Paul Sims

About Paul Sims

Paul Sims is President and a director of ChampionX Corporation’s surviving entity following its merger into SLB; he became president and joined the CHX board at the merger’s Effective Time on July 16, 2025 . Under the post‑merger bylaws, the President is the chief executive officer, with general supervision of the corporation’s affairs subject to the board’s authority . Prior to the merger, Sims served as president of the SLB merger subsidiary and is President, Production Systems at SLB; he lists Heriot‑Watt University in his background . CHX’s historical incentive framework (pre‑merger) emphasized Adjusted EBITDA, free cash flow efficiency, and “New Technology Revenues” in annual bonuses, and relative TSR plus free cash flow as a percent of revenue in long‑term PSAs, which informs alignment expectations for senior leadership transitions .

Past Roles

External Roles

Fixed Compensation

• CHX has not disclosed individual base salary or cash compensation for Paul Sims. He was not a named executive officer in the 2025 CHX proxy (covering 2024) and assumed office only at the July 16, 2025 closing .

Performance Compensation

• CHX’s 2024 executive plan design (context for alignment): annual EAIP weighted 70% on financial metrics and 30% on individual/strategic goals; financial metrics were Consolidated Adjusted EBITDA, Consolidated Adjusted Free Cash Flow (as % of Adjusted EBITDA), and New Technology Revenues, with an EBITDA margin hurdle gating individual payouts .

• 2024 EAIP financial results (company/segment performance used to fund bonuses) :

• Long‑term incentives (design): 50% RSUs (3‑year ratable vesting) and 50% PSAs with a 3‑year performance period; PSAs measured relative TSR (with an absolute TSR “collar”) and free cash flow as a percent of revenue . PSAs granted in 2022 paid at 144% of target (90% TSR component; 198% FCF% component) based on 2022–2024 results .

Note: These CHX plan features applied to CHX NEOs prior to the merger; Paul Sims’ specific incentive targets/payouts at CHX post‑merger are not disclosed .

Equity Ownership & Alignment

• Beneficial ownership: Paul Sims is not listed among CHX directors/executives with beneficial ownership as of April 24, 2025 (pre‑closing reference date) .
• Equity policies and alignment (CHX framework pre‑merger): anti‑hedging and anti‑pledging policy; executive and director stock ownership guidelines; Nasdaq‑compliant clawback policy .
• Merger equity treatment: at closing, CHX equity awards were converted into SLB awards (options converted into SLB options, RSUs/PSAs assumed as SLB RSUs with performance deemed per merger terms; SARs cash‑settled if in‑the‑money) . CHX common stock was converted into SLB common stock at an exchange ratio of 0.735 and CHX was delisted .

Employment Terms

• Appointment/role: At the Effective Time (July 16, 2025), all prior CHX officers ceased, and Paul Sims became president of the surviving corporation; the bylaws define the President as the chief executive officer .
• Employment agreement/severance: No CHX disclosure of an individual employment contract or severance terms for Paul Sims. Pre‑merger CHX maintained executive severance and change‑in‑control plans for NEOs (double‑trigger; 3.0x CEO and 2.5x others; no excise tax gross‑up), but those references applied to CHX NEOs prior to the merger and do not disclose Sims’ participation . CHX disclosed 280G mitigation actions for certain officers (e.g., CFO), not including Sims .

Board Governance

• Board service: At closing, all pre‑merger CHX directors resigned; Sims (a director of Merger Sub) became a director of the surviving corporation .
• Board structure post‑closing: The amended and restated certificate/bylaws provide the framework for the private, wholly‑owned subsidiary; initial number of directors set at three (modifiable by the board), with committees permitted by board resolution .
• Independence/dual‑role implications: As President (CEO) and a director of a wholly‑owned SLB subsidiary, Sims is an executive director; independence requirements typical of public boards are not applicable to the non‑public surviving entity’s board. Governance authority (including indemnification/advancement) is set by the new charter/bylaws .

Additional Context (Companywide governance and say‑on‑pay legacy)

• Related‑party transactions: None required to be reported for 2024 .
• Say‑on‑pay: CHX received at least 90% approval at each of the last five annual meetings through 2024 .

Investment Implications

• Retention and alignment: Sims is an SLB senior leader placed to run the CHX surviving entity post‑merger; while CHX‑specific compensation terms are undisclosed, historical CHX incentive design focused on cash flow, EBITDA and relative TSR, which aligns with SLB’s stated priorities around production systems and cash generation. Post‑merger equity alignment occurs via SLB equity per the conversion mechanics .
• Trading signals: CHX is now a wholly‑owned subsidiary and delisted, eliminating CHX‑specific insider trade visibility; equity compensation and any insider activity would be reflected at SLB, not CHX .
• Governance risk: Dual role (president/CEO plus director) in a private subsidiary is standard but concentrates authority; oversight operates within SLB’s corporate governance framework and the surviving entity’s charter/bylaws (robust indemnification/advancement provisions) .
• Unknowns: No public disclosure of Sims’ base salary, target/actual bonus, equity grant sizes, vesting schedules, or severance terms at CHX; committee assignments and director compensation for the surviving entity’s board are also undisclosed .

Key takeaway: Sims’ post‑merger leadership and board role centralize operating control of CHX within SLB’s production systems strategy. Without CHX‑specific pay disclosures, focus diligence on SLB filings for compensation structure and on integration milestones; CHX historical incentive frameworks (cash flow/TSR) suggest continuity of value‑creation focus if similar metrics govern Sims’ incentives under SLB .