The Combat Operator

Change of command at Xe

Mar 2, 2009 Commentary, Industry News, Jake's Posts

By Jake Allen

As you will likely have read Erik Prince has decided to step down from his duties as the day-to-day CEO of Xe (formerly Blackwater Worldwide).

I have to admit I was a little surprised to hear this coming on the heels of the recent rebranding. To make the announcement now seems a little disjointed, in my opinion, as it should have been bundled with the name change in a single news story. But, regardless of the timing I support the decision and if you’ve been reading TCO for a while and listening to Combat Operator Radio you will know that both the rebranding and the management changes, particularly at the middle levels, are something I have recommended for a while. Simply because over time the company’s external image was tied too much to Prince and his long time business partner Gary Jackson when in truth the company needed to show the depth of its bench. Jackson will also apparently step down from his role as president.

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Founder, CEO of Blackwater Steps Aside, ‘Worn Out’

Mar 2, 2009 Industry News

By AUGUST COLE

Wall Street Journal

Erik Prince, who founded security contractor Blackwater Worldwide and remained defiant after the company became embroiled in controversy following a deadly 2007 shooting incident in Baghdad, is stepping down as chief executive of the parent company.

The 39-year-old Mr. Prince will retain his post as chairman but move away from daily oversight of the company he started 11 years ago. The closely held venture earned more than $600 million in revenue last year, with about a third of that coming from a major U.S. State Department contract to protect diplomats in war zones.

“I’m a little worn out by the whole thing, the politics of it all,” Mr. Prince said during an interview at the company’s headquarters in McLean, Va. “Me not being part of the equation reduces the ‘X’ on the thing.”

The move comes at a turning point for the security industry. The Obama administration plans to withdraw most U.S. combat troops from Iraq by next summer and the Iraqi government is assuming legal authority over Defense Department and State Department contractors.

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