Target Hospitality, based in The Woodlands, has promoted Jason Vlacich to be its CFO. He replaces Eric Kalamaras, effective immediately. The company said it will approve terms in connection with Mr Kalamaras’ departure at a later date.
Mr. Vlacich joined the company in October 2018 as its Chief Accounting Officer. He started his career with PricewaterhouseCoopers. Mr. Vlacich will receive a base salary of $410,000.
The business originally provided rental modular accommodation to the US fields. It still does that, but almost 75% of its revenue and 90% of its profits comes from government contracts. The biggest is providing housing for unaccompanied minors at a Children’s Center in Pecos in west Texas. Target’s contract is with Endeavors, a non-profit organization. In turn, Endeavors has received a $580 million contract from the US government.
Target has a long history of operating government contracts. It provided logistical services at the 1996 Olympics in Atlanta and operated a cruise ship to support relief efforts in the aftermath of Hurricane Katrina in 2005.
Target was taken public by a SPAC in March 2019 and now has a market cap of $939 million. Mr. Kalamaras joined as CFO in September 2019.
It is unclear why the company is stating that severance will be agreed later as the employment contract that Mr. Kalamaras signed is very clear. The contract, amended in January 2022, states that Mr. Kalamaras will receive 1x the sum of annual base salary ($427,450) plus target bonus ($427,450). In addition, he will receive a pro-rated bonus for 2024 (plus his 2023 bonus that, presumably, has not yet been paid).