The reduction in corporate expense is expected to be driven by a series of measures:
Mike Willis, Gevo’s Chief Financial Officer, has entered into a mutual separation agreement and is expected to leave the company in early January 2018. Gevo does not currently plan on replacing the Chief Financial Officer at this time.
Certain executive officers who are remaining with the company have volunteered to take a reduction in compensation, including Dr. Patrick Gruber, Gevo’s Chief Executive Officer, who has agreed, at his discretion, to a salary reduction of 30% in 2018.
Gevo will reduce its overall headcount in Englewood, CO, by approximately 40%, as compared to the peak employee level in 2017.
Gevo’s employees will forego their 2017 annual cash bonus.
A systematic review of all non-employee expenses across the company has been undertaken, and reductions have or will be made wherever possible.
we have a “chicken and egg” problem. Large scale product demand requires us to drive cost out of our production processes, which we expect to be able to achieve through greater production scale.