We have self dealing, agency costs, and deception in NCI mgmt. BTW, the stock is down 50% today. Good catch OpalApril.
biz.yahoo.com
Navigant's stock tumbles after CEO resigns
CHICAGO, Nov 22 (Reuters) - Shares of utilities consulting firm Navigant Consulting Inc. (NYSE:NCI - news) dropped more than 60 percent to a low of 9-5/8 on Monday after the company named a new top management team following the resignations and dismissals of some of its senior managers.
Shares of the company, which offers strategic, financial and management consulting services, were trading off 12-11/16 at 13-5/16 on the New York Stock Exchange at 3:40 p.m. EST (2040 GMT), on turnover of more than 9 million shares.
``What's happened today is people had listened to the senior management group, had accepted what they essentially preached as gospel, and were learning some facts that they hadn't heard yet, that were new to them (analysts), which created uncertainty,' Thatcher Thompson, vice president at Merrill Lynch, said following a conference call with Navigant. ``That's what created the sell-off today,' he said.
Navigant said earlier Monday that it had accepted the resignation of Robert Maher, the company's chairman, chief executive officer and president.
The company also said Charles Demirjian, general counsel, and Stephen Denari, vice president of corporate development, were dismissed.
Company officials were not immediately available to provide more information.
The company's stock had recently taken a hit after analysts expressed concern over a $10 million personal loan to Maher. In October, the company was also affected by reports alleging the company may have overstated its revenues and internal growth rate.
Navigant said Monday the company had also given a total of $7 million in loans to other senior executives. |
