Ken Paradis is out at CPSC
So the trend of abrupt CEO changes in the MSA industry continues. First John Williams at Gould & Lamb last July, followed by Kent Takemoto at PMSI Settlement Services this past August. Now Ken Paradis is out at the company that bears his namesake, Crowe Paradis Service Corp.
CPSC was sold to Verisk Analytics late in the fourth quarter of 2010. Usually in acquisitions, the CEO and senior management team agrees to stay on a certain amount of time after the transaction closes. That time frame is typically one to two years so a departure after six months is pretty surprising. What does this mean? Conspiracy theories abound. Is this a repeat of the G&L situation and Ken was ousted for a stall in previously rapid growth by his new corporate masters? Did he try to fire the new CEO and have the dime dropped on him for past misdeeds that management couldn’t ignore? Or is it more like the PMSI situation where he made wild promises and marketing missteps that cost him credibility in the industry and trust among customers?
Of course not. It means Ken Paradis has $20MM in the bank and is taking his toys out of the sandbox and going to play somewhere else. Good for him. From a business case study perspective, it is pretty impressive that Crowe Paradis was little more than a one million dollar per year firm in 2006 and grew to a company with a market capitalization of $90MM in just five years. Ken deserves much of the credit for his vision of building a better mousetrap to compete with the incumbents at the time. We will see if his replacement can continue the CPSC magic as competition for dwindling MSA revenues intensifies.
Rob Lewis has been promoted to President and Dorothy Keller to CEO. Welcome to the club.