The three top executives at Chemours that were placed on administrative leave at the end of last month engaged in unethical activities to meet the company’s cash flow targets and, in turn, boost their compensation, the Delaware-based company has revealed in a press release on its website.
Playing loose with payments
An internal audit found that CEO Mark Newman, SVP and CFO Jonathan Lock, and VP, Controller and Principal Accounting Officer Camela Wise engaged in timing actions related to payables and receivables which positively affected free cash flow targets in the reporting period. Specifically, “the members of senior management . . . engaged in efforts in the fourth quarter of 2023 to delay payments to certain vendors that were originally due to be paid in the fourth quarter of 2023 until the first quarter of 2024, and to accelerate the collection of receivables into the fourth quarter of 2023 that were originally not due to be received until the first quarter of 2024,” notes the press release published on March 7. “The audit committee found that these individuals engaged in these efforts in part to meet free cash flow targets that the company had communicated publicly, and which…
