CEO's Outside Ties Choke Force Protection

OKLAHOMA CITY -- Force Protection's (FRPT Quote) CEO, already enriched by stock sales and a sweetheart insider deal, could be costing the company more than some people think.

Unlike other military vehicle makers, including chief rival Navistar (NAVZ Quote), Force Protection employs a leadership training guru --- rather than a proven manufacturing expert -- as its top executive. Gordon McGilton has pocketed millions of dollars from stock sales, on top of big payments to his consulting firm, during his two years at the helm.

On the surface at least, Force Protection looks like it might be getting its money's worth. Last year, thanks to huge contracts from the military, Force Protection evolved from a bleeding company -- slapped with a "going-concern" notice from its auditors -- into a profitable venture with phenomenal growth prospects.

But some feel that Force Protection has achieved that success despite, rather than because of, McGilton's leadership. If anything, some former insiders say, McGilton has actually held the company back.

McGilton's professional track record, including some troubling setbacks at Force Protection, lends support to those views. Notably, Force Protection has seen its market share for mine-resistant ambush-protected (MRAP) vehicles plunge with McGilton in charge.

"Force Protection had a terrific future as a business -- and this country had a terrific resource -- until McGilton came in and took over," says a former Force Protection executive. "He has been milking the company and using it as a huge experiment to test his business operating system ... It's just sheer madness."