The chief executive of chemical giant Tronox has taken a leave of absence after becoming embroiled in an insider trading investigation that has seen charges brought.
Jeffry N Quinn, who also sat as chairman of the huge titanium dioxide business with its largest European operation on the South Humber Bank, alerted the board on Christmas Eve.
He has been referenced in a Securities and Exchange Commission civil complaint and related criminal complaint in the US.
It relates to share sales in Ferro Corporation in February and March of 2016. Mr Quinn served as a director of Ferro from May 2013 through to August 2016, while also a director of Tronox.
Tronox, which acquired Cristal after a long battle with the market authorities Stateside, is not part of the investigation in which Mr Quinn is not the defendant.
John D Romano, chief commercial and strategy officer, and Jean-François Turgeon, executive vice president and chief operating officer, have been appointed co-chief executives in the interim. Ilan Kaufthal, lead independent director, has been elected chairman on the same basis.
Mr Kaufthal said: “As we closely monitor developments with respect to the complaints, the board has determined that Mr Quinn's leave of absence and the appointment of John D Romano and Jean-François Turgeon as co-CEOs on an interim basis are in the best interests of Tronox and its stakeholders.
"The board's focus on maintaining a robust governance and succession planning process enabled our swift response to ensure the company continues to execute on its long-term strategic plan. Mr Romano and Mr Turgeon collaborated successfully in leading the company through Tronox's transformation, including the Cristal integration and the challenges presented by the pandemic. With over six decades of combined leadership and operational experience in both the pigment and mining industries, including many years at Tronox, Mr Romano and Mr Turgeon have strong records of delivering results and appreciation for our culture. We are confident that together, supported by a deep bench of talented senior management, we will continue to build on the significant momentum Tronox is currently experiencing in the market."
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Mr Quinn became a Tronox director in 2011, and was appointed president and chief executive in December 2017 following the tragic loss of Thomas Casey to cancer.
Mr Romano said: “Over the last year, Tronox has demonstrated resiliency in meeting ongoing challenges. We remain confident that our vertical integration strategy will continue to provide a competitive advantage, allowing Tronox to best serve our global customer base during this pivotal time in the TiO2 industry as we close out a strong fourth quarter. Jean-François and I appreciate the board's confidence as we work closely to ensure a seamless transition for all our stakeholders."
The 102-year-old Ferro Corporation is an American producer of technology-based performance materials for manufacturers, focusing on performance colours and glass; pigments, powders, and oxides; porcelain enamel; and tile coatings systems.
Charges laid relate to a tip-off that the company was about to be acquired by private equity firm Apollo Global Management, which led to a $1 million profit from purchases of 150,000 shares prior to the announcement.
Mr Turgeon added: "As we continue to operate our business with a high level of excellence, we remain focused on meeting the needs of our customers and driving financial results. We have demonstrated our unwavering commitment to delivering safe, quality, low-cost, sustainable tons for our customers. John and I are confident Tronox is well positioned to capitalise on the future market recovery."