Weatherford CFO resigns after 6 months

Christian Garcia, the CFO of Weatherford International, has resigned. He will leave the company in early August after they have filed the second quarter report. The company will announce a successor at a later date.

Just a few days ago, Mr Garcia was named, along with COO Karl Blanchard as co-interim CEOs following the sudden departure of CEO Mark McCollum. Mr Garcia steps down from the office of the CEO role with immediate effect.

Mr Garcia only became the CFO in January. There’s no reason given for his departure, but it appears to be a personal decision he made. However he was close to Mr McCollum. Mr Garcia replaced Mr McCollum as Halliburton’s CFO during Halliburton’s proposed merger with Baker Hughes (2015-2016).

When Mr Garcia joined Weatherford, he received a sign-on bonus of $500,000. Under the terms of his employment contract, he will have to repay this.

Mr Garcia replaced Christoph Bausch as CFO. When Mr Bausch left in December 2019, he received termination pay of $3.6 million. Adding in Mr Bausch’s retention bonus and quarterly cash bonuses, he received $7.7 million in total cash payments in 2019.

Interim CEO

Karl Blanchard, interim CEO, will get an increased salary while performing those duties. As COO, he was making $700,000 a year. This was temporarily reduced by 20% due to the downturn caused by COVID-19. As interim CEO, his salary has been increased back up to $700,000. In addition he is eligible for monthly cash bonus payments of $370,296.

Non-Execs resign

It’s been a rough few days for Weatherford. In addition to the turmoil in the executive suites, three non-exec directors, who were nominated for re-election to the board, had to resign after failing to obtain the necessary votes at the Annual General Meeting of shareholders. This followed a campaign by an activist investor.

In addition to announcing the departure of Mr Garcia, Weatherford announced the appointment of a new non-exec director, Benjamin Duster. He serves on a number of boards as a non-exec director and is a corporate governance expert specializing in companies going through reorganizations.

SEC filing – Weatherford CFO resigns

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