CEO or OEC (Ongoing Executive Consultant)?
Mitt Romney-Bain Capital Contacts Outlasted Exit
By STEPHEN BRAUN and JACK GILLUM 07/25/12 02:48 PM ET
WASHINGTON — Republican presidential candidate Mitt Romney has said he had no active role in Bain Capital, the private equity firm he founded, after he exited in February 1999 to take over Salt Lake City's Winter Olympics bid. But according to Bain associates and others familiar with Romney's actions at the time, he stayed in regular contact with his partners over the following months, tending to his partnership interests and negotiating his separation from the company.
Those familiar with Romney's discussions with his Bain partners said the contacts included several meetings in Boston, the company's home base, but were limited to matters that did not affect the firm's investments or other management decisions. Yet Romney continued to oversee his partnership stakes even as he disengaged from the firm, personally signing or approving a series of corporate and legal documents through the spring of 2001, according to financial reports reviewed by The Associated Press.
The details of Romney's contacts with his Bain partners between his 1999 departure and his separation from the company in mid-2001 could show how involved he was – either as CEO or passive investor – in several multimillion-dollar investment deals, bankruptcies and a spate of layoffs and overseas job shifts at Bain-owned companies that reportedly occurred during that span. Romney's role became a campaign issue in recent weeks because corporate records from the time showed his interests in some of those deals – despite his insistence that he gave up any decision-making authority once he left Bain.
"When partners depart a private equity company and are no longer active, there are various ways that their interests may be affected," said Colin C. Blaydon, director of Dartmouth University's Center for Private Equity and Entrepreneurship. "In some cases it may not be affected at all, but they still own points in the funds and the carried interest that is paid as part of their partnership stake. It's entirely possible to step back from a previous management role, but that all depends on the arrangements they make and the management structure created to replace them."
(More here.)
By STEPHEN BRAUN and JACK GILLUM 07/25/12 02:48 PM ET
WASHINGTON — Republican presidential candidate Mitt Romney has said he had no active role in Bain Capital, the private equity firm he founded, after he exited in February 1999 to take over Salt Lake City's Winter Olympics bid. But according to Bain associates and others familiar with Romney's actions at the time, he stayed in regular contact with his partners over the following months, tending to his partnership interests and negotiating his separation from the company.
Those familiar with Romney's discussions with his Bain partners said the contacts included several meetings in Boston, the company's home base, but were limited to matters that did not affect the firm's investments or other management decisions. Yet Romney continued to oversee his partnership stakes even as he disengaged from the firm, personally signing or approving a series of corporate and legal documents through the spring of 2001, according to financial reports reviewed by The Associated Press.
The details of Romney's contacts with his Bain partners between his 1999 departure and his separation from the company in mid-2001 could show how involved he was – either as CEO or passive investor – in several multimillion-dollar investment deals, bankruptcies and a spate of layoffs and overseas job shifts at Bain-owned companies that reportedly occurred during that span. Romney's role became a campaign issue in recent weeks because corporate records from the time showed his interests in some of those deals – despite his insistence that he gave up any decision-making authority once he left Bain.
"When partners depart a private equity company and are no longer active, there are various ways that their interests may be affected," said Colin C. Blaydon, director of Dartmouth University's Center for Private Equity and Entrepreneurship. "In some cases it may not be affected at all, but they still own points in the funds and the carried interest that is paid as part of their partnership stake. It's entirely possible to step back from a previous management role, but that all depends on the arrangements they make and the management structure created to replace them."
(More here.)
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