Company: BWXT
Filing Date: 2025-03-19
Form Type: DEF 14A
Source: 0001486957-25-000016
Chunk: 79

Company: BWX Technologies, Inc.
Filing Date: 2025-03-19
Form: DEF 14A
Chunk 79
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 elimination is not permitted by the Delaware General Corporation Law ("DGCL").

Our Certificate currently contains a provision eliminating the personal liability of the Company's directors for monetary damages for breach of fiduciary duty as a director, except to the extent such an elimination is not permitted by the DGCL. Pursuant to an amendment to Section 102(b)(7) of the DGCL, effective in August 2022, a Delaware corporation is permitted to include in its certificate of incorporation a provision eliminating or limiting monetary liability for certain officers for breach of the duty of care in certain circumstances. As amended, Section 102(b)(7) of the DGCL provides that certain officers may be entitled to exculpation; namely: (i) a corporation's president, chief executive officer, chief operating officer, chief financial officer, chief legal officer, controller, treasurer or chief accounting officer; (ii) an individual identified in public filing as one of the most highly compensated officers of the company; and (iii) an individual who has consented to service of process in Delaware by written agreement.

The Proposed Amendment would exculpate officers only in connection with direct claims brought by stockholders for breaches of the duty of care, but, like the provision limiting monetary liability of directors, would not eliminate or limit liability of officers with respect to (i) any claims involving breaches of the duty of loyalty to the Company or our stockholders; (ii) any claims involving acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law; or (iii) any transaction in which the officer derived an improper personal benefit.

The DGCL only permits, and our Proposed Amendment would only permit, exculpation for direct claims brought by stockholders, but would not eliminate an officer's monetary liability for breach of the duty of care claims brought by the Company or derivative claims made by stockholders on behalf of the Company. The Board believes that aligning the protections available to our officers with those that have long been afforded to our directors would empower the officers to exercise their business judgment in furtherance of stockholder interests without the potential for distraction posed by the risk of personal liability. The nature of the roles of directors and officers often require them to make decisions on critical matters, which are frequently in response to time-sensitive opportunities and challenges and can create substantial risk of investigations, claims, lawsuits or other proceedings to impose liability on the basis of hindsight. Limiting concerns about personal risk would further empower officers, like directors, to best exercise their business