Carbo Boots CEO After Probe

Carbo Ceramics(CRR Quote) said its chief executive resigned after an investigation into his relationship with a female employee. The company named its former CEO to take over on an interim basis.

Mark Pearson, who was also the president, resigned "following an investigation of the facts and circumstances surrounding a personal relationship between Dr. Pearson and a female employee of the company," Carbo said. "The company's investigation did not reveal any effect of the relationship on the company's operating or financial results."

Jesse Orsini, who was president and CEO of Carbo from 1978 to 2001, was renamed to those posts on an interim basis. William Morris remains chairman.

"Mark Pearson has been an important contributor to the growth of Carbo Ceramics during his 8-year tenure with the company, and we are saddened by the circumstances of Mark's departure," Morris said. "But our business is excellent, our employees are committed and our prospects are strong. We are fortunate that Mr. Orsini has agreed to return to a leadership role while the board conducts an orderly search for a new chief executive."

The stock closed at $61.42 Thursday.