At a Glance

  • Global chemicals company Chemours named a new finance chief on Wednesday, succeeding former CFO Jonathan Lock, who departed recently after an internal investigation found unethical financial conduct involving him and two other executives.
  • Shane Hostetter, who previously served as CFO of Quaker Houghton, another global chemicals company, will assume Chemours' top finance position on July 1,according to a press release。
  • "With more than 20 years of experience across all aspects of finance and a deep understanding of the chemical industry, Shane is uniquely positioned to drive long-term shareholder value," said Denise Dignam, who recently became the company's CEO, in the press release.

In Depth

In his new role, Hostetter, 43, will receive an annual base salary of $600,000, a signing bonus of $50,000, an annual target bonus opportunity equal to 75% of his annual base salary, and a long-term incentive target opportunity of $1 million,according to a securities filing by Chemours。

With Hostetter's appointment, Matthew Abbott, who had been serving as interim CFO since February, will resume his previous role as chief enterprise transformation officer, according to Wednesday's press release.

Wilmington, Delaware-based Chemours said in February that it had placed three executives—Lock, then-CEO Mark Newman, and then-controller Camela Wisel—on leavepending a review of financial reporting issues that were not fully disclosed. Meanwhile, Dignam, who previously led Chemours' titanium technologies division, was named interim CEO, and Abbott was named interim CFO.

The company disclosed more details in early March, saying the investigation found that the three executivesviolated the company's code of ethicsby taking improper measures to meet cash flow targets, a key metric in determining executive bonuses.

Specifically, the review determined that these executives took steps in the fourth quarter of 2023 to delay certain payments originally scheduled for the fourth quarter of 2023 to suppliers until the first quarter of 2024. They also took steps to accelerate receivables originally due in the first quarter of 2024 into the fourth quarter of 2023, the company said at the time.

In late March, the company announced that after Newman's resignation,Dignam was named permanent CEO. Lock'sresignation followed。

Chemours disclosed in its10-K securities filingsubmitted in March that it is cooperating with information requests from the U.S. Securities and Exchange Commission (SEC) and the U.S. Attorney's Office for the Southern District of New York regarding the results of its internal investigation. The company also reported that it is facing two related class-action lawsuits.

"These matters could result in additional costs and liabilities for us, which could have a material impact on our operating results, financial condition, and cash flows," the filing stated.