Management Turnover as Change Agent

Tuesday, February 12, 2008

El Paso Electric CEO Leaves Suddenly

El Paso Electric's EE (NYSE) CEO, Ershel Redd, who was only appointed to the post back in May 2007, is leaving his position immediately. The company's board of directors made the announcement today. The board stated Redd was departing to pursue other business opportunities. The board asked asked J. Frank Bates, Executive Vice President and Chief Operating Officer, to serve as interim CEO.

The suddenness of the announcement and the lack of a successor begs for further information. While only a guess, it is very likely that Gabelli Funds had a role in the sudden and unexpected announcement. According to a recent SEC filing, the funds acquired a 5.3 percent stake in the company. They must be looking to make some major management changes.

Keep a very close eye on who the company picks as CEO once its search is completed and watch for possible moves by Gabelli Funds.

For more:

Press Release

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