BKR 8-K
Baker Hughes Co (BKR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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| Item 5.02. | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On February 24, 2025, the Board of Directors (the “Board”) of Baker Hughes Company (the “Company”) announced the appointment of Ahmed Moghal as Executive Vice President and Chief Financial Officer of the Company, effective February 24, 2025 (the “Effective Date”). Mr. Moghal will succeed Nancy Buese who, by mutual agreement with the Board, ceased to serve as Chief Financial Officer of the Company effective February 24, 2025, but will remain in an advisory capacity until April 30, 2025.
Mr. Moghal, age 43, has served as Senior Vice President and Chief Financial Officer of the Industrial and Energy Technology business of Baker Hughes since 2023. Prior to this role, he was appointed as the Financial Planning & Analysis Leader at the time of the merger of Baker Hughes and GE Oil & Gas in 2017. In his over two decades of experience, Mr. Moghal has worked in several industries globally, driving performance across multiple business models and cycles. He started his career in GE in the Financial Management Program and subsequently Corporate Audit Staff. Mr. Moghal entered into a promotion offer letter (the “Offer Letter”) with the Company on the Effective Date, setting forth the terms of his employment and compensation. Pursuant to the Offer Letter, Mr. Moghal will be entitled to a base salary of $750,000 and a target bonus opportunity of 100% of base salary, with the actual payout to be based on Company and individual performance. Mr. Moghal will also be eligible to participate in the Company’s 2021 Long-Term Incentive Plan and in the Company-sponsored benefit programs, including health and welfare programs. In addition, Mr. Moghal will be granted “top-up” equity awards in connection with his promotion, with a grant date value of $2,155,000, comprising 50% time-based restricted stock units and 50% performance-based restricted stock units, each having the same performance conditions, service-based vesting requirements, and other terms and conditions as the restricted stock units and performance-based restricted stock units, respectively, that were granted to Mr. Moghal in his prior role in January 2025.
Separation Agreement with Nancy Buese
Effective February 24, 2025, Ms. Buese entered into a separation agreement (the “Separation Agreement”) with the Company. The Separation Agreement provides for Ms. Buese’s termination of employment, and transition into the role of advisor to the Company’s Chairman and Chief Executive Officer, on the Effective Date. Pursuant to the Separation Agreement, Ms. Buese’s separation from employment is treated as a termination without cause and, accordingly, the Company will provide Ms. Buese with the severance payments and benefits that are required by the applicable Company plans, including (A) subject to Ms. Buese’s execution and non-revocation of a general release of claims in favor of the Company and compliance with applicable restrictive covenants, (i) a lump sum cash payment equal to the 12 months of her current annual base salary and (ii) outplacement services for a period of 12 months, which constitute the payments and benefits to which she is entitled under the terms of the Company’s Executive Severance Program, and (B) prorated vesting of Ms. Buese’s outstanding equity awards in accordance with the terms of the Company’s 2021 Long Term Incentive Plan and the award agreements granted thereunder. Ms. Buese is also eligible for continued participation in the Company’s health and welfare benefit plans for the six- month period following the Effective Date at no cost to Ms. Buese. Ms. Buese will serve as an advisor to the Company’s Chairman and Chief Executive Officer through April 30, 2025, and as compensation for her advisory services, Ms. Buese will receive a monthly advisor fee of $200,000 and the prorated vesting of her outstanding equity awards will be computed through March 31, 2025.
Other Disclosures
There are no arrangements or understandings between Mr. Moghal and any other person pursuant to which Mr. Moghal was selected as an officer. Pursuant to Item 404(a) of Regulation S-K, the Company is hereby disclosing that Mr. Moghal’s spouse, Judit Prieto Matesanz, was previously employed by the Company and received total compensation of approximately £1,183,000 in 2024. On August 24, 2024, Ms. Prieto Matesanz and the Company entered into an agreement relating to the termination of her employment with the Company effective December 31, 2024, pursuant to which, Ms. Prieto Matesanz will receive a cash separation payment of approximately £1,300,000 from the Company in July 2025. There are no other transactions in which Mr. Moghal has an interest requiring disclosure under Item 404(a) of Regulation S-K.
| Item 7.01. | Regulation FD Disclosure. |
On February 24, 2025, the Company issued a press release announcing the executive transition described in this Current Report on Form 8-K, and reaffirming the Company’s financial guidance provided on January 31, 2025. A copy of the press release is furnished herewith as Exhibit 99.1.
| Item 9.01 | Financial Statements and Exhibits. (Information furnished in this Item 9.01 is furnished pursuant to Item 9.01.) |
(d) Exhibits.
| 99.1 | Press Release dated February 24, 2025 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BAKER HUGHES COMPANY | ||||||||
| Dated: February 24, 2025 | By: | /s/ Fernando Contreras | ||||||
| Vice President, Legal Governance and Corporate Secretary | ||||||||
Exhibit 99.1
BAKER HUGHES APPOINTS AHMED MOGHAL CHIEF FINANCIAL OFFICER
Experienced Baker Hughes finance leader will play key role in
driving next phase of strategic transformation and growth
HOUSTON and LONDON, Feb. 24, 2025 – Baker Hughes Company (Nasdaq: BKR) (“Baker Hughes” or the “Company”) on Monday announced that Ahmed Moghal, a highly experienced finance leader who currently serves as chief financial officer (CFO) of our Industrial & Energy Technology (IET) business, has been appointed CFO of the Company, effective immediately. Prior to IET, Moghal held senior positions in various business and corporate roles. In this role, he succeeds Nancy Buese, who, by mutual agreement with the Company, ceased to serve as CFO effective today.
Lorenzo Simonelli, Baker Hughes chairman and chief executive officer, said, “The news we are announcing today reflects the substantial progress Baker Hughes has made in executing our strategic transformation. Reflecting on the financial successes achieved during Horizon 1, we drove record results last year while taking key actions across the Company to significantly expand margins. As we progress into the next horizon, our focus remains on driving profitable growth across the Company as we further exploit our versatile IET portfolio, leverage growth across the natural gas and LNG value chain, scale our new energy and digital businesses, and drive enhanced growth in mature assets solutions.”
He continued, “As we embark on this next phase of growth, it is crucial to have a CFO with deep-domain knowledge across both business segments, a track record of fostering collaboration and strong financial performance, and a comprehensive understanding of our growth strategy. As part of his previous roles in Baker Hughes, and as well as currently leading free cash flow efforts across the Company, Moghal has developed unique insights into our business and broad portfolio that will ensure we efficiently allocate capital to drive profitable growth while remaining focused on continuous margin improvement. We are confident he is the right person to help us deliver on our financial objectives and support a culture of innovation and a growth mindset across the Company.”
The Company reaffirmed its first-quarter and full-year 2025 outlook shared during its 2024 fourth-quarter and full-year earnings conference call on Jan. 31, 2025. This includes projecting another solid year of EBITDA growth, achieving a 20% EBITDA margin for its OFSE segment in 2025 and the IET segment in 2026, and committed to returning 60% to 80% of free cash flow to shareholders.
With Moghal’s appointment, Buese will move to a strategic adviser role and will depart the Company on April 30, 2025.
Simonelli added, “We are grateful to Nancy for the important role she played in executing on key pillars of the first phase of our transformation, including driving operational efficiency and achieving cost reduction objectives to deliver enhanced margin growth and shareholder returns. We wish her all the best in her future endeavors.”
Moghal has served as senior vice president & CFO of the Industrial and Energy Technology business of Baker Hughes since 2023. Prior to this role, he was appointed as the financial planning & analysis leader at the time of the merger of Baker Hughes and GE Oil & Gas in 2017. In his more than two decades of experience, Moghal has worked in several industries globally, driving performance across multiple business models and cycles. He started his career in GE in the Financial Management Program and subsequently Corporate Audit Staff.
About Baker Hughes:
Baker Hughes (Nasdaq: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward—making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
For more information, please contact:
Investor Relations
Chase Mulvehill
+1 346-297-2561
Media Relations
Adrienne M. Lynch
+1 713-906-8407
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