Compass Diversified Holdings (CODI), which owns CamelBak Products and mountain bike components maker Fox, named a new CEO Friday to replace one who has been on a leave of absence pending an investigation by the Securities and Exchange Commission.
“During his tenure as CEO, Alan has demonstrated strong leadership, as the company has continued to successfully execute its strategy,” said Sean Day, CODI’s chairman. “Since February 2011, we have completed three acquisitions and profitably sold two subsidiary businesses. We also completed a $545 million refinancing of the company’s existing debt at favorable rates. With disciplined investing and a strong balance sheet, CODI remains well positioned to capitalize on favorable growth opportunities to enhance future performance and provide shareholders with attractive distributions.”
Massoud’s resignation follows an SEC announcement Friday that it had settled its complaint against him stemming from a 2009 stock trade. The complaint filed in 2009, alleges that Massoud used inside information to purchase stock in a company Compass Group had bid on and then sold it for $676,000 in “ill-gotten gains.” Massoud agreed to settle the SEC's charges by paying more than $1.4 million, or roughly twice the profits he earned on the sale of the stock. He also will be barred from working in the securities industry or serving as an officer or director of a public company. The settlement is subject to court approval and Massoud has neither admitted nor denied the SEC’s claims, according to CODI.
In addition, CGM has informed the company that Massoud intends to step down as its managing member. Elias J. Sabo, a founding partner of CGM, will replace him in that capacity.
“It is with deep regret that the Board accepts Mr. Massoud’s resignation,” said Day. “We would like to thank Mr. Massoud for his service. He was instrumental in founding CODI in 2006, and gave us five years of strong and successful leadership. We wish him all of the very best in his future endeavors.”
