Shares plummeted due to the news.

Kristen Kazarian, Managing Editor

March 1, 2024

1 Min Read
Chemours fires top execs
The company's CEO, CFO and Principal Accountant were let go.Image courtesy of ipopba / iStock via Getty Images

Chemours has placed CEO Mark Newman, its CFO and principal accounting officer on administrative leave, which led to dropped shares.

The chemical manufacturer said it was looking into potential "material weaknesses" in its financial reporting. The internal review also prompted the company to further delay the reporting of its Q4 and full-year results, without disclosing a new date. Earlier this month Chemours said it would delay its results to February 28.

"What we think many perceived as likely a relatively minor accounting hang-up two weeks ago now appears wider, longer, and with more ramifications than the market initially believed," said Barclays analyst Michael Leithead.

The weaknesses included the effectiveness of the "tone at the top" set by certain members of senior management, Chemours reportedly said on Wednesday. CFO Jonathan Lock and Principal Accounting Officer Camela Wisel were also placed on leave, the company said.

Shares were trading down 42% after briefly being halted for volatility. More than 11 million shares were traded within the first hour of trading, compared with its surpassing a short-term average of over a million shares, Reuters reported. The administrative leave of CEO, CFO and controller is a negative that is compounded by the delay in releasing year-end financials, brokerage Jefferies said.

Chemours named Denise Dignam, president of Chemours' Titanium Technologies (TT) business, as CEO. Also Matt Abbott, SVP & chief enterprise transformation officer, was named as CFO, both on an interim basis.

About the Author(s)

Kristen Kazarian

Managing Editor

Kristen Kazarian has been a writer and editor for more than three decades. She has worked at several consumer magazines and B2B publications in the fields of food and beverage, packaging, processing, women's interest, local news, health and nutrition, fashion and beauty, automotive, and computers.

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