Investors dumped shares of ITT Educational Services Inc. on Thursday morning as the company remained mute on its year-end
profit forecast while announcing that its bad-debt expenses were rising faster than revenue.
CEO Kevin Modany and his management team have become accustomed to regulatory uncertainty—and to growing the business
at a pace most executives can only dream about.
Seven Martin University trustees have resigned this year, and at least two say President Algeania Freeman’s methods were a factor.
ITT Educational Services Inc. and other for-profit schools are facing a maelstrom of financial threats that analysts say could
hurt student recruiting and profit margins–and already has driven stock prices down sharply. ITT shares are off 61 percent
since hitting an all-time high of $131.82 in November.
Kevin Modany, CEO of ITT Educational Services Inc., carries an iPod and downloads drum solo videos from YouTube. But when
Modany, a young-looking 40-year-old, talks about ITT’s 35-percent increase in first-quarter profit, he comes across as savvy
and confident of his ability to take the post-secondary education provider to even greater heights.
Two years after Michael Shapiro was hired as dean of the business school at the University of Indianapolis, three current
and three former U of I professors have filed a grievance against Shapiro, alleging that he has created a hostile work environment.
