Chemours has no executive ‘attrition problem’ – CEO

HOUSTON (ICIS)–“We do not have an attrition problem,” the new CEO of Chemours, Denise Dignam, said during the company’s Q4 2023 earnings call on Thursday.

An analyst on the call asked about the company’s unusually high number of senior executive changes and departures.

Chemours has business leaders at many levels, with “deep experience”, and succession planning allowed it to quickly backfill key roles internally, Dignam responded.

“I know it’s hard for you to see this, but there is great stability in the organization,” she said.

Also, while Chemours does not want turbulence, “I do believe change is good”, she said.

“We have fundamentally changed how we operate at the top of this organization. We are now business-led, rather than corporate-led,” she said.

Dignam last month took over from Mark Newman, who was suspended – along with CFO Jonathan Lock and controller Camela Wisel – as the board started an investigation and review of financial reporting practices and internal controls.

Previous executive changes and departures include:

• Lock became CFO in mid-2023, succeeding Sameer Ralhan, who left.
• Ed Sparks resigned as the president of Titanium Technologies and Chemical Solutions in March 2023.
• Also in March 2023, Sheryl Telford resigned as the company’s chief sustainability officer.
• At the end of May 2023, Alisha Bellezza resigned as president, Thermal & Specialized Solutions (TSS), the business segment that makes fluorochemicals.
• Susan Kelliher, senior vice president, people, resigned at the end of September 2023.

INTERNAL CONTROLS
Mark Abbott, who currently serves as interim CFO, said on Thursday that Chemours’ review of internal controls identified “four material weaknesses” as of 31 December 2023.

Although the weaknesses did not result in any material misstatements of financial statements or disclosures, they did result in immaterial revisions to certain prior-period financial statements, he said.

Chemours is still in the process of implementing enhancements to its internal controls, he added.

“These actions will take time to implement, but we are already moving forward. We are fully committed to actions that not only address the weaknesses, but also strengthen our control environment going forward,” he said.

The investigation and review is expected to cost about $30 million.

Additional reporting by Al Greenwood

Thumbnail photo of Chemours’ CEO Denise Dignam; photo source: Chemours