Men's Wearhouse founder Zimmer clashed with CEO over exec pay

[Major Nikon]

Source: NBC News

Tensions started rising at Men's Wearhouse Inc over the past six months, as founder and executive chairman George Zimmer increasingly butted heads with his handpicked CEO over the clothing retailer's strategy.

CEO Doug Ewert wanted to sell the company's K&G Fashion Superstore business, while Zimmer wanted to keep it, two sources familiar with the situation said. Zimmer also objected to rising compensation for top executives, including Ewert, while the board thought it was appropriate, the sources said.

Zimmer, who is known to U.S. TV audiences for his advertising catch phrase "you're gonna like the way you look - I guarantee it," was seen by company directors to be undermining Ewert's authority, the sources said.

Last week, the Men's Wearhouse board abruptly fired Zimmer from the chairman's job, even as its share price had climbed about 50 percent in the past two-and-a-half years. The board, populated by some directors Zimmer has known for decades, told him of the decision the day they announced the firing, the sources said.

Read more: http://www.nbcnews.com/business/mens-wearhouse-founder-zimmer-clashed-ceo-over-exec-pay-6C10436067

[MrSlayer]

1. It's fucked up when a bunch of douchebags can take your own company away.

Zimmer sounds like he was an ok dude. Being an ok dude gets you nowhere in this greed driven society.

[kentauros]

8. I've read elsewhere on DU that he's a Democrat.

Maybe he can join up with CostCo and put what's left of The Mens Wearhouse out of business.

[marshall]

20. I assume he is still a major stockholder

He's not in charge, but still has a huge stake in the company.

[kentauros]

23. He can always sell that,

pair up with CostCo, and create their idea of a men's clothing store. It could work, and have happy employees

[christx30]

27. From what I read on CNN

He only has a 3.6% stake in the company. The board states he wanted to sell the company to private investors. They are painting him as greedy. It's hard to know what the truth is.

[XemaSab]

29. He's one of the biggest donors to democrats in CA

http://www.opensecrets.org/indivs/search.php?name=Zimmer&state=CA&zip=&employ=&cand=&c2012=Y&sort=N&capcode=52fj6

[kentauros]

30. Cool!

Thanks for the link
I wish him well wherever he ends up.

[Comrade Grumpy]

31. And to drug reform efforts. n/t

[Major Hogwash]

14. Agreed.

I always liked his commercials.
He was one hell of a spokesman for his company.

He seemed genuine, and in this plastic society we live in now, that was what I found appealing about his commercials.
I even bought a few suits from his company a few years ago, and I received damned good customer service from the people that worked there.

[abelenkpe]

17. "Being an ok dude gets you nowhere in this greed driven society."

So Very True.

[BeyondGeography]

2. Feeling validated in that I always found something likable about Zimmer

It's s shame that his type is so outnumbered in corporate world. What a bunch of flaming assholes.

[TlalocW]

9. According to my niece he is

She worked for Men's Wearhouse in Wichita, and there was some big to-do in Kansas City for a bunch of surrounding cities one year (I think a Christmas party) that he attended. He visited every table and chatted with everyone. She even got a dance with him. Totally nice guy.

TlalocW

[BeyondGeography]

12. Thanks for that...There's a way for this whole capitalism thing to work

But it does come down to people doing a wee little bit of sharing with their fellow human beings and convincing others at the ownership level to go along with it. Why this is so hard to achieve is our primary cultural failing, imo.

[freeplessinseattle]

18. My ex from 20 yrs ago worked there, and also met him at a party

When I heard that, I assumed he was local, but I guess being gracious and interactive with his staff is just the way he is!

[avaistheone1]

11. Unfortunately only the sociopaths last at the top.

Zimmerman had to go.

[louis-t]

21. Zimmer. We're all getting the name mixed up.

I wonder why?

[avaistheone1]

26. I just caught that and was coming in to make a correction

when I say your post. Dang! Evidently i confused George Zimmer with George Zimmerman.

It certainly was not my intention to mix these two people up.

[Renew Deal]

3. The greedy board only cares about their money

[brewens]

4. Now watch how quickly they loot that company and leave it in ruins. n/t

[Kolesar]

6. Stock options the new execs will get will probably plummet.

The company is obviously run like s--t if they ejected Mr. Zimmer.

[louis-t]

22. Might be a good time for Zimmer to sell his stock.

It will most likely go down in value from here.

[ctsnowman]

5. while the board thought it was appropriate

Well of course they did. They all serve on each others boards and vote each other raises. It's a rigged game.

Thanks for the post.

[Evasporque]

7. You vote for my pay increase, I will vote for yours...

CEO from one company sits on boards of others, they all vote for pay raises for CEOs...Zimmer bucked that and they got rid of him so the top execs can continue to extract $ from the companies they lead.

[Gidney N Cloyd]

10. I wonder if Zimmer's got some sort of non-competition clause that would stop him from either...

starting a new business or becoming spokesman for a competitor.

[alfredo]

13. So they fired him because he didn't want them to act like

Greedy assholes.

[Aristus]

15. I've been a loyal Men's Wearhouse shopper for about twenty years.

I'm thinking of switching to Nordstrom, and writing a letter to those greedy assholes telling them why.

I worked for MW for about a year, and I met George Zimmer at the Christmas party. He is a decent, stand-up guy, and pretty progressive, too.

I don't see any point in giving my money to the company any longer.

[LanternWaste]

24. Me too. Every suit I own came from Men's Warehouse...

Every suit I own came from Men's Warehouse. The company received an email from me this weekend letting them know I would be getting my suits from Dillard's from now on, and letting them know why.

[kelliekat44]

16. Never buy from them again! nt

[heaven05]

19. sounds

like a 'meet joe black' type of scenario, to me.

[DCBob]

25. This is how good people in executive roles are forced to toe the line or forced out.

Its sickening.

[Betsy Ross]

28. George Zimmer supported the legalization of medical marijuana in California.

He spoke about his mother's illness and belief that marijuana could ease her symptoms.

Nice to read the personal stories that really show what a good guy he is.