Colfax Corp. has tapped a former DuPont senior vice president as its next chief executive.
Matthew L. Trerotola will replace Steven E. Simms, who will assist in the transition and will continue to serve on the company's board of directors. Simms, the Baltimore region's highest-paid CEO in 2014, announced his intention to retire earlier this year, the company said.
Annapolis Junction-based Colfax, which makes industrial pumps and valves, will give Trerotola a signing bonus of $3 million and $3.75 million in restricted stock, according to a company filing with the U.S. Securities and Exchange Commission. He will earn a base salary of $1 million.
Trerotola also will receive $9 million in long-term stock options beginning in 2018 and earn $4.5 million in restricted stock based on his performance.
Most recently, Trerotola, 48, was responsible for chemical company DuPont's $6.3 billion electronics and communications and safety and protection units. He also oversaw DuPont's business in Asia and the Pacific. While he has spent most of his career at DuPont, he also worked for McKinsey & Co. and Danaher Corp., a Colfax predecessor.
Colfax reported Thursday that it earned $53 million on revenues of $1.03 billion in the three-month period ending in June, a drop from the $192 million it earned in the same period last year. Colfax, which moved its headquarters from Richmond, Va., in 2011, has grown in recent years through acquisitions.
The company's shares fell 3.6 percent Friday to close at $39.54.
Mitchell P. Rales, chairman of Colfax, said company leaders got to know Trerotola during his time at Danaher and were impressed by his work.
"He is an extremely talented executive with an ideal combination of strong leadership skills, a track record of driving organic growth and significant expertise in global manufacturing and engineering businesses," Rales said.