Officials: Deltic Timber CFO fired
EL DORADO — Kenneth D. Mann, former vice president, finance and administration, treasurer and chief financial officer for Deltic Timber Corp., was terminated by members of the Deltic board of directors for allegedly misappropriating certain company assets for personal use, according to a news release issued by the company following an early morning conference call on Monday.
Company officials said Mann’s termination “is not related to the company’s operating or financial performance and is not expected to have a material impact on Deltic’s previously issued financial statements. Deltic currently intends to file its annual report on Form 10-K for the year ended Dec. 31, 2016, by the due date of March 16, 2017.”
Deltic also announced that Byrom L. Walker has been appointed as interim chief financial officer, effective immediately, and the company has initiated a search process to identify a permanent chief financial officer.
A Securities and Exchange Commission filing by Deltic, dated Feb. 27, reads that on Feb. 21, Kenneth D. Mann was placed on administrative leave and his responsibilities were assigned on an interim basis to Byrom Walker. “Mann’s employment was terminated for cause by the board of directors on Feb. 24.”
Item 7.01 of the SEC filing reads that on Feb. 20, Mann “informed the company’s general counsel that he misappropriated certain company assets for personal use” and on Feb. 21, he was placed on administrative leave and on Feb. 24, he was terminated. “Upon termination, the company’s board of directors revoked all of Mr. Mann’s unvested equity awards, his 2017 cash incentive bonus and equity awards that vested on Feb. 20. The amounts of assets Mr. Mann indicated he misappropriated is not financially material to the company and is less than the value of the revoked cash incentive bonus.”
The Audit Committee of the company’s board has retained Davis Polk Wardwell LLP to “assist in its review of matters involving Mr. Mann. Upon conclusion of this review, the company intends to seek full reimbursement from Mr. Mann for all misappropriated amounts.”
Walker has served as the controller of Deltic since May 2007, and has been with the company for 11 years, having joined Deltic in 2006 as manager of financial reporting. Prior to joining Deltic, Walker served as the corporate controller for Teris, LLC, a division of Suez S.A. Walker received his bachelor’s degree, with a major
in accounting from Baylor University in Texas.
Mann had served as CFO of Deltic since May 1, 2007 and served as controller of Deltic from Sept. 1, 2004 to April 2007. He joined Deltic in April 1991, and served in various accounting roles.
Mark Leland, interim president of Deltic, said Monday afternoon that he cannot comment further about Mann’s dismissal at this time.
The conference call was conducted at 7:30 a.m. on Monday. Online replays of the conference call will be available through the Deltic website at www.deltic.com and a recording of the call will be available until Friday, by dialing 1-888843-7419 and referencing replay passcode identification number 44184389.