COVENANT LOGISTICS GROUP, INC. 8-K

What Happened

• On December 16, 2025 (8‑K filed December 22, 2025), Covenant Logistics Group’s Compensation Committee approved the "2026 Senior Executive Bonus Program," a short‑term cash incentive plan effective January 1, 2026.
• Named executive officer bonus targets are set as a percentage of year‑end annualized base salary: David R. Parker 100%, M. Paul Bunn 100%, James S. Grant 70%, Dustin Koehl 60%, and Joey Ballard 60%.
• Under the program, executives can earn up to 150% of their bonus target for meeting certain adjusted earnings‑per‑share (adjusted EPS) goals and up to 25% of their bonus target for achieving specified strategic projects.

Key Details

• Approval date: December 16, 2025; Effective date: January 1, 2026.
• Bonus targets (as % of year‑end base salary): Parker 100%; Bunn 100%; Grant 70%; Koehl 60%; Ballard 60%.
• Performance multipliers: up to 150% payout tied to adjusted EPS goals; up to 25% payout tied to strategic projects.
• Plan type: short‑term cash incentive for named executive officers (no equity awards disclosed).

Why It Matters

• This program ties senior management pay to short‑term financial performance (adjusted EPS) and strategic initiatives, aligning incentives with company goals.
• If performance targets are met, the plan could increase cash compensation for executives (potentially up to the stated multipliers), which may affect cash outflows.
• Investors should note the change in executive compensation structure as it may influence management priorities and near‑term cash spending; the filing does not disclose dollar amounts or exact performance thresholds.