Chemours CFO on PFAS, Tariffs, and Internal Control Remediation
Since becoming Chemours CFO in July 2024, Shane Hostetter has navigated supply chain volatility from tariffs, cost cuts, and Middle East conflicts. In the interview, he discussed progress on the Pathway to Thrive strategy, the financial implications of the New Jersey PFAS settlement, the benefits of tariffs for the titanium dioxide business, and the effectiveness of the company's internal control remediation.
Since becoming CFO of global chemical company Chemours in July 2024, Shane Hostetter has had an unusually busy two years: he has dealt with tariff shocks, cost-cutting programs, and the impact of the recent Iran war on the company's supply chain.
Hostetter is a certified public accountant who began his career in audit at PricewaterhouseCoopers. Before joining Chemours, headquartered in Wilmington, Delaware, he spent 13 years at Quaker Chemical in various roles, including CFO.
He took office at a time when the company and its management were facing challenges. His predecessor, Jonathan Lock, resigned after an internal investigation found that Lock, along with the then-CEO and controller, had engaged in improper financial practices, partly to meet free cash flow targets.resigned from the company. The findings of the investigation were disclosed in company announcements.
In email responses, Hostetter answered CFO Dive's questions about the company's efforts to address internal control deficiencies, his role in rebuilding trust, and his views on tariffs and legacy environmental claims.This Q&A has been edited for brevity and clarity.
About the Pathway to Thrive cost-cutting program
CFO Dive:The multi-year Pathway to Thrive is a restructuring/transformation strategy aimed at reducing Chemours' costs by $250 million between 2024 and 2027. Are you still on track to achieve these cost targets next year? As CFO, what role do you play in the program?
Shane Hostetter:The Pathway to Thrive strategy is about more than just costs and turnaround. Fundamentally, it aims to strengthen the company's overall foundation—lowering our cost structure, improving how we operate, driving growth through core initiatives, and optimizing and strengthening our portfolio to achieve long-term success and performance through the cycle.
Cost optimization is a clear priority across our business segments. We remain on track to achieve the $250 million in cost savings through Pathway to Thrive, and my role as CFO is to ensure we have the operational cadence, governance, and financial discipline to translate strategy into measurable results. That discipline is reflected in how we approach 2026: we reaffirmed our full-year adjusted EBITDA guidance of $800 million to $900 million, representing roughly 10% growth year-over-year at the midpoint, while we focus on improving free cash flow conversion and reducing leverage as we execute the strategy.
On PFAS environmental liabilities and the New Jersey settlement
CFO Dive:One concern for investors and analysts regarding Chemours is the company's environmental liabilities and the potential for high-cost settlements related to its legacy PFAS, sometimes called forever chemicals. Why do you believe the company's settlement with New Jersey last year was an important financial step?
Shane Hostetter:Chemours has been and continues to be focused on advocating for science-based regulation and operating responsibly at our sites. We are committed to responsible production and have reduced process emissions of fluoroorganic chemicalsby 76%, and we aim to achieve 99% or greater reduction by 2030. We publish our progress annually in our sustainability report.
The New Jersey agreement, announced jointly with DuPont and Corteva, comprehensively resolves all pending environmental claims in the state, including those related to PFAS, covering four current and former operating sites as well as statewide PFAS claims. The total settlement is $875 million, payable over 25 years, and under our existing cost-sharing agreements, Chemours' share is approximately $250 million on a pre-tax net present value basis.
Importantly, subject to court approval of the consent order, DuPont and Corteva's purchase of Chemours' rights to $150 million in insurance proceeds related to PFAS claims will help fund our share and improve the financial profile of the settlement to an obligation of approximately $85 million over 25 years, with no payments due in the first five years.
The New Jersey settlement is a meaningful step forward in our ongoing efforts to resolve legacy PFAS and other environmental claims overall. It demonstrates our commitment to addressing legacy issues in a disciplined manner, in a financially responsible way, and in the best interests of the company, shareholders, and other stakeholders.
On the impact of tariffs
CFO Dive:Although there has been much discussion over the past year or so about companies being hit by tariffs, Chemours has benefited from them. Can you explain how some of your businesses have seen tariffs as a tailwind, and point out any areas where tariffs pose a headwind?
Shane Hostetter:Trade dynamics affect different parts of our portfolio in different ways, and we are not immune to the broader impact of tariffs on global markets. That said, in our Titanium Technologies business, Section 302 tariffs on titanium dioxide (TiO₂), which predate recent policy developments, have helped create a more level playing field for U.S. producers and have opened up volumes in markets where tariffs have been implemented. Given the economic deterrent effect of these tariffs, they have limited imports from foreign production.
Outside the U.S., there are other tariffs that continue to create more equitable trading zones, which we believe is essential to supporting fair competition and deterring countries that might otherwise attempt to compete with uneconomic pricing.
On supply chain volatility from the Middle East conflict
CFO Dive:The Iran war has disrupted supply chains and global flows of many raw materials. Since the Middle East conflict began in February, what steps have you taken to adapt to volatility in global markets?
Shane Hostetter:We manage volatility by maintaining close connections with suppliers and customers, actively managing raw material and logistics risks, and building resilience through flexible sourcing and operational planning. Additionally, when needed, we have successfully coordinated pricing actions to offset the overall inflationary environment from current supply chain disruptions.
On internal control remediation and rebuilding trust
CFO Dive:You joined Chemours during a challenging time, following an internal investigation that found three former executives violated the company's code of conduct by taking improper measures to meet cash flow targets. Looking back on your nearly two years at the company, as head of finance, what steps have you taken to strengthen internal controls? Do you believe the company's remediation efforts are sufficient to ensure future compliance with ethical policies?
Shane Hostetter:I have spent most of my career in the chemical industry, and what attracted me to Chemours was the opportunity to help drive the business forward—with strong performance, robust controls, and a culture that earns trust. I joined Chemours at a time when strengthening controls and rebuilding trust were key priorities, and I take that responsibility seriously.
By the end of 2024, we remediated all four identified material weaknesses in internal controls and continue to strengthen our control environment and governance practices. For me, this is about both systems and culture: maintaining strong processes, clear accountability, and reinforcing the tone that integrity is central to who we are and how we operate.
Working alongside our CEO Denise Dignam, my focus is on enabling the organization to create value through disciplined execution of strategy, and that starts with doing things the right way. As a leadership team, we are proud of the culture we have built—one that is aligned on strategic direction and guided by compliance and ethical values.
On the change he is most proud of
CFO Dive:What project or change you have initiated at Chemours are you most proud of?
Shane Hostetter:What I am most proud of is driving a mindset that challenges the status quo to create value. For example, just because we have "always done it this way" does not mean it is the best way forward. This mindset of continuous improvement is embodied daily through our Chemours Business System operating platform. Specifically, I have consistently pushed for the use of automation, process improvements, and, where possible, AI to save time from processes so that teams can focus on strategy. We have made great progress in applying AI in our daily work, and I am very excited about the future opportunities for the finance function and the company as a whole.