Chemours Execs Placed on Leave as Company Investigates ‘Material Weaknesses’ in Financials

Chemours and its shareholders find themselves in a pretty pickle, as three top executives, including CEO Mark Newman, have been placed on administrative leave and the Q4 and full year earnings report has been delayed. As the news broke on Feb. 29, Chemours shares plunged to a more than three-year low, reports Reuters.

To recap, Chemours’ Board of Directors at the end of last week placed Newman, Senior Vice President and Chief Financial Officer Jonathan Lock, and Vice President, Controller, and Principal Accounting Officer Camela Wisel on administrative leave. The “leave is pending the completion of an internal review . . . [and the evaluation] of one or more potential material weaknesses in internal controls over financial reporting as of Dec. 31, 2023,” the company said in a press release posted on its website. It also questions “the effectiveness of the ‘tone at the top’ set by certain members of senior management and information and communication.”

The company’s board has appointed Denise Dignam as interim CEO and Matt Abbott as interim chief financial officer (principal financial and accounting officer).

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

On Thursday, shares were trading down 42% at $16.58, Reuters reported. They began to rebound on Friday, recovering a 5.6% piece of the previous day’s selloff, according to Seeking Alpha.

The earnings report, initially scheduled for early February and then moved to Feb. 28, has been further delayed while Chemours gets its house in order. A new date has not been disclosed.