This is a very interesting move, and bravo to the investors and to Xe for bringing on this heavy weight. John Ashcroft is definitely taking on a risky move as well, and I salute his courage for jumping on board.
So what does this mean in terms of the future of Xe? There are three things that come to mind. The first is the ongoing litigation that Xe has been up against, both by lawsuits and with the stuff going on between the US Gov and the company over various incidents. The second is the legally complex and highly dangerous missions that Xe is a part of, and especially as the DoS builds and expands their army of private security contractors. Third is how to structure the companies policies to best fit in with the new codes of conduct and licenses that companies will have to abide by as budgets are approved and laws are implemented.
Probably the one thing that keeps coming to my mind about this industry is that companies will continue to risk a lot, and in order to protect themselves legally, they have to have an army of lawfare warriors. That whole saying of ‘send guns, money, and lawyers’ is absolutely true, and the companies that want to survive and continue to provide their services, need really kick ass legal firms or legal eagles to protect them.
It will be a complex legal environment as we press forward in this war, and as we involve industry in the counter-piracy or counter-transnational criminal organizations game, and picking a former Attorney General of the United States (with all of his connections and influence) is a good move to help navigate that.
What is also interesting about this move, is that having him on board might help to attract a CEO and/or management team of a higher caliber. It will add ‘value’ to the company, because they have added a significant player to the team. These things matter at the upper level, and the investors are doing all they can to not only maintain the company’s current value, but to increase it and grow. And if the customer (meaning the US government) knows that the company has a high level legal heavy weight and a strong lawfare army, then that gives them and the tax paying public a little bit more of a warm and fuzzy about the intent of the company. The narrative says that ‘the company wants to do good, and provide an excellent service for it’s clients’. –Matt
Former Attorney General John Ashcroft to Become Independent Director of Xe Services
Past Department of Justice Head to Chair Governance Subcommittee
May 04, 2011
USTC Holdings, LLC, the investor consortium that acquired Xe Services, LLC, including its main holding U.S. Training Center, Inc. (“USTC”) in December 2010, today announced that former U.S. Attorney General John Ashcroft will serve as an Independent Director of the company. USTC is a leading provider of training and security services focused on worldwide operations in support of the United States Government and other customers.
“Attorney General Ashcroft’s accomplished career will certainly provide a strong reference for the Company as we continue to strengthen its governance and accountability.”
Upon acquiring Xe and its core operating businesses last year, USTC Holdings, LLC indicated that it would form a new Board of Directors to deepen the company’s governance and oversight capabilities.
Ashcroft has been selected to chair the company’s Subcommittee on Governance, a newly formed entity within Xe’s board. The Governance Subcommittee will focus on the company’s efforts to maximize governance, compliance and accountability, continuing to build and promote the highest degrees of ethics and professionalism within the private security industry. With the formation of this subcommittee, and with Ashcroft as its chair, USTC aims to set the bar for industry standards against which all other companies will be measured.
“We are ecstatic and honored to have Attorney General Ashcroft join the USTC team. His relevant experience, unparalleled reputation for integrity and personal commitment to ethics, transparency, and excellence make him a valuable addition to the Company,” said Red McCombs, Chairman of the Board. Added Jason DeYonker, on behalf of the Sponsor group, “Attorney General Ashcroft’s accomplished career will certainly provide a strong reference for the Company as we continue to strengthen its governance and accountability.”
“I’m delighted to be involved in USTC’s next phase of ownership and growth, particularly in helping to oversee its commitment to professionalism, compliance and accountability within the security industry,” Ashcroft said in a statement. “This is a company with a strong history of service to its country, and a reputation of best-in-class offerings to its public and private customers. I look forward to helping USTC enhance its governance and oversight capabilities as the company moves forward.”
As Attorney General, Ashcroft led the U.S. Department of Justice through the turbulent period after the September 11th attacks, restructuring the Department to focus primarily on preventing attacks against the homeland. He oversaw a tough antiterrorism campaign that successfully resulted in no further attacks against the country during his tenure. Ashcroft’s leadership also led to the dismantling of terrorist cells across the country and the disruption of over 150 terrorist plots worldwide. Previously, Mr. Ashcroft served as a United States Senator, representing Missouri from 1995 to 2001 and as governor of the state from 1985 to 1993.
Ashcroft’s appointment comes on the heels of the selection of Retired Admiral Bobby R. Inman, USN, Red McCombs, co-founder of Clear Channel Communications, and Russ Robinson, former CEO of U.S. Zinc, to Xe’s Board of Directors.
ABOUT U.S. TRAINING CENTER SUBSIDIARY OF XE SERVICES
USTC is the pre-eminent global provider of training and technical services focused on counterterrorism, force protection, law enforcement and security operations. Across its four vertically integrated business divisions – domestic training, international training, security services and logistics – the Company serves the U.S. Department of State, the U.S. Department of Defense, the U.S. Navy, numerous law enforcement and other government customers. USTC’s proven ability to provide turnkey, end-to-end training and technical services, along with its unmatched track record of exceptional performance, has enabled the Company to establish a competitive advantage well-recognized by its customers.
Contacts
Gibraltar Associates, LLC?John Procter, +1 202-534-1715
Story here.