Chemours names Shane Hostetter as new CFO following executives’ code of ethics violations
Chemours, the Deleware-based chemistry company, named Shane Hostetter as the company’s new permanent CFO. In a press release, the company said Hostetter would assume the finance chief position effective July 1. In this capacity, he will be leading finance, investor relations, corporate development, strategy and enterprise risk management, per the release.
Shane Hostetter
Source: Chemours
Hostetter will receive a base salary of $600,000 and a $50,000 signing bonus, and will be eligible for an annual bonus with a target of 75% of his base pay, The Wall Street Journal reported. Hostetter previously served as finance chief of Quaker Houghton, where he held the role since 2021. Prior, he held numerous senior-level positions at the industrial fluids processor.
Matt Abbott, who had been named interim CFO in February while the company searched for a replacement, is to resume his prior role as senior VP, chief enterprise transformation, which he held before the interim appointment.
While the passing of the baton is standard for organizations who are searching for a new CFO, the nature of this transition has been unusual, as CFO has reported. Abbott was originally named interim CFO because multiple company executives — former CFO Jonathan Lock, former CEO Mark Newman, and principal accounting officer Camela Wisel — were placed on administrative leave in the aftermath of reported code of ethics violations.
Lock resigned on April 23, according to an SEC filing. He did not receive severance, according to the company. Newman, who resigned in March, was replaced on an interim basis by Denise Dignam. Dignam was ultimately named as permanent CEO in April.
The code of ethics violations stemmed from the three executives relating to “promot[ion of] full, fair, accurate, timely and understandable disclosure,” according to a company release. An internal review, initially triggered by an anonymous report to the company’s ethics hotline, found the executives had manipulated cash flows in the fourth quarter of 2023 and the first quarter of 2024 by delaying vendor payments due in Q4 while accelerating receivables collections.
The net result was an increase in Q4 cash flows, followed by a corresponding decrease in Q1 of this year. The investigation found they “engaged in these efforts in part to meet free cash flow targets that the company had communicated publicly, and which also would be part of a key metric for determining incentive compensation.”
Chemours stated it would examine material weaknesses in its internal controls, including the effectiveness of the “tone at the top,” as well as the components of the COSO internal control framework. The company said the internal review did not result in any material misstatements of financial statements or disclosures.
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