NORTHBROOK, Ill., Feb. 17, 2022 /PRNewswire/ -- Stepan Company
(NYSE: SCL) today announced that F. Quinn
Stepan, Jr. will retire as Chief Executive Officer of the
Company on April 25, 2022. Mr. Stepan
will continue to serve as non-executive Chairman of the Board
assuring an effective transition. Scott
Behrens, currently President and Chief Operating Officer,
will succeed him as President and CEO. The Company expects that Mr.
Behrens will be nominated for election to the Board of Directors at
the 2022 Annual Meeting.
"I am extremely pleased that Scott will be the next CEO of
Stepan Company," said Mr. Stepan. "Over the nearly 30 years that I
have worked with Scott, he has acquired extensive Company and
industry knowledge and experience. Under his leadership the
business has diversified its market presence, delivered innovative
sustainable technologies, and completed multiple acquisitions which
have contributed to record results. No one is better suited to lead
us into the future. We are well positioned to execute on our
strategy and now is the right time for a transition that the Board
and I have planned."
Stepan added, "It has been an honor and privilege to serve as
the third founding family CEO of Stepan Company. I am proud not
only of the opportunities and value that we have created for
employees, customers and shareholders, but how we have delivered
those results. I am grateful to the Stepan employees around the
world, whose unwavering commitment to our mission has allowed us to
grow and will ensure our future success."
During Mr. Stepan's tenure as CEO, which began on January 1, 2006, the Company has seen significant
growth. Sales increased over 50 percent and net income increased
from $13 million in 2005 to a record
$138 million in 2021. Likewise,
shareholder value has grown exponentially from a year-end market
capitalization of $142 million in
2005 to $2.8 billion in 2021 and from
a Company common stock price of $13.44 per share on December 30, 2005, to a recent 52 week high of
$139.30 per share.
Mr. Behrens, who was named President and Chief Operating Officer
in 2021, brings global industry and leadership experience. Scott
has been a member of the Company's Operating Committee since 2014,
when he was appointed VP and General Manager – Surfactants, the
Company's largest business segment, which accounts for
approximately 65% of the annual revenue of the Company. Prior to
that he served in various roles in R&D, sales and marketing
within the Company. Scott also served on the Board of Directors of
the American Cleaning Institute (ACI) from 2017 through 2020 where
he last served as ACI's Vice Chairman.
"I am honored and excited by the opportunity to serve as CEO of
Stepan Company," said Mr. Behrens. "Stepan has a strong record of
delivering quality products to our customers and returns for our
shareholders. We intend to continue that record of performance with
innovative and sustainable technologies and services. The
resiliency of our team to safely and reliably partner with
customers despite the recent pandemic and supply chain challenges
is testament to what we can accomplish together. I look forward to
working with our team to execute our growth plan and deliver
opportunities for our customers and shareholders."
Mr. Behrens added, "Quinn has been an exemplary leader and
mentor and has taken the Company to a different operating and
financial performance level. His passion leaves an indelible legacy
on Stepan Company and the chemical industry. I am delighted that
Quinn will remain Chairman of the Board and look forward to working
with him in that capacity."
Lead Independent Director Ed
Wehmer said, "The Board views succession planning as one of
our most important roles and today's announcement culminates a
thoughtful and well-crafted succession planning process. Scott is a
visionary leader who has proven himself throughout his career. He
is the right leader to carry Stepan forward into its next period of
growth."
Mr. Wehmer concluded, "Over the span of his 36 year career with
Stepan, Quinn has been the key driver and architect of the
Company's growth. He has created a strong executive team that is
well prepared to lead the Company to continued success. Quinn has
been a tireless champion of our people and Values. The Board looks
forward to the continuing benefit of his sound judgement, deep
industry knowledge and passion for the Company as Chairman of the
Board."
The Company also announced that Mike
Boyce, Chair of the Company's Nominating and Corporate
Governance Committee, has notified the Board of Directors that he
will not seek re-election at the end of his term and will retire
from the Board of Directors at the 2022 Annual Meeting of
Stockholders. The Board of Directors wishes to thank Mike for the
valuable leadership and guidance he has provided in his 12 years of
service as a director.
Additional Information and Where to Find It
The foregoing is not a proxy statement or a solicitation of
proxies from the holders of common stock of the Company. A
solicitation of proxies in connection with the 2022 Annual Meeting
of Stockholders will be made only by the Company's definitive proxy
statement that will be mailed to all shareholders of record on the
record date of March 4, 2022. The
Company will be filing a definitive proxy statement for the annual
meeting with the Securities and Exchange Commission (the "SEC").
Stockholders are urged to read the proxy statement and any other
relevant documents filed or that will be filed with the SEC when
they become available because they will contain important
information. Stockholders will be able to receive the proxy
statement and other relevant documents free of charge at the SEC's
website at www.sec.gov or through the Company's own website at
www.stepan.com. This Form 8-K is being filed as soliciting material
pursuant to Rule 14a-12 under the Securities Exchange Act of 1934
solely as a precautionary matter, notwithstanding the fact that the
issuer does not believe it constitutes solicitation material.
Participants in the Solicitation
The directors, nominees for election as director, executive
officers and certain other members of management and employees of
the Company may be deemed "participants" in the solicitation of
proxies from shareholders of the Company in connection with the
matters to be considered at the 2022 Annual Meeting of
Stockholders. Information regarding the persons who may, under the
rules of the SEC, be considered participants in the solicitation of
the shareholders of the Company in connection with such matters
will be set forth in the proxy statement to be filed with the SEC.
In addition, information about the Company's executive officers and
directors may be found in the Company's Annual Report on Form 10-K
for the fiscal year ended December 31,
2020 and in its definitive proxy statement filed with the
SEC on March 25, 2021.
Corporate Profile
Stepan Company is a major manufacturer of specialty and
intermediate chemicals used in a broad range of industries. Stepan
is a leading merchant producer of surfactants, which are the key
ingredients in consumer and industrial cleaning and disinfection
products and in agricultural and oilfield solutions. The Company is
also a leading supplier of polyurethane polyols used in the
expanding thermal insulation market, and CASE (Coatings, Adhesives,
Sealants, and Elastomers) industries.
Headquartered in Northbrook,
Illinois, Stepan utilizes a network of modern production
facilities located in North and South
America, Europe and
Asia.
The Company's common stock is traded on the New York Stock
Exchange (NYSE) under the symbol SCL. For more information about
Stepan Company please visit the Company online at
www.stepan.com.
More information about Stepan's sustainability program can be
found on the Sustainability page at www.stepan.com.
Contact: Luis E. Rojo
847-446-7500
Certain information in this news release consists of
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements
include statements about Stepan Company's plans, objectives,
strategies, financial performance and outlook, trends, the amount
and timing of future cash distributions, prospects or future events
and involve known and unknown risks that are difficult to predict.
As a result, Stepan Company's actual financial results,
performance, achievements or prospects may differ materially from
those expressed or implied by these forward-looking statements. In
some cases, you can identify forward-looking statements by the use
of words such as "may," "could," "expect," "intend," "plan,"
"seek," "anticipate," "believe," "estimate," "guidance," "predict,"
"potential," "continue," "likely," "will," "would," "should,"
"illustrative" and variations of these terms and similar
expressions, or the negative of these terms or similar expressions.
Such forward-looking statements are necessarily based upon
estimates and assumptions that, while considered reasonable by
Stepan Company and its management based on their knowledge and
understanding of the business and industry, are inherently
uncertain. These statements are not guarantees of future
performance, and stockholders should not place undue reliance on
forward-looking statements.
There are a number of risks, uncertainties and other
important factors, many of which are beyond Stepan Company's
control, that could cause actual results to differ materially from
the forward-looking statements contained in this news release. Such
risks, uncertainties and other important factors include, among
other factors, the risks, uncertainties and factors described in
Stepan Company's Form 10-K, Form 10-Q and Form 8-K reports and
exhibits to those reports, and include (but are not limited to)
risks and uncertainties related to the impact of the COVID-19
pandemic; accidents, unplanned production shutdowns or disruptions
in manufacturing facilities; reduced demand due to customer product
reformulations or new technologies; our inability to successfully
develop or introduce new products; compliance with laws; our
ability to identify suitable acquisition candidates and
successfully complete and integrate acquisitions; global
competition; volatility of raw material and energy costs and
supply; disruptions in transportation or significant changes in
transportation costs; downturns in certain industries and general
economic downturns; international business risks, including
currency exchange rate fluctuations, legal restrictions and taxes;
unfavorable resolution of litigation against us; maintaining and
protecting intellectual property rights; our ability to access
capital markets; global political, military, security or other
instability; costs related to expansion or other capital projects;
interruption or breaches of information technology systems; our
ability to retain executive management and key personnel; and our
debt covenants.
These forward-looking statements are made only as of the date
hereof, and Stepan Company undertakes no obligation to update or
revise these forward-looking statements, whether as a result of new
information, future events or otherwise.
View original
content:https://www.prnewswire.com/news-releases/stepan-company-announces-ceo-succession-plan-301484534.html
SOURCE Stepan Company