Yesterday, during its fourth quarter earnings call, thin-film PV maker First Solar blamed the $39.3 million spike in its operating costs to a string of one time expenses incurred in part with the hiring of new CEO Rob Gillette and the departure of an unnamed senior executive.
First Solar CFO Jens Meyerhoff, who spoke for most the call, said the company had $22.9 million in none reoccurring expenses during the fourth quarter. Of that amount about $9.1 million funded compensation expenses related to Gillette’s hiring and the departure of the unnamed executive.
First off, who is the unnamed executive?
Likely John Carrington, First Solar’s former head of global business and marketing, who abruptly left the company this summer. In announcing his departure First Solar filed a (discreet) Securities and Exchange Commission (SEC) filing, rather than issuing a standard press release.
Shortly after, this time issuing a press release, First Solar announced that former Honeywell International CEO Rob Gillette would join the company as its new chief executive.
Last December TK Kallenbac, who worked at Honeywell International with Gillette, was hired to replace Carrington as head of marketing.
According to an SEC filling Carrington left First Solar with nearly 18,000 company shares worth about $2.27 million, based on yesterday’s closing price.
As for Gillette, upon joining First Solar, he received a $5 million cash bonus, half payable on his first day at work and the balance due on the one year anniversary at the company. First Solar has to pay the remaining $2.5 million to Gillette even if he’s no longer working for them. We will be posting copies of the Gillette and Carrington fillings below.
Gillette was also granted $9.25 million in stock options, including $3.25 million in unrestricted shares and $6 million in restricted shares.
We’ve emailed and called First Solar’s investor and media relations and will post with any updates.