Scandal reshuffles Serco executive ranks

Ed Casey, Serco Inc.'s outgoing CEO, thought he was going to run a new global initiative, but a scandal with Serco's U.K. parent has him taking on even greater responsibilities.

One week, Ed Casey is transitioning out as CEO of Serco Inc., the North American portion of the U.K.-based Serco Group, to take on a global initiative for the entire $8 billion company.

And then the next week, he’s put in charge of the whole shebang as the parent company’s current CEO Christopher Hyman resigned Friday as the company struggles under a pricing scandal for work it has been doing for the British government.

Casey, who was named chief transformation officer for global operations on Oct. 16, has now been tapped as interim CEO in the wake of Hyman’s resignation.

The company’s board of directors said it will be looking outside the business for a permanent CEO, but I’ve had sources tell me that even before Hyman’s resignation, Casey was on track to be the CEO. Whether the timing is right with this move remains to be seen.

For the U.S. operations, Casey was in the midst of a transition to Dan Allen, who was to become chairman and CEO in early December. That plan is now out the window, with Allen immediately assuming the responsibilities of the CEO post.

Serco Group ran into trouble in its home country over a variety of allegations including fraud in how it managed a prison contract, and over shortcomings in providing doctors for a health care contract.

Hyman said he was resigning to make it easier for the company to get out from under the scandal and restore its reputation. He has been CEO since 2002.

In addition to his resignation, the company has taken other steps such as dividing its U.K. and European businesses and adding more independent board members.