Valaris, the offshore drilling contractor that exited bankruptcy proceedings in April 2021, has changed out its CEO and CFO. Thomas Burke, CEO since April 2019, has stepped down, to be replaced by interim CEO Anton Dibowitz. Jon Baksht, CFO since June 2019, is replaced by interim CFO Darin Gibbins.
Valaris has its corporate offices in London, though most of its management are (or were) based in Houston. The company was formerly known as Ensco. It acquired Pride International in 2011 and Rowan in 2019, at which point it changed its name to Valaris.
Valaris entered Chapter 11 bankruptcy in August 2020 and exited with $7.1 billion of debt converted to equity. It currently has a market capitalization of $1.9 billion.
Mr. Burke had a base salary of $855,000. He will receive a severance of 2 times base salary ($1.7 million), plus 2 times average bonus or target bonus (110% of base or $1.88 million), plus a pro-rated target bonus for 2021 ($0.6 million). That’s $4.2 million in total.
Mr. Burke was the CEO of Rowan, prior to its merger with Ensco. After he was appointed CEO in April 2019, he received a cash bonus in 2019 of $3.9 million, including $3.0 million as a result of meeting cost reduction targets following the merger. From April 2020 until June 2021, quarterly cash bonuses were paid out in lieu of stock options. As a result Mr. Burke earned another $4.7 million for 2020. The 2021 bonuses paid out have not yet been disclosed.
The company also incurred $0.4 million in overseas allowances in 2019 for Mr. Burke in respect of his move from Houston to London. That includes housing, child tuition and tax equalization.
Mr. Burke will continue to serve on the Board of Managers of Saudi Aramco Rowan Offshore Drilling, the company’s 50/50 joint venture with Saudi Aramco. He will receive an annual retainer of $150,00 for this role.
Interim CEO Anton Dibowitz currently serves on the newly-constituted Board of Directors and was formerly the CEO of Seadrill.
Mr. Baksht had a base salary of $550,000. He will receive a severance of 2 times base salary ($1.1 million), plus 2 times target annual bonus (85% of base or $935,000), plus a pro-rated target bonus for 2021 ($312,000). That’s $2.35 million.
Mr. Baksht received cash bonuses of $3 million in 2020. The company also incurred $0.4 million in overseas allowances for Mr. Baksht in 2019 as well.
Interim CFO Darin Gibbins joined Rowan in 2006 and is currently the VP of Investor Relations and Treasurer. He will receive a annual salary of $375,000.