FTI names Shaughnessy chairman as it splits posts

Dunn to keep other titles of CEO and president

September 25, 2004|By Meredith Cohn | Meredith Cohn,SUN STAFF

Annapolis-based FTI Consulting Inc. said yesterday that it had hired board member Dennis Shaughnessy as full-time executive chairman of the board effective Oct. 18 as it separates the roles of chairman and chief executive.

Jack Dunn, the current chairman, will continue as president and CEO. His contract was extended with renewal options through 2010.

"I recently recommended to our board that FTI separate the office of chairman of the board and chief executive officer," Dunn said in a statement. "Happily, this recommendation coincided with the availability and enthusiastic interest of an exceptional candidate, Dennis Shaughnessy, to fill the role of executive chairman."

The company made the announcement after a tumultuous period for the company.

FTI, which had revenue of $375.7 million last year, announced in late January that executives and senior employees responsible for about a fifth of its cash flow had quit, news that prompted a sharp drop in the company's share price.

Then, in April, the company reported that first-quarter income from continuing operations fell nearly 37 percent to $20.9 million from $32.9 million a year earlier. In the second quarter, the company reported income from continuing operations of $12.8 million, down 31 percent from $18.5 million in last year's corresponding quarter.

Dunn said be believes Shaughnessy, who formerly was a general partner with Grotech Capital Group, a venture capital-merchant banking firm, can help steer the company through potential acquisitions, expansions abroad and "integration of our practices into a mature and cohesive culture." He'll also help recruit "sought-after" professionals, Dunn said.

FTI is a provider of corporate finance and restructuring, forensic and litigation consulting. It has operations in 24 U.S. cities and London.

Shares of FTI closed yesterday at $18.99, up 16 cents.

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