Critical Path , a Web-based software company that has seen its share of hard times, Monday named Bill McGlashan as its permanent CEO.
McGlashan had been serving as the San Francisco-based company’s interim CEO since April 2001. The company’s board of directors was impressed with the way he helped to lead the company to financial stability in 2001.
“Since Bill jumped in nine months ago to help drive the turnaround at Critical Path, we have accomplished what we set out to do: restore the company’s financial strength, solidify our management team and re-position a strong core business around our proven communication technology,” says Critical Path executive chairman, founder and former CEO David Hayden. “Bill has shown an exceptional ability to focus on and move aggressively on key decisions while applying discipline and sound business practices to our operations. Bill’s teamwork and leadership have been fundamental to rebuilding and revitalizing Critical Path, and our working relationship is a uniquely strong asset for the company. We are now in the enviable position of having a great leadership team, along with the technology and vision that we need to build Critical Path into a very substantial global company.”
Critical Path’s core products include an Internet messaging infrastructure platform and access services for wireless and wire-line users.
The company’s problems stem way back from the announcement of sales of licensing agreements that it says should not have been booked, or allocated to other periods. Trading was halted on Feb. 2, pending preliminary investigation and did not resume until adjusted figures were posted on Feb. 14.
The charges resulted in the now resolved class action lawsuit, a SEC fraud investigation, layoffs and mounting losses.
Things got so bad that founder David Hayden returned to the company and made sweeping changes including selling its mainframe rehosting business to Sun Microsystems . Fortunately, Sun was able to hire everyone involved in the project.
The turnaround included an infusion of $95 million in new funding and the settlement of the class action suit.
