Convergent appoints former Avici CEO to top post

Convergent Networks today announced Surya Panditi as its president and chief executive officer. Panditi, most recently the chairman of Avici Systems, replaces John Thibault, who is leaving for personal reasons, according to a Convergent spokeswoman. Thibault will continue as chairman of Convergent’s board of directors.

Convergent also announced that Mike Dagenais, a 25-year veteran at Lucent Technologies and Nortel Networks, would join the company as vice president of engineering. Dagenais most recently served as vice president and general manager of Lucent’s InterNetworking Systems core switching division.

Panditi was chosen for his track record at Avici and “his outstanding abilities” in developing the company and taking it public, said the spokeswoman. Convergent was not concerned that Avici’s stock price has plummeted from $19.75 per share a year ago to $3.04 today (in early afternoon trading), she said.

“A lot of stocks have hit the skids, and [Avici’s decline] isn’t a reflection of his management expertise,” she said. “It’s just where the telecom industry is today. It’s a bloodbath. … You can’t hold management responsible for an industry that’s going through some tough times.”

One industry analyst who requested anonymity said Panditi left Avici because his influence had diminished: “[President and CEO] Steve Kaufman is basically running the show right now at Avici, so what is [Panditi] doing there? He’s been sitting on his hands, so it’s not surprising he’s going to go do something else.”

However, Panditi will continue as chairman of Avici’s board of directors indefinitely, said Convergent’s spokeswoman, who added the somewhat unusual arrangement only signals Panditi’s commitment to Avici and not the beginning of a closer relationship between the companies in the future. She said Panditi “feels comfortable holding both positions,” because of Avici’s strong management team.

“He won’t be involved in the day-to-day operations there … and doesn’t feel that it will be a conflict,” she said.