Charles Njuguna, CFO of Deep Down, has been appointed CEO, replacing co-founder Ronald Smith, who is stepping down. The press release made no mention of a replacement CFO.
Deep Down focuses on complex deepwater oil and gas production system technologies and support services. It has its head office in Crosby, TX. It trades over-the-counter and has a market capitalization of $8 million.
Deep Down is notable for two things. One, it hasn’t made an operating profit since 2007. Two, it has been run for the benefit of executive management, rather than external shareholders, though this appears to be changing.
Mr Njuguna joined Deep Down in 2012. In 2015, he was appointed Business Manager to oversee all commercial activities and was appointed CFO in 2017. No details of Mr Njuguna’s new compensation were disclosed. As CFO, he has a salary of $250,000.
Smith consulting contract
Mr Smith is resigning, effective September 1, 2019. However, he has entered a consultancy contract that will pay him $41,769.80 a month from September to December 2019. Then from January 2020 through December 2021, he will be paid $15,000 a month.
In addition to his annual salary of $494,000 Mr Smith was also paid $19,291 for vacation not taken in 2018. Deep Down is the only company I’ve seen do this (Mr Njuguna was also paid $14,423 for vacation not taken in 2018). Mr Smith also received a cash bonus of $13,000 for time spent outside the country on a customer project.
Smith’s wife also has a consulting contract
Mr Smith’s spouse and co-founder of the company, Mary Budrunas, was part of executive management until she retired in December 2016. However she entered into a 3-year agreement that pays her $17,500 per month for up to 60 hours of consulting a month. She remained on the Board of Directors until April 2019.
Two new independent Directors, David Douglas and Neal Goldman were appointed in April 2019, replacing Ms Budrunas and another director who had been on the Board since 2013.