BWX Technologies said Thursday that Executive Chairman of the Board John Fees would become non-executive chairman as of May 4, 2018.
The Lynchburg, Va.-based Department of Energy contractor noted also in a filing with the U.S. Securities and Exchange Commission that it has entered into a “transition agreement” that spells out financial compensation for Fees through the that date.
Fees will be paid $50,000 per month in base salary. In addition, he will remain eligible for certain 2017 and 2018 incentive bonuses along with select employee benefit plans.
Fees had been chairman since the company spun off from McDermott International in 2010. Fees had served as CEO of McDermott for about two years prior to the spinoff. He spent 31 years at McDermott, including a stint as CEO of what was then the Babcock & Wilcox subsidiary.
BWXT also said Robert W. Goldman won’t stand for re-election as lead independent director and chairman of BWXT’s governance committee. Goldman will retire at the company’s annual shareholders meeting in 2018.
The BWXT board has appointed James Jaska to chair the governance committee, effective Jan. 1, 2018. Goldman will continue as lead independent director until a successor has been appointed.
BWXT is a leading contractor for the Department of Energy’s nuclear cleanup office and the agency’s semiautonomous National Nuclear Security Administration, with roles at the Los Alamos National Laboratory in New Mexico, Portsmouth Gaseous Diffusion plant, and other sites.
In October, a BWXT-led corporate partnership was awarded the $4.7 billion contract for liquid waste management at DOE’s Savannah River Site in South Carolina. That contract award is currently under protest by two losing bidder teams at the Government Accountability Office.
In its latest earnings release, BWXT reported third-quarter 2017 revenue of $419 million, a 10.5 percent increase from $380 million in the third quarter of 2016. The company’s total costs and expenses were $349.3 million, compared to $322.1 million in the third quarter of 2016. Management at the time said the company would continue to pursue new DOE business, singling out the Los Alamos management and operations contract.
