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.” (more…)
