PITTSBURGH, July 27, 2012 /PRNewswire/ -- Education Management Corporation (NASDAQ:EDMC) announced today that John R. McKernan, Jr., will step down as Chairman of its Board of Directors, effective August 15, 2012. He will remain a member of the Company's Board of Directors. Mr. McKernan has served as the Company's Chairman since June 2006. He was Chief Executive Officer from 2003 to 2007. The Board of Directors has named Todd S. Nelson, currently Chief Executive Officer, to succeed Mr. McKernan as Chairman of the Board of Directors, while Edward H. West, currently President and Chief Financial Officer, will become the Company's new Chief Executive Officer. Mr. Nelson has been Chief Executive Officer since February 2007, and Mr. West has served as Chief Financial Officer since June 2006 and President and Chief Financial Officer since December 2008. Randall Killeen, the Company's Vice President – Controller, will serve as acting Chief Financial Officer upon Mr. West's appointment as Chief Executive Officer. Mr. McKernan said, "This is the right time for Todd Nelson to be appointed Chairman, and Ed West to be named CEO, and we have long planned for this potential succession. I am looking forward to continuing my involvement with EDMC as a member of the Board." Mr. Nelson said, "We thank Jock for his many years of strong leadership to the Board as our Chairman, and I am excited for the future of EDMC with Ed's leadership as CEO. With these changes in management, we remain confident that EDMC retains the experienced leadership necessary to continue to address the opportunities and challenges in private, post-secondary education. As always, we stand by our commitment of preparing students well for their chosen careers – our mission, which is respected across the higher education community."
After meteoric growth in the '90s, for-profit colleges have come under intense government scrutiny that's sent shock waves through the industry. Just ask Corinthian College, Education Management and Career Education.