Cruttenden Roth’s President-to-Be Changes His Mind
Five weeks after naming a new president, Irvine-based Cruttenden Roth & Co. on Monday found itself still in need of an executive to run its day-to-day operations.
Patrick J. Allen, who last month announced that he was leaving Hambrecht & Quist Group to become Cruttenden’s president and chief operating officer, said Monday he will remain at the San Francisco investment banking firm as chief financial officer.
The 36-year-old Allen said that he changed his mind after talking up Hambrecht’s prospects to several potential successors. Allen was still at Hambrecht working as a consultant and searching for his own replacement.
Heavy lobbying from Hambrecht Chairman Daniel H. Case III contributed to the decision.
“There are big opportunities Hambrecht & Quist has in front of it, and I can have a chance to be a big part of the management team,” Allen said.
Aside from spending several hours at Cruttenden’s Irvine headquarters recently, Allen never started his new job at Orange County’s largest investment banking firm.
“Although unfortunately I moved all my stuff and sold my house,” Allen said.
He said his decision to stay at Hambrecht was not tied to learning anything negative about Cruttenden. “It’s not like I picked up a rock and found something under it that sent me away.”
Allen declined to discuss the compensation he would receive for remaining at Hambrecht, including whether any promises were made about future positions at the company.
Hambrecht is the largest independent investment banking firm in the West. It specializes in underwriting technology companies.
Cruttenden executives last month had hailed Allen’s arrival as the completion of a management restructuring that saw the departure of founder Walter W. Cruttenden III.
“I am personally very disappointed,” said Byron Roth, Cruttenden’s chief executive. “Pat was a tremendous asset to Hambrecht & Quist and would have been a tremendous asset to us. He was obviously someone they didn’t want to lose, and they were successful in bringing him back. I don’t blame them one bit.”
Allen’s hiring would have allowed Roth more time to market Cruttenden and its services, which include finding small privately held companies to take public. Roth said Monday that the firm will resume its search for a day-to-day executive.
Allen was chief operating officer at Cruttenden Roth from 1993 to 1995. Before that, he worked at Kemper Securities Corp., Bateman Eichler and Price Waterhouse.
Hambrecht & Quist shares rose $1.81, to $24.25 in New York Stock Exchange trading.
