March 17, 2014

B&W’S SALOMONE TO RETIRE, BUT STAY ON AS HEAD OF COMPANY’S Y-12/PANTEX BID

By ExchangeMonitor

Babcock & Wilcox Chief Operating Officer Mary Pat Salomone is retiring at the end of June, but she will stay with the company to head up the team bidding on the National Nuclear Security Administration’s combined Y-12/Pantex contract, B&W said yesterday. B&W-led Nuclear Production Partners (NP2), LLC, which includes URS, Northrop Grumman and Honeywell, successfully protested the NNSA’s selection of Bechtel-led Consolidated Nuclear Security, though the NNSA has not said whether it will follow the Government Accountability’s recommendation to reopen the procurement. A third team led by Jacobs and Fluor also protested the award. “We have been planning for Mary Pat to assume the NP2 role for a while,” B&W President and Chief Executive Officer Jim Ferland said in a statement, “and therefore are well-positioned for a smooth transition.”

Ferland said B&W will not hire a new chief operating officer to replace Salomone, who took the newly created position in early 2010 as B&W was spun off from parent company McDermott International. Ferland said each of the company’s business units, including its Technical Services Group, will now report to him. As part of her separation agreement from the company, Salomone will receive accelerated vesting on stock options and $1.2 million in compensation, which the company said in a filing with the Securities and Exchange Commission was equivalent to one year’s worth of salary and target bonus. The compensation will be paid in two chunks—$325,000 and $924,000. Salomone would not immediately receive the $924,000 and accelerated vesting on stock options if Nuclear Production Partners is awarded the Y-12/Pantex contract, the company said. If that does occur, Salomone will enter into an agreement to serve as Nuclear Production Partners’ CEO for two years, the company said.

Comments are closed.