Zimmer Ousted over K&G Disagreement

According to sources familiar with the situation, George Zimmer, the deposed executive chairman of Men's Wearhouse Inc. (Houston), had difficulty within the company he founded beginning with intentions by ceo Doug Ewert to sell the K&G Fashion Superstore subsidiary.

Zimmer, who wanted to keep K&G, also objected to rising compensation for top executives, including Ewert, the protégé he had brought into the company. Zimmer picked Ewert as his successor two years ago and the two shared offices next to each other.

Ewert was awarded a base salary of $1.25 million for the current year, more than double last year's figure, and a potential annual bonus of up to $1.25 million and other incentives.

The Zimmer family holds a combined equity stake of about 4.7 percent in the company – Zimmer himself holds about 3.5 percent – which is not considered large enough on its own to pressure the company to allow him to return.

He also has no provision in his employment contract that compensates him following the ousting, though a licensing agreement will award him $250,000 for each of the next four years if Men's Wearhouse continues to use his image in advertising.