DMC Global Inc. appointed new CEO

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers


On January 17, 2023, DMC Global Inc. (the "Company") announced that Kevin Longe has stepped down as President and Chief Executive Officer of the Company, and that Mr. Longe has resigned as a director of the Company. The Company's Board of Directors (the "Board") appointed Michael Kuta, the Company's current Chief Financial Officer, and director David Aldous as interim co-President and Chief Executive Officers to replace Mr. Longe. Mr. Kuta will retain the role and title of Chief Financial Officer until his successor is appointed. Relatedly, Mr. Aldous stepped down as Chairman of the Board, but not as a director, and was replaced as Chairman by director Richard Graff. Each of the foregoing changes was effective as of January 15, 2023. 


It is anticipated that the Company and Mr. Longe will enter into a separation agreement pursuant to which, among other things, Mr. Longe will receive, subject to the terms and conditions of the agreement, compensation consistent with a termination without cause under his employment agreement with the Company, including 18 months of salary, a lump sum cash payment of approximately $626,000, and accelerated vesting of certain outstanding equity awards.


In his capacity as interim co-CEO, each of Messrs. Aldous and Kuta will receive a base salary of $600,000 and a performance-based incentive bonus targeted at $600,000, in each case pro-rated for time actually served as co-CEO, and a grant of restricted stock under our 2016 Omnibus Incentive Plan with a value of $600,000 with a one-year vesting period. 


Mr. Kuta, 48, joined the Company in 2014 as its Chief Financial Officer. Prior to joining DMC, Kuta was Corporate Controller of the Lubrizol Corporation, a global specialty chemicals company owned by Berkshire Hathaway, where he was responsible for corporate accounting, consolidation and financial reporting functions, and oversight of internal controls. Prior to Berkshire Hathaway's 2011 acquisition of Lubrizol, Kuta held a variety of financial roles at Lubrizol, where he gained extensive experience in business partnering, financial planning and analysis, treasury and capital markets, and leading finance and accounting organizations. Kuta also held several roles of increasing responsibility at other diversified manufacturing companies, including Lincoln Electric. He earned a bachelor's degree in accounting from Kent State University and an MBA in finance from Case Western Reserve University. He also is a CPA.


Mr. Aldous, 66, was appointed by the Board as a director in July 2013 and served as non-executive Chairman of the Board from May 2018 until his appointment as interim co-President and CEO as described above. From March 2012 until September 2022, he served as the Chief Executive Officer and Director of Rive Technology Inc., a privately-held provider of solutions for diffusion-limited reactions to the energy, chemicals, biofuel and water industries. Prior to joining Rive Technology Inc., Mr. Aldous served as Chief Executive Officer and Director of Range Fuels Inc., a clean energy and biofuels company from January 2009 to February 2012. Mr. Aldous also was employed for more than 20 years by Royal Dutch Shell, most recently as Executive Vice President, Strategy and Portfolio, and served as President of Shell Canada Products, where he led an $11 billion integrated oil business. He also served as President, CEO and Director at CRI/Criterion Inc., a multi-billion dollar global catalyst company. Mr. Aldous has served on the Board of Directors of a number of companies and joint ventures inside and outside Royal Dutch Shell. Mr. Aldous holds a B.S. in Fuels Engineering from the University of Utah and an MBA, with distinction, from the J.L. Kellogg Graduate School of Management at Northwestern University.