Knight-Swift Transportation Holdings’ former CEO David Jackson will receive a series of payments as part of a severance package equal to $5.5 million, according to a securities filing Thursday.
The payments involve a lump-sum payment of $1.85 million, another $1.85 million paid over two years in equal installments, and a third payment of $1.8 million related to continuing health benefits, adhering to restrictive covenants and for half of his 2024 bonus.
Jackson stepped down as CEO and a member of Knight-Swift’s board on Feb. 26 in a move that “was not the result of any disagreement with the Company on any matter relating to operations, policies or practices,” according to the company.
As part of the transition, Jackson agreed to release the company from claims, helping shield the company and its affiliates.
Restrictive covenants also affect Jackson in matters regarding non-competition, non-disclosure and non-disparagement, providing additional protection for Knight-Swift.
A severance agreement form for executives from 2016 listed a one-year period for non-competition.
The company will provide the full text of Jackson’s severance agreement as part of its Q1 earnings report with the Securities and Exchange Commission.
