common stock on December 31, 2019 ($69.95), (2) the Agreement), Mr. Campbell is entitled to payment of his base salary for one (1) year payable over the course of the twelve (12) months following the Change in Control, payment of any bonus previously earned but unpaid, payment of an amount equal to the prior-year’syear-end bonus and one (1) year continuation of health insurance. The amounts in the Stock Incentive Plan rows for death, disability and Change in Control reflect unvested stock option awards detailed in the “Outstanding Equity Awards at FiscalYear-End” table on page 40, multiplied by the excess, if any, of the market price of our common stock on December 30, 201631, 2019 ($47.38)69.95) over the exercise price, listedand (3) the unvested performance shares, calculated as the target number of performance shares specified in each grant multiplied by the percentage of months of service completed in the same table.
(4)Beginning with long-term incentive grants made in 2016 made pursuant to either the Stock Incentive Plan or Omnibus Plan, vesting of such awards upon a change in control is double-trigger (i.e., not accelerated unless the awards are not assumed or convertedfull performance period, multiplied by the acquirer or inmarket price of our common stock on December 31, 2019 ($69.95). In the event there is an involuntaryof termination due to a Change of employment in connection with or within 24 months afterControl, the change in control).
(5)The Severance Plan provides foramount includes (1) the paymentunvested restricted shares valued at the market price of severance benefits to participants inour common stock on December 31, 2019 ($69.95), (2) the event their employment is involuntarily terminatedunvested stock option awards multiplied by the Company (other than for cause or upon death or disability, as defined byexcess, if any, of the Severance Plan) or by the participant for good reason (as defined in the Severance Plan) (collectively, “Involuntary Terminations”). Assuming amarket price of our common stock on December 31, 2016, involuntary termination, under2019 ($69.95) over the Severance Planexercise price, and (3) the above officers, other than the Chief Executive Officer, would be entitled to the following severance benefits upon an Involuntary Termination, in addition to any accrued obligation and vested amounts to which they may be entitled under the Company’s benefit plans:

Name

  Unpaid
Annual
Incentive
(i)		   Salary &
Incentive
(ii)		   Healthcare
(iii)		   Placement
Services
(iv)		   Total
Severance		 

Michael J. Morris

          

Termination without Cause

  $171,000   $380,000   $21,272   $20,000   $592,272 

Change of Control

   171,000    1,330,000    42,544    20,000    1,563,544 

Matthew J. Jewell

          

Termination without Cause

   118,125    450,000    21,272    20,000    609,397 

Change of Control

   118,125    1,575,000    42,544    20,000    1,755,669 

Chris C. Ruble

          

Termination without Cause

   244,278    450,000    15,718    20,000    729,996 

Change of Control

   244,278    1,575,000    31,436    20,000    1,870,714 

Michael L. Hance

          

Termination without Cause

   162,000    360,000    21,272    20,000    563,272 

Change of Control

   162,000    1,260,000    42,544    20,000    1,484,544 

Rodney L. Bell

          

Termination without Cause

   165,199    367,109    21,272    20,000    573,580 

Change of Control

   165,199    1,284,882    42,544    20,000    1,512,625 

45

i.Represents unpaid cash incentives earned under the 2016 annual Cash Incentive Plan asgreater of December 31, 2016.
ii.Participants are entitled to a lump sum severance payment in an amount equal to the participant’s annualized base salary in effect on his or her termination date if the termination date is prior to or absent a Change in Control, or equal to two times the sum(x) 100% of the participant’s base salary and target annual incentive (each determinednumber of unvested performance shares specified on the grant notice or (y) the number of performance shares that otherwise would have become vested as of the vesting date, based on the TSR multiplier attained as of the date of termination, date) ifshall become vested performance shares valued at the terminationmarket price of our common stock on December 31, 2019 ($69.95). For purposes of calculating the Change of Control amount, we assume that 100% of the target number of unvested performance shares is greater than the number of shares that would have become vested based on the TSR multiplier as of the date is on or within two years following a Change in Control.of termination.


iii.
(3)Participants are entitled to a lump sum healthcare assistance payment in an amount equal to the excess of the monthly COBRA premium to provide the group medical, dental, vision, and/or prescription drug plan benefits the participant had been receiving before termination above the monthly premium payable by active employees under the Company’s healthcare plan for similar coverage, multiplied by 12 months if the termination date is prior to or absent a Change inof Control, or by 24 months if the termination date is on or within two years following a Change inof Control.
iv.
(4)Participants are entitled to access to up to $20,000 of employer-paid outplacement services for 12 months following termination.

46




Audit Committee Report

The Audit Committee oversees the Company’s financial reporting process on behalf of the Board. Management has the primary responsibility for the financial statements and the reporting process, including the systems of internal controls. In fulfilling its oversight responsibilities, the Audit Committee reviewed the audited financial statements in the 20162019 Annual Report with management and the Company’s independent registered public accounting firm, Ernst & Young LLP, including a discussion of the quality, not just the acceptability, of the accounting principles, the reasonableness of significant judgments and the clarity of disclosures in the financial statements. The Audit Committee’s function is more fully described in its charter, which is available through the Investor Relations—GovernanceInvestors-Governance link on the Company’s website, www.forwardaircorp.com.

The Audit Committee reviews the charter on an annual basis. The Board annually reviews the definition of independence under Nasdaq’s listing standards for audit committee members and has determined that each member of the Audit Committee meets that standard.

Management is responsible for the preparation, presentation and integrity of the Company’s financial statements, accounting and financial reporting principles, internal controls and procedures designed to ensure compliance with accounting standards, and applicable laws and regulations. Ernst & Young LLP is responsible for performing an independent audit and reporting on the consolidated financial statements of the Company and its subsidiaries and the effectiveness of the Company’s internal controls over financial reporting.

The Audit Committee has been updated quarterly on management’s process to assess the adequacy of the Company’s system of internal controls over financial reporting, the framework used to make the assessment, and management’s conclusions on the effectiveness of the Company’s internal controls over financial reporting. The Audit Committee has also discussed with representatives of Ernst & Young LLP the Company’s internal control assessment process and the firm’s audit of the Company’s system of internal controls over financial reporting.

The Audit Committee has reviewed and discussed the audited financial statements of the Company for the fiscal year ended December 31, 20162019 with the Company’s management and has discussed with Ernst & Young LLP the matters required to be discussed by the Statement on Auditing Standard No. 1301, as amended, and as adopted by the Public Company Accounting Oversight Board (“PCAOB”). The Audit Committee also discussed with Ernst & Young LLP its independence from management and the Company, and received Ernst & Young LLP’s written disclosures and letter pursuant to applicable requirements of the PCAOB regarding the independent accountant’s communication with the Audit Committee concerning independence. The Audit Committee further considered the compatibility of thenon-audit services with maintaining Ernst & Young LLP’s independence.

Ernst & Young LLP has served as the Company’s independent registered public accountant since 1991, and Ernst & Young LLP’s current lead audit partner was selected in 2017.

In performing all of these functions, the Audit Committee acts in an oversight capacity. The Audit Committee reviews the Company’s quarterly reports on Form10-Q and annual report on Form10-K prior to filing with the SEC. In its oversight role, the Audit Committee relies on the work and assurances of the Company’s management, which has the primary responsibility for establishing and maintaining adequate internal controls over financial reporting and for preparing the financial statements, and other reports, and of the independent registered public accountants, who are engaged to audit and report on the consolidated financial statements of the Company and its subsidiaries and the effectiveness of the Company’s internal controls over financial reporting.

47



Based on these reviews and discussions, the Audit Committee recommended to the Board that the audited financial statements be included in the Company’s Annual Report on Form10-K for the fiscal year ended December 31, 20162019 for filing with the SEC.

G. Michael Lynch, Chair

R. Craig Carlock

Douglas M. Madden
Ana B. Amicarella
Valerie A. Bonebrake
Laurie A. Tucker
The Audit Committee of the Board of Directors


Notwithstanding anything to the contrary set forth in any of our previous filings under the Securities Act of 1933, as amended, or the Exchange Act that might incorporate future filings, including this proxy statement, in whole or in part, the Audit Committee Report and the Compensation Committee Report above shall not be incorporated by reference into this proxy statement.

Independent Registered Public Accounting Firm

The Audit Committee has appointed Ernst & Young LLP to serve as the Company’s independent registered public accounting firm for the 20172019 fiscal year, subject to ratification of the appointment by the shareholders of the Company. The fees billed by Ernst & Young LLP for services rendered to the Company and its subsidiaries in 20162019 and 20152018 were as follows:

   2016   2015 

Audit Fees (1)

  $1,552,331   $1,666,039 

Audit Related Fees (2)

   —      —   

Tax Fees (2)

   805,136    877,139 

All Other Fees (2)

   —      —   

(1)Includes fees and expenses related to the audit and interim reviews of the Company’s financial statements and the audit of the effectiveness of the Company’s internal controls over financial reporting for the fiscal year notwithstanding when the fees and expenses were billed or when the services were rendered.
(2)Includes fees and expenses for services rendered from January through December of the fiscal year notwithstanding when the fees and expenses were billed.

auditfees.jpg
Pre-Approval Policies and Procedures

The Audit Committee has adopted a policy that requires advance approval of all audit, audit-related, tax services and other services performed by the independent registered public accounting firm. The policy provides forpre-approval by the Audit Committee of specifically defined audit andnon-audit services. The Audit Committee must approve the permitted service before the independent registered public accounting firm is engaged to perform it. During 20162019 and as of the date of this Proxy Statement, the Audit Committeepre-approved all of these services.

48

In February 2019, the Audit Committee delegated to the Chair of the Audit Committee the authority to pre-approve all services obtained from the independent registered public accounting firm up to $50,000.




PROPOSAL 2 –- RATIFICATION OF APPOINTMENT OF INDEPENDENT
REGISTERED

PUBLIC ACCOUNTING FIRM FOR THE 20172019 FISCAL YEAR

The Audit Committee has appointed Ernst & Young LLP to serve as the Company’s independent registered public accounting firm for the 20172020 fiscal year. As in the past, the Board has determined that it would be desirableis in the best interest of the Company and its shareholders to request ratification of the appointment by the shareholders of the Company. If the shareholders do not ratify the appointment of Ernst & Young LLP, the Audit Committee will reconsider the appointment of the independent registered public accounting firm for the 20172020 fiscal year.

A representative of Ernst & Young LLP is not expected to be present at the Annual Meeting, and thus, is not expected to make a statement or be available to respond to questions.

Shareholder Vote Requirement

This proposal will be approved by a majority of the votes cast. Unless otherwise directed therein, the proxies solicited hereby will be voted for approval of Ernst & Young LLP.

Recommendation of the Board

The Board believes the ratification of Ernst & Young LLP as the Company’s independent registered public accounting firm for the 2020 fiscal year is in the best interest of the Company’s shareholders and recommends that shareholders vote FOR ratification of appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm for the 20172020 fiscal year.

PROPOSAL 3 –- ADVISORY VOTE ON COMPENSATION OF NAMED EXECUTIVE

OFFICERS

Introduction

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) which enacted Section 14A of the Exchange Act, requires us to provide our shareholders with the opportunity to approve, on anon-binding, advisory basis, the compensation of our named executive officers.

NEOs.

The Company’s goal with respect to executive compensation is to provide a comprehensive package that is sufficient to attract, motivate and retain executives of outstanding ability, performance and potential. The Compensation Committee seeks to establish and maintain an appropriate relationship between executive compensation and the creation of shareholder value. The Compensation Committee believes that the most effective compensation program is one that provides competitive base pay, rewards the achievement of established annual and long-term goals and objectives, and provides incentives for retention. The Compensation Committee seeks a compensation program that is internally consistent and believes that pay differences among jobs should be commensurate with differences in the levels of responsibility between the Chief Executive Officer and the other Named Executive Officers.

NEOs.

We urge you to read the Compensation Discussion and Analysis section of this Proxy Statement for additional details on our executive compensation, including our compensation philosophy and objectives and the 20162019 compensation of our Named Executive Officers.

NEOs.

We are asking you to vote on the adoption of the following resolution:

RESOLVED,, that the compensation paid to the Company’s named executive officers, as disclosed pursuant to Item 402 of RegulationS-K, including the Compensation Discussion and Analysis, compensation tables and narrative discussion above is herebyAPPROVED.

49

APPROVED.



As an advisory vote, this Proposal isnon-binding. Although the vote isnon-binding, the Board and the Compensation Committee value the opinions of our shareholders, and will consider the outcome of the vote when making future compensation decisions for our named executive officers.

NEOs.

Shareholder Vote Requirement

This proposal will be approved by a majority of the votes cast. Unless contrary instructions are received, shares of common stock represented by duly executed proxies will be voted for the adoption of the resolution approving the compensation of Named Executive Officers.

NEOs.

Recommendation of the Board

The Board recommends a vote FOR approval, on anon-binding, advisory basis, of the compensation of the Named Executive Officers.

PROPOSAL 4 – ADVISORY VOTE ON FREQUENCY OF FUTURE SAY ON PAY VOTES

The Dodd-Frank Act requires us to provide our shareholders with the opportunity to vote, on annon-binding,NEOs. advisory basis, for their preference as to whether votes on the compensation of our named executive officers should occur every one, two or three years. At our 2011 Annual Meeting of Shareholders, our shareholders voted to hold an advisory vote on our executive compensation program every year. Accordingly, we have submitted say on pay votes on the compensation of our named executive officers at every subsequent annual meeting of shareholders.

We are required to hold a vote on the frequency of say on pay votes every six years. In this Proposal 4, we are again asking for shareholder input as to whether, after this year, a say on pay vote should occur every year, every two years or every three years.

After careful consideration, we are recommending that a say on pay vote be submitted to shareholders every year. Our Board continues to believe that an advisory vote every year is the best approach for our Company and our shareholders. An annual advisory vote provides more frequent shareholder feedback to our Board, the Compensation Committee and management regarding our executive compensation programs and policies. As in the past six years, our Board, Compensation Committee and management intend to consider this advisory vote as part of the design of our executive compensation programs and communication of such programs to our shareholders.

The Board will carefully consider the outcome of the vote when making future decisions regarding the frequency of advisory votes on executive compensation. However, because this vote is advisory and not binding, the Board may decide that it is in the best interests of the Company and our shareholders to hold an advisory vote more or less frequently than the alternative that has been selected by our shareholders.

Shareholder Vote Requirement

The frequency (every one, two or three years) receiving the highest number of votes will be deemed to be the choice of our shareholders with respect to this proposal. Shareholders are not voting to approve or disapprove the recommendation of the Board. Shareholders may choose to vote for a frequency of every “1 year,” every “2 years,” every “3 years” or may abstain from voting on this proposal. Unless contrary instructions are received, shares of common stock represented by duly executed proxies will be voted for the “1 year” option.

50

Recommendation of the Board

The Board recommends that you vote to conduct anon-binding advisory shareholder vote on executive compensation every “1 year”.





OTHER MATTERS

Additional Meeting Matters

The Board knows of no additional matters that may come before the meeting; however, if any additional matters should properly come before the meeting or any adjournment or postponement thereof, it is the intention of the persons named in the proxy to vote the proxy in accordance with their best judgment.

Delinquent Section 16(a) Beneficial Ownership Reporting Compliance

Reports

Section 16(a)l6(a) of the Exchange Act and the disclosure requirements of Item 405 of RegulationS-K require the directors and executive officers of the Company, and any persons holding more than 10% of any class of equity securities of the Company, to report their ownership of such equity securities and any subsequent changes in that ownership to the SEC, Nasdaq and the Company. Based solely on a review of the reports that have been filed by or on behalf of such persons in this regard and written representations from our directors and named executive officers,NEOs, we believe that allone late ownership reportsreport by each of Michael Morris, Chris Ruble and C. Robert Campbell, each disclosing one late transaction, were not timely filed during 2016, except Mr. Rodney L. Bell reported late two transactions on one Form 5 filed February 6, 2017; Mr. C. Robert Campbell reported late two transactions on two Form 4s filed December 27, 2016 and December 28, 2016; Tracy A. Leinbach reported late one transaction on a Form 4 filed December 28, 2016; and Mr. G. Michael Lynch reported late one transaction on one Form 5 filed February 6, 2017.

2019.

Shareholder Proposals for the 20182021 Annual Meeting of Shareholders

Any proposal intended to be presented for action at the 20182021 Annual Meeting of Shareholders by any shareholder of the Company must be received by the Secretary of the Company at its principal executive offices not later than December 1, 20173, 2020 in order for such proposal to be considered for inclusion in the Company’s proxy statement and form of proxy relating to its 20182021 Annual Meeting of Shareholders. Nothing in this paragraph shall be deemed to require the Company to include any shareholder proposal which does not meet all the requirements for such inclusion established by Rule14a-8 of the Exchange Act.

For other shareholder proposals to be timely (but not considered for inclusion in the proxy statement for the 20182021 Annual Meeting of Shareholders), a shareholder’s notice must be received by the Secretary of the Company between January 9, 201813, 2021 and February 8, 201812, 2021 and the proposal and the shareholder must comply with Rule14a-4 under the Exchange Act. In the event that a shareholder proposal intended to be presented for action at the next Annual Meeting is not received prior to February 8, 2018,13, 2021, proxies solicited by the Board in connection with the Annual Meeting will be permitted to use their discretionary voting authority with respect to the proposal, whether or not the proposal is discussed in the proxy statement for the Annual Meeting.

Any shareholder proposal must also meet all other requirements contained in our Bylaws.
Householding of Annual Meeting Materials

Some banks, brokers and other nominee record holders may be participating in the practice of “householding” proxy statements and annual reports. This means that only one copy of this Notice of 20172020 Annual Meeting of Shareholders, Proxy Statement and 20162020 Annual Report may have been sent to multiple shareholders in your household, unless the Company has received contrary instructions from one or more

51

shareholders. We will promptly deliver a separate copy of each document to you if you write the Company’s Secretary at Forward Air Corporation, 1915 Snapps Ferry Road, Building N, Greeneville, Tennessee 37745, or call (423)636-7000. If you want to receive separate copies of the Notice of 2020 Annual Meeting of Shareholders, Proxy Statement and 2020 Annual Report in the future, or if you are receiving multiple copies and would like to receive only one copy for your household, you should contact your bank, broker or other nominee record holder, or, if the shares are not held in “street name,” you may contact the Company at the above address and phone number.



Shareholder Communications

Shareholders who wish to communicate with the Board, a Board committee or any such other individual director or directors may do so by sending written communications addressed to the Board, a Board committee or such individual director or directors, c/o Secretary, Forward Air Corporation, 1915 Snapps Ferry Road, Building N, Greeneville, Tennessee 37745. The Company’s Chief Legal Officer will open all shareholder communication for the sole purpose of determining whether the contents represent correspondence to any member of the Board or any group or committee of directors. Any shareholder communication that is not in the nature of advertising, promotions of product or service, or patently offensive material will be forwarded promptly to the member(s) of the Board to whom the shareholder communication is addressed. In the case of any shareholder communication to the Board or any group or committee of directors, the Chief Legal Officer’s office will make sufficient copies of the contents to send to each director who is a member of the group or committee to which the envelope is addressed.

Miscellaneous

It is important that proxies be returned promptly to avoid unnecessary expense. Therefore, shareholders who do not expect to attend the Annual Meeting in person are urged, regardless of the number of shares of common stock owned, to please vote and submit your proxy over the Internet, by telephone or by completing, signing, dating and returning the enclosed proxy in the envelope provided as promptly as possible. If you attend the meeting and desire to vote in person, you may do so even though you have previously sent a proxy.

52

A copy of the Company’s Annual Report on Form10-K for the year ended December 31, 20162019 is included within the Annual Report provided with this Proxy Statement. The Annual Report does not constitute a part of the proxy solicitation material. Copies of exhibits filed with the Form10-K are available, free of charge, upon written request. Requests should be made in writing to Michael L. Hance, Secretary of the Company, at Forward Air Corporation, 1915 Snapps Ferry Road, Building N, Greeneville, Tennessee 37745. The Company’s filings with the SEC are also available, without charge, through the Investor Relations—SECInvestors-SEC Filings link on the Company’s website, www.forwardaircorp.com, as soon as reasonably practical after filing.

 By Order of the Board of Directors,
image.jpg
Greeneville, Tennessee
April 2, 2020

LOGO

Michael L. Hance

Greeneville, TennesseeSenior Vice President,
March 31, 2017
Chief Legal Officer and Secretary

53

LOGO

FORWARD AIR CORPORATION

ATTN: LEGAL DEPARTMENT

1915 SNAPPS FERRY ROAD, BUILDING N

GREENEVILLE, TN 37745

VOTE BY INTERNET -www.proxyvote.com
Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before thecut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.
ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS
If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically viae-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years.

VOTE BY PHONE -1-800-690-6903

Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before thecut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions.

VOTE BY MAIL

Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.



TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:
E20944-P88576KEEP THIS PORTION FOR YOUR RECORDS
DETACH AND RETURN THIS PORTION ONLY

THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.

FORWARD AIR CORPORATION

For

All

Withhold  

All  

For All

Except

To withhold authority to vote for any individual nominee(s), mark “For All Except” and write the number(s) of the nominee(s) on the line below.
The Board of Directors recommends you vote FOR the following:

1.

Election of Directors

☐

☐

☐

Nominees:

01)   Bruce A. Campbell05)Ronald W. Allen
02)   C. Robert Campbell06)Douglas M. Madden
03)   C. John Langley07)R. Craig Carlock
04)   G. Michael Lynch
The Board of Directors recommends you vote FOR proposals 2 and 3.ForAgainstAbstain
2.To ratify the appointment of Ernst & Young LLP as the independent registered public accounting firm of the Company.☐☐☐
3.To approve, on anon-binding, advisory basis, the compensation of the named executive officers (the “say on pay vote”).☐☐☐
The Board of Directors recommends you vote 1 YEAR on the following proposal:1 Year2 Years3 YearsAbstain
4.To approve, on anon-binding, advisory basis, whether future say on pay votes should occur every one, two, or three years (the “say on frequency vote”).☐☐☐☐
NOTE:Such other business as may properly come before the meeting or any adjournment thereof.

Yes

No

Please indicate if you plan to attend this meeting.☐☐

Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.

Signature [PLEASE SIGN WITHIN BOX]

Date

Signature (Joint Owners)

Date

proxycard1.jpg
proxycard2.jpg

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:

The Notice and Proxy Statement and Form 10K Wrap are available at www.proxyvote.com.

E20945-P88576

PROXY

FORWARD AIR CORPORATION
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
OF FORWARD AIR CORPORATION

The undersigned, having received the Notice of Annual Meeting of Shareholders and Proxy Statement, hereby appoints Bruce A. Campbell and C. Robert Campbell, and each of them, proxies with full power of substitution, for and in the name of the undersigned, to vote all shares of common stock of Forward Air Corporation owned of record by the undersigned on all matters which may come before the 2017 Annual Meeting of Shareholders to be held in The Explorer Room, Atlanta Airport Marriott Gateway, 2020 Convention Center Concourse, Atlanta, GA 30337 on May 9, 2017, at 8:00 a.m., EDT, and any adjournments thereof, unless otherwise specified herein. The proxies, in their discretion, are further authorized to vote for the election of a person to the Board of Directors if any nominee named herein becomes unable to serve, or for good cause will not serve, on matters which the Board of Directors does not know a reasonable time before making the proxy solicitation will be presented at the meeting and on other matters which may properly come before the 2017 Annual Meeting and any adjournments thereof.

You are encouraged to specify your choice by marking the appropriate box (see reverse side), but you need not mark any box if you wish to vote in accordance with the Board of Directors’ recommendations. The proxies cannot vote these shares unless you sign and return this card.

This proxy, when properly executed, will be voted in the manner directed herein. If no direction is made, this proxy will be voted “FOR” all of the director nominees, “FOR” Proposals 2 and 3 and “1 YEAR” for Proposal 4.

Continued and to be signed on reverse side

V.1.1



proxycard3.jpg
proxycard4.jpg