Linda Wachner, successful but controversial ceo of The Warnaco Group (New York), was fired on Friday. The board of directors voted nearly unanimously to dismiss her without severance pay.
Warnaco is an apparel manufacturer that worked with such high-profile brand names as Calvin Klein Jeans, Chaps by Ralph Lauren and Speedo swimwear. It produced revenues of more than $2 billion at its peak, but filed for Chapter 11 bankruptcy protection earlier this year.
Although Wachner had been given most of the credit for the success of the former lingerie manufacturer, she was also criticized for her abrasive management style, for her reluctance to disclose Warnaco's increasingly precarious financial situation to stockholders and for her reluctance to trim her compensation package as things were turning sour. It was estimated that from 1993 to 1999, she earned $158 million in salary and bonuses.
Her public battle with Calvin Klein brought her unwanted personal attention in 2000, when the designer wanted to terminate his licensing contract with Warnaco. During the incident, Klein sued her and publicly called her “vile.”
Wachner will continue to sit on the Warnaco board of directors, because to unseat her would have required further legal actions.