HOUSTON and LONDON, Sept. 13, 2013 /PRNewswire/ -- LyondellBasell (NYSE: LYB) today announced that it has entered into a new contract with CEO James L. Gallogly and taken other steps to ensure continued strong leadership and executive continuity at the company.
"The company has been transformed in recent years under the talented leadership team that Jim has assembled and led," said Robert G. Gwin, chairman of the supervisory board. "The company emerged from bankruptcy in May 2010 and is now a member of the S&P 500 with an investment-grade credit rating. It has advanced every facet of its business goals, including safe and reliable operations, strict cost control, asset refurbishments and a significant capital growth program," Gwin said. Total shareholder return over this period, assuming dividends were reinvested into the stock, has been approximately 400 percent.
Gallogly's new contract will become effective May 14, 2014. Gallogly's original employment agreement was entered into in May 2009 when he joined the company during its bankruptcy proceedings and tied most of his realizable compensation to equity awards. Those awards, pursuant to their original terms, will largely be fully vested in May 2014. In order to provide continuity of management and to ensure continued pay-for-performance, the supervisory board determined that a new agreement with Gallogly was in the best interest of the company and its stakeholders. The majority of Gallogly's potential compensation under the new agreement will be tied to company performance and the creation of shareholder value.
In recognition of the contributions of the executive team to the success of the company, LyondellBasell also announced the promotion of two senior executives to executive vice president and the formation of a six-member management committee.
Promoted to executive vice president are Bhavesh V. (Bob) Patel, senior vice president of Olefins and Polyolefins (O&P) – Europe, Asia, International and Technology; and Timothy D. (Tim) Roberts, senior vice president of Olefins and Polyolefins (O&P) – Americas. They will assume responsibility for manufacturing operations in their respective regions. The promotions, which will be effective Oct. 1, are in recognition of their contributions to the success of the company and its continued excellent performance. "Bob and Tim are seasoned business leaders who have led the company's largest business segments and are poised to assume greater responsibilities as the company continues to grow and prosper," Gallogly said.
The six-member management committee is comprised of:
- James L. Gallogly, CEO and chairman of the management committee
- Craig B. Glidden, executive vice president and chief legal officer
- Karyn F. Ovelmen, executive vice president and chief financial officer
- Bhavesh V. Patel, executive vice president – O&P - EAI and Technology
- Patrick Quarles, senior vice president – Intermediates and Derivatives
- Timothy D. Roberts, executive vice president – O&P – Americas
Members of the management committee will continue in their current operational and functional roles, and will continue to be part of the company's leadership team, which is currently comprised of 13 executives representing a cross-section of the company.
Under LyondellBasell's two-tiered board structure, the management board is responsible for the day-to-day operations of the business and the supervisory board is charged with the oversight of the management board. Gallogly is currently the sole member of the management board. The management committee will support the management board in the discharge of its duties. At the company's annual general meeting in May 2014 it is anticipated that shareholders will be asked to vote in favor of expanding the management board to include the management committee members.
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyondellbasell.com) manufactures products at 58 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.
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SOURCE LyondellBasell Industries