Fluor is paying over $1.1 million in separation agreements to two recently departed executives, according to a filing with the Securities and Exchange Commission.
Executive Vice President for Systems and Supply Chain Ray Barnard is being paid a lump sump of $620,000, and Executive Vice President, Energy and Chemicals—Business Development and Strategy Jose Bustamante is receiving $525,000, according to the May 28 SEC filing.
Fluor has not reported any reasons for their departure.
The payouts are equal to their annual base salaries as of their May 22 departure date, Fluor said. Both will also be paid for any accrued time off and could be eligible for certain incentive awards earned during 2019. The incentive payments would occur after the Irving, Texas-based government contractor files its annual report for 2019 with the SEC, which evidently has not happened yet.
In addition, under a six-month consulting agreement, Bustamante can advise the company at a rate of $495 per hour starting May 25.
The employment separation also includes “customary” confidentiality clauses, along with an agreement to release Fluor from any legal claims.
Fluor previously disclosed the executives’ planned departures in an April filing with the SEC, which did not explicitly say if their exit was tied to cost cutting. The company indicated all senior managers were taking a temporary 20% cut in their base salaries as part of expense reductions due to the economic downturn sparked by the COVID-19 pandemic.
In February, the SEC began investigating the company’s financial reporting and accounting during 2019. Then, in April, the Justice Department issued a subpoena for certain documents relating to charges reported by the company during the second quarter of 2019.
Fluor manages environmental cleanup at the Department of Energy’s Idaho National Laboratory.It also leads joint ventures managing the DOE Savannah River Site in South Carolina and doing decontamination and decommissioning at the Portsmouth Site in Ohio.
