Freight broker Landstar System announced Monday a succession plan for the dual role of president and CEO as Jim Gattoni, who holds the positions currently, is retiring after nearly three decades with the company.
Landstar’s (NASDAQ: LSTR) board of directors has chosen Frank Lonegro, current CFO at Beacon (NASDAQ: BECN), the largest publicly traded roofing and building supply company in the U.S. and Canada, as its new chief effective Feb. 2.
Gattoni will continue to lead the company through the fourth-quarter earnings call, which is scheduled for Feb. 1. He will then step down from his current duties and as a board director to assume the role of special adviser to the CEO. He is expected to retire from the advisory position in July.
The company’s new chief has been working outside of the industry most recently but has ties to the transportation sector.
In addition to working for the construction supply company, Lonegro spent nearly 20 years at CSX (NASDAQ: CSX), which like Landstar is headquartered in Jacksonville, Florida. Lonegro was the CFO at CSX from 2015 to 2019. He also held leadership roles in service design and maintenance and repair for the railroad.
“Frank’s broad financial, operational and technology leadership at large, publicly traded organizations make for an outstanding fit at Landstar,” said Diana Murphy, Landstar’s chairman. “The board is delighted to welcome Frank and his impressive record of achievement to Landstar.”
Gattoni joined Landstar in 1995 as corporate controller. He was promoted to CFO in 2007 and added the title of president in 2014. Later that year, he took over as CEO when former company head Henry Gerkens retired. Since Gattoni took the the helm, Landstar’s revenue has more than doubled to $7.5 billion and its net income has tripled ($431 million in 2022).
“On behalf of the independent members of the board, I also want to express tremendous appreciation to Jim for his leadership of Landstar and partnership with all of us,” Murphy said.
“Landstar has greatly benefited from Jim’s many contributions over an almost 30-year career with the company,” stated David Bannister, Landstar board member and head of the compensation committee. “His passion for the independent business owners who make up the Landstar network has played an integral part in driving Landstar forward as a technology-driven industry leader. We wish Jim all the best in his retirement.”
Lonegro will also have a spot on Landstar’s board.
Nearly 8% of Landstar’s annual revenue comes from the shipment of building products.
“Frank is an experienced, solutions-oriented leader. He understands the fast-paced freight transportation industry, the critical importance of a safety-first culture and our commitment to the long-term success of Landstar agents, BCOs [business capacity owners] and other third-party capacity providers to continue to drive our growth,” Gattoni said.
“I am honored to follow in Jim’s footsteps and to further build on the company’s tremendous legacy of success,” Lonegro said. “It is my privilege to guide Landstar into the future as we write the next chapters in Landstar’s impressive story.”
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