Last week, Raj Kumar announced his resignation as CFO of Dril-Quip. Today, it was announced that he will become the CFO at Houston-based Kirby Corporation.
Not only does Kirby have a bigger market capitalization ($2.9 billion versus $925 million for Dril-Quip), it has $1.5 billion of debt, whereas Dril-Quip has a large net cash position. That should appeal to Mr. Kumar, who has a treasury background.
Kirby operates domestic barges and other marine transportation services. It traditionally also had a small business that providing service and parts for engines, transmissions and gears.
In September 2017, it massively expanded the service business by paying $758 million to buy Stewart & Stephenson. That turned out to be a disaster. Last year it wrote off $553 million in goodwill and intangible assets. Though Kirby managed to bungle the writedown!
Current CFO Bill Harvey, who joined the company in May 2018, announced back in July that he will be retiring in early 2022.
Mr. Kumar will receive a base salary of $500,000. He also receive a one-time restricted stock grant worth $1 million that will vest over two years.