Babcock & Wilcox Enterprises, Inc. (NYSE:BW) has announced the termination of a consulting agreement with BRPI Executive Consulting, LLC, as well as the initiation of a new agreement directly engaging their CEO Kenny Young. The changes took effect on Monday, September 20, 2024, as per a recent 8-K filing with the SEC.
The prior arrangement with BRPI, an affiliate of B. Riley Financial, Inc., was set to expire on December 31, 2028, but was concluded early by mutual consent, waiving advance notice requirements and any rights regarding the solicitation of Mr. Young's services by the company.
Simultaneously, Babcock & Wilcox entered into an Independent Contractor Agreement with OpenSky, LLC, a company wholly owned by Mr. Young. This contract ensures his continued leadership as CEO through December 31, 2028, unless terminated earlier by either party with a 30-day notice. The company will compensate OpenSky at an annual rate of $800,000. Additionally, if Mr. Young's services are terminated by the company before the end date, barring a breach by Mr. Young, the consulting fee will continue to be paid until the original contract termination date.
A signing bonus of $800,000 is included in the new agreement, with a stipulation for repayment on a pro-rata basis if Mr. Young's services end within three years, either due to the company terminating for cause or voluntary resignation by Mr. Young.
This move comes as Babcock & Wilcox continues to solidify its leadership structure. The Ohio-based company, incorporated in Delaware, specializes in heating equipment, with its common stock, senior notes, and preferred stock traded on the New York Stock Exchange under the symbols BW, BWSN, BWNB, and BW PRA, respectively.
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