Business Context and Reporting Period
This Form 8-K Current Report was filed by Flowserve Corporation on January 6, 2020, regarding events occurring on January 8, 2020. The filing discloses the appointment of a new Chief Financial Officer and the departure of the interim CFO.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. The document focuses exclusively on executive compensation and personnel changes.
Material Changes
The primary material change is the leadership transition in the finance function:
- Appointment: Amy B. Schwetz was named Senior Vice President and Chief Financial Officer, effective February 24, 2020.
- Departure: John E. (Jay) Roueche, III will step down as interim CFO on the effective date and resume his role as Vice President, Treasurer, and Investor Relations.
Management Commentary and Compensation Details
Ms. Schwetz joins from Peabody Energy Corporation, where she served as Executive Vice President and CFO since 2015. Her compensation package includes:
- Base Salary: $650,000 annually.
- Annual Incentive: Target award of 75% of base salary.
- Long-Term Incentive: Target award of $1,550,000.
- Sign-on Bonus: $250,000 cash (subject to repayment if employment ends within one year).
- Restricted Stock: One-time award valued at $750,000, vesting ratably over three years.
- Make-Whole Bonus: One-time cash bonus of $500,000.
The filing states there are no family relationships with directors or officers and no undisclosed transactions involving Ms. Schwetz.
Investor Verification Checklist
- Verify the effective date of the CFO transition (February 24, 2020).
- Review the attached press release (Exhibit 99.1) for additional strategic context.
- Confirm the repayment terms of the $250,000 sign-on bonus in the employment agreement.
- Check subsequent filings for the vesting schedule details of the $750,000 restricted stock award.