Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
On June 18, 2020, the Board of Directors of Valero Energy Corporation (the
"Company") appointed Jason Fraser, who has served as the Company's Executive
Vice President and General Counsel since January 2019, as Executive Vice
President and Chief Financial Officer of the Company, effective as of July 15,
2020. Mr. Fraser will succeed Donna Titzman, who will remain as Executive Vice
President and Chief Financial Officer until such time, and will continue with
the Company for a transitional period thereafter. Mr. Fraser will be the
Principal Financial Officer and Principal Accounting Officer of the Company,
effective as of the time of his appointment as Chief Financial Officer.
Mr. Fraser, age 52, has significant leadership experience at the Company, having
served as the Company's General Counsel since January 1, 2019. He previously
served, from May 2018 through December 2018, as a Senior Vice President with
oversight of the Company's Public Policy, Strategic Planning, Governmental
Affairs, Investor Relations and External Communications functions. From November
2016 to May 2018, Mr. Fraser served as Vice President, Public Policy & Strategic
Planning, and from May 2015 to November 2016, he served in London as Vice
President, Europe, overseeing the Company's European commercial businesses. From
January 2013 to May 2015, Mr. Fraser previously served in the Company's San
Antonio headquarters as Senior Vice President and Deputy General Counsel of
Valero Services, Inc. and previously held various other leadership roles with
the Company, including Senior Vice President, Specialty Products of Valero
Marketing and Supply Company. He began his career with the Company in 1999.
Mr. Fraser earned his Bachelor of Business Administration degree from the
Business Honors Program at the University of Texas at Austin, and his Juris
Doctor from Harvard Law School. Prior to attending the University of Texas,
Mr. Fraser served in the U.S. Army from 1986-1990.
In connection with Mr. Fraser's appointment as Chief Financial Officer,
Mr. Fraser's annual base salary will be increased to $750,000, his target
long-term incentive percentage will be increased to 375% and he will be granted
a one-time promotional restricted stock award with a grant date fair value of
$181,250 vesting in three equal annual installments from the date of the grant,
in each case effective as of July 15, 2020.
In connection with Ms. Titzman's scheduled cessation of service as an officer of
the Company, Ms. Titzman has entered into a letter agreement with the Company
(the "Titzman Letter Agreement") providing for her continued service as Chief
Financial Officer until July 15, 2020 (or the earlier termination of her
employment by Ms. Titzman or the Company) and cooperation with the transition of
the role to Mr. Fraser through such date and during a limited period thereafter.
In consideration for Ms. Titzman's continued service and cooperation, upon the
cessation of her service with the Company in all capacities, Ms. Titzman will
receive a lump sum cash payment equal to $5,087,320, subject to her entering
into a separation agreement and release (in the form attached to the Titzman
Letter Agreement), which includes customary covenant and release provisions.
Until her separation from the Company, Ms. Titzman will continue to be eligible
to receive compensation and benefits on the same basis as provided prior to the
date of the Titzman Letter Agreement. The foregoing summary is qualified in its
entirety by reference to the Titzman Letter Agreement, a copy of which is
attached as Exhibit 10.1 and is incorporated herein by reference.
Item 8.01 Other Events.
On June 19, 2020, the Company issued a press release relating to the matters
described above in Item 5.02. A copy of the press release is attached as Exhibit
99.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
No.
10.1 Letter Agreement, dated June 18, 2020, between Valero Energy
Corporation and Donna Titzman
99.1 Press Release, dated June 19, 2020
104 The cover page from the Company's Current Report on Form 8-K,
formatted in Inline XBRL
--------------------------------------------------------------------------------
Safe-Harbor Statement
Statements contained in this communication that state the Company's or
management's expectations or predictions of the future are forward-looking
statements intended to be covered by the safe harbor provisions of the
Securities Act of 1933 and the Securities Exchange Act of 1934. The words
"believe," "expect," "should," "estimates," "intend," "target," "will," "plans,"
and other similar expressions identify forward-looking statements. It is
important to note that actual results could differ materially from those
projected in such forward-looking statements based on numerous factors,
including those outside of the Company's control, including but not limited to
the impacts of COVID-19. For more information concerning factors that could
cause actual results to differ from those expressed or forecasted, see the
Company's annual reports on Form 10-K, quarterly reports on Form 10-Q, and other
reports filed with the Securities and Exchange Commission and available on the
Company's website at www.valero.com.
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses