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Posted 17 February, 2023

MDU RESOURCES GROUP INC appointed new CEO

CEO Change detected for ticker NYSE:MDU in a 8-K filed on 17 February, 2023.


  On February 16, 2023, MDU Resources Group, Inc. (the "Company") announced that David C. Barney will cease serving in his position as Chief Executive Officer of Knife River Corporation ("Knife River"), the Company's construction materials subsidiary, effective as of March 1, 2023.  

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Overview of MDU RESOURCES GROUP INC
Real Estate/Construction • Construction
MDU Resources Group, Inc. engages in the provision of natural resource products and related services to energy and transportation infrastructure. It operates through the following business segments: Electric, Natural Gas Distribution, Pipeline and Midstream, Construction Materials and Contracting, Construction Services, and Other. The Electric segment generates, transmits and distributes electricity in Montana, North Dakota, South Dakota, and Wyoming. The Natural Gas Distribution segment distributes natural gas in Montana, North Dakota, South Dakota, Wyoming, Idaho, Minnesota, Oregon, and Washington. The Pipeline and Midstream segment offers natural gas transportation, underground storage, processing and gathering services, as well as oil gathering, through regulated and non-regulated pipeline systems and processing facilities. The Construction Materials and Contracting segment mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mixed concrete, cement, asphalt, liquid asphalt and other value-added products. The Construction Services segment refers to the inside and outside specialty contracting services. The company was founded by C. C. Yawkey, R.M. Heskett and Walter Alexander on March 14, 1924, and is headquartered in Bismarck, ND.
Market Cap
$4.45B
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MDU RESOURCES GROUP INC by TradingView
Relevant filing section
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.


Knife River Corporation Leadership Transition and Letter Agreement with David C. Barney


On February 16, 2023, MDU Resources Group, Inc. (the "Company") announced that David C. Barney will cease serving in his position as Chief Executive Officer of Knife River Corporation ("Knife River"), the Company's construction materials subsidiary, effective as of March 1, 2023. Brian R. Gray, currently President of Knife River, will assume the Chief Executive Officer role at Knife River. 


In order to support an orderly transition, Mr. Barney will become a non-executive senior advisor to Knife River. In connection with this transition, the Company and Mr. Barney entered into a letter agreement on February 17, 2023, which provides that, among other things, Mr. Barney's role as senior advisor is expected to continue through his retirement on January 3, 2024, and, during his service in that role, Mr. Barney's annual base salary and 2023 target annual bonus will remain at the same rate as currently in effect, and Mr. Barney will receive an annual equity award for fiscal year 2023.


Retention Agreement with Jeffrey S. Thiede


In connection with the Company's strategic review of its construction services business, MDU Construction Services Group, Inc. ("CSG"), on February 17, 2023, the Company, CSG and Jeffrey S. Thiede, the President and Chief Executive Officer of CSG, entered into a retention agreement (the "Retention Agreement"), with a term ending on December 31, 2023.


The Retention Agreement provides that, in the event that the strategic review results in the sale, spin, merger, or similar transaction involving all or substantially all of the business of CSG (a "Transaction"), then upon the occurrence of the closing of the Transaction (the "Closing") during the term of the Retention Agreement, Mr. Thiede will be entitled to the following payments and benefits, subject to his continuous employment through the Closing: (i) a cash retention bonus of $1,100,000 (the "Retention Bonus"); (ii) prorated vesting of his 2023 Company equity award (along with vesting of his other outstanding Company equity awards in accordance with their terms applicable upon his retirement from the Company); (iii) a prorated annual bonus based on actual performance as of the Closing; and (iv) full vesting of any unvested employer credit amount in the MDU Resources Deferred Compensation Plan. In addition, the Retention Agreement provides that, if Mr. Thiede's employment is involuntarily terminated by CSG without cause during the term of the Retention Agreement and prior to the Closing of a Transaction, he will be entitled to receive the Retention Bonus and a prorated annual bonus based on actual performance as of his termination date.