Two high-level Fountain officials jump ship
Published 9:57 am Friday, November 14, 2008
Board member and treasurer leave the company
By GREG KATSKI
Two more high-ranking Fountain officials have abandoned ship.
Anthony A. Sarandes, a member of Fountain Powerboat Industries’ Board of Directors resigned from his post on Oct. 27, while the board’s secretary and treasurer Roger F. Scott’s employment was terminated on Nov. 3, Irving Smith, the company’s chief financial officer, said in a written statement.
Scott also served as secretary, vice president and controller of the company’s subsidiary, Fountain Powerboats. In Scott’s role as treasurer, he served as the company’s principal accounting officer, said Smith in a written statement.
With the termination of Scott’s employment, the company has lost its president, vice president, treasurer, secretary, controller and a member of the board in a matter of less than three months.
On Oct. 31 and Nov. 3, Fountain laid off a total of 70 employees. Prior notification was not given to those laid off, according to Carol Price, director of human resources for the company.
Among those laid off were individuals in high-level positions, said Fountain CEO Reggie Fountain.
On Nov. 5, the company received a second notice from the NYSE Alternext US, successor to the American Stock Exchange, that it was not in compliance with one of the Exchange’s standards for continued listing, and was in danger of being delisted.
The fallout of high-level employees started on Aug. 20, when former Fountain President R. David Knight resigned from his position.
At the time, Knight said that he felt comfortable resigning from his post because “the company is poised for more profit potential.”
Sarandes, 61, said he was on Fountain’s Board of Directors for about a year.
He said Fountain CEO Reggie Fountain Jr. personally asked him to join the board.
Sarandes is a 10-year veteran of powerboat racing and sponsored Fountain at races for four years before joining the board.
He cited the main reason for resigning as the company’s weakening commitment to powerboat racing.
Sarandes, a resident of Ocala, Fla., said he also resigned to concentrate on other business ventures.
As a result of Sarandes’ resignation, the number of members on the board has been reduced to six. A new member will be elected to Sarandes’ seat at the company’s annual board of directors meeting on Nov. 18.
Of his relationship with Reggie Fountain Jr., Sarandes said, “We’re still very good friends.”
Scott served for over a year and a half as the company’s secretary and treasurer.
He was personally elected to the position by the board and Reggie Fountain Jr. on April 11, 2007, said Smith in a written statement.
At the time of the written statement, Scott was 45 years old.
He was first employed with the company as controller of Fountain Powerboats in March 2005, and appointed as vice president in March 2007, said Smith in the statement.