Vectrus Inc. named Charles "Chuck" Prow as president and CEO Tuesday after the sudden retirement of Ken Hunzeker, who oversaw the 2014 spinoff of the Colorado Springs-based defense contractor from Exelis Inc.
Prow, 57, has spent 25 years as an executive at IBM Corp., PricewaterhouseCoopers and Coopers & Lybrand, working with Department of Defense and other government customers while at IBM, according to a news release from Vectrus.
"We believe Chuck's broad federal experience and rick skill set will assist Vectrus in expanding our customer base and capturing new opportunities we see in the facilities and logistics services market," Vectrus Chairman Lou Giuliano said in the release. "His experience in working with a wide range of government customers, as well as his understanding of the role technology can play in the services industry, makes him well-suited to lead Vectrus into the next phase of our development."
Prow will receive a $600,000 annual salary plus a bonus of up to $600,000 and incentive awards of up to 900,000 shares of the company's stock, according to documents filed Tuesday with the Securities and Exchange Commission.
Prow said he is "looking forward to bringing my experience and skill set to build on what the team has already achieved and to continue to position Vectrus as a premier provider of IT (information technology), facility and logistic services." He was not available Tuesday for further comment.
The company said in the filing that it had begun a "comprehensive" CEO search as part of a "succession planning process" and hired Prow Nov. 30, when Hunzeker told directors he planned to retire and resign from the Vectrus board, effective Monday.
Hunzeker's resignation "did not involve any disagreement with the company, the company's management or the board" and he will participate in the transition process, the filing said.
Prow was selected by directors based "on his solid record of developing strong teams and expanding market share at various federal agencies," the release said.
Giuliano said in the release that Hunzeker's "efforts in guiding Vectrus through the spin-off and its first two years as a public company created a solid foundation. He has enabled Vectrus to establish a strong reputation of supporting customers' missions with exemplary contract execution."
The CEO change comes about two months after the company lost its largest contract, the Kuwait-Base Operations and Security Support Services contract, in a rebid to KBR-Triple Canopy. The Army notified Vectrus last month it was taking "corrective action" to resolve the company's protest of the $117.8 million award to KBR-Triple Canopy to "amend the solicitation to clarify its requirement, request revised proposals from the existing offerers based on the amended solicitation, conduct discussions if necessary and issue a new award decision."
The Kuwait contract generated $323 million, or about 36 percent of Vectrus' revenue, in the first three quarters of the year. The contract expires Dec. 28, but the Army can extend it through March 28.
Vectrus also protested an August award of a $70.4 million modification to its global logistics enterprise Army Prepositioned Stock-5 contract in Kuwait and Qatar to URS Federal Services. The Government Accountability Office is expected to rule on that protest by Dec. 22. The contract, which expires Feb. 28, generated $134 million, or 15 percent of the company's revenue, during the first three quarters of the year.
A retired Army lieutenant general, Hunzeker, 63, has been president of what is now Vectrus since April 2011. He received $2.14 million last year in salary, bonus, stock, options, incentive pay and other compensation and is eligible to receive two years of severance pay and other compensation totaling up to $2.89 million.
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