CEO Rand Blazer Exits BearingPoint

However, a well-placed source told VARBusiness that the board felt it was time to move in another direction to increase the company's stock price faster than it had been. The stock has been hovering in the $8.50 to $9 range, significantly lower than the $18 at which it was trading when it went public in February 2001.

The source credited Blazer with shepherding BearingPoint (No. 24 on the 2004 VARBusiness 500) through three dramatic changes and doing so relatively successfully—taking the company public, rebranding the company in 2002 after it was spun off from auditor KPMG in early 2000 and, in 2003, acquiring a number of Andersen Business Consulting divisions and the Swiss consulting practice of the German division of KPMG, a move that expanded its international footprint.

"Blazer and the board felt it was time for new leadership," the source said.

And that new leader, for now, is Rod McGeary, who is serving as CEO and chairman while BearingPoint conducts a nationwide search for a permanent successor. He has been a member of the company's board since August 1999 and currently serves on its executive committee.

McGeary inherits a company that posted increased earnings for its third quarter -- $11.9 million, or 6 cents a share, up from the same period a year ago when the company lost $39.2 million, or a loss of 20 cents a share. Sales for the quarter climbed to $840.9 million against $743 million, with roughly $330 million derived from government business. McGeary's first order of business is moving that stock price north in the face of mounting competition from Accenture and IGS.

"BearingPoint appreciates Rand's service and contribution to the company while serving as chairman and CEO. His leadership has been instrumental in the growth of the company into a global organization providing clients with superior service and results in connection with their business systems needs," said McGeary in a statement.