Chemours’ audit committee determined that the failure resulted from inadequate controls and procedures regarding the evaluation and escalation of hotline reports and poor judgment by those who handle reports to it. | DBT FILE PHOTO
WILMINGTON — Chemours’ internal audit has found that three executives, including CEO Mark Newman, violated the company’s ethics code to alter the appearance of cash flow targets dating back to the end of 2022.
The company, famed for making Teflon, announced late Wednesday night that the audit has found a lack of transparency between senior management and the board of directors on payments and receivables, which affected the target Chemours forecast to have cash on hand.
Cash flow targets is a key metric to determine potential bonuses for key executives. Chemours’ most recent proxy statement shows that Newman earned $7.6 million in 2022, with $1 million in incentives.
Newman and Chief Financial Officer Jonathan Lock and Principal Accounting Officer Carmela Wisel were placed on administrative leave on Feb. 29 pending the audit.
The audit, which was presented to the board on March 5, found that the three top executives worked to delay payments…
