- Signs for push-out forces
- After about three years on the job
- Laud, praise, thanks and good wishes for Ferraioli
- Mark Sopp takes over
(management-change.com) — Houston, Texas, December 13, 2016 — Brian Ferraioli, finance chief of KBR, leaves. As announced by KBR, Inc. in a news release and in a regulatory filing published on Tuesday, December 13, 2016, Brian K. Ferraioli leaves the post as Chief Financial Officer at the engineering company in a surprising move after about three years on the job, effective during the first quarter of 2017.
Ferraioli’s duties are taken over by Mark Sopp, a former Chief Financial Officer at Leidos Holdings.
The fact that Ferraioli’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
In general, an outsider doesn’t have the constraints of an insider when it comes to leading painful changes or making unpopular decisions.
“To spend more time with family”
Ferraioli’s move is explained as follows. KBR said: “Brian K. Ferraioli has decided to retire from KBR, Inc. … as Executive Vice President and Chief Financial Officer during the first quarter of 2017 to spend more time with family.”
The phrase “to spend more time with family” is often used in corporate announcements and opens the door to speculation.
Precise information about the future plans of Ferraioli was not immediately available.
Share price decline
The change follows a decline in the share price of KBR, Inc. since November 2013.
Chaired by Loren K. Carroll
KBR, Inc. is chaired by Loren K. Carroll.
Carroll joined the KBR Board in April 2007.
Stuart J. B. Bradie serves as CEO of KBR, Inc. Bradie assumed the role of President and Chief Executive Officer for KBR, Inc., on June 2, 2014.
On the job as CFO since 2013
Ferraioli has been the Chief Financial Officer and Executive Vice President of KBR, Inc. since October 28, 2013.
Prior to joining KBR, Ferraioli held the position of Executive Vice President and Chief Financial Officer at The Shaw Group in Baton Rouge, Louisiana until its sale in early 2013.
Before joining Shaw in July 2007, he served in numerous roles at Foster Wheeler AG in Clinton, New Jersey.
Ferraioli began his Foster Wheeler career in 1979 as an internal auditor and rose through the corporate ranks, ultimately becoming a Vice President and Corporate Controller.
Ferraioli holds a Master of Business Administration with honors from Columbia University and a Bachelor of Science in Accounting from Seton Hall University.
Ferraioli is a member of the Board of Directors of The Babcock & Wilcox Co. in Charlotte, North Carolina and is the Chair of their Audit Committee.
Ferraioli and Sopp will work closely together to ensure a managed and smooth transition for KBR’s financial organization.
Signs for push-out forces
It is not completely certain what forces eventually triggered Brian K. Ferraioli’s move.
The Push-out Score™ determined by management-change.com suggests that push-out forces may have contributed to the management change.
Read the full story in the management-change.com report 47.2016 ($).