- After selecting our CEO, Doug Ewert, and several of the key management team members that have effectively been running the company for many years with great success, Mr. Zimmer eventually refused to support the team unless they acquiesced to his demands.
- Mr. Zimmer expected veto power over significant corporate decisions. Among them was executive compensation despite the fact that we – as required of a public company – have an independent committee of the Board that sets policy in this area.
- After initially supporting the review of strategic alternatives for K&G as proposed by management and supported by the Board, Mr. Zimmer reversed course. Despite Mr. Zimmer's objection, the Board and management remain committed to the K&G review process.
- Mr. Zimmer reversed his long-standing position against taking the company private by arguing for a sale of the Men's Wearhouse to an investment group. The Board believes such a transaction would not be in the best interests of our shareholders, and it would be a very risky path on many levels. It would require the company to take on a huge amount of debt to pay for such a transaction. The Board strongly believes that such a transaction would be highly risky for our employees and would threaten our company culture that is so important to all of us.
- The Board is unanimously of the view that now is not the time to sell the company. The Board is committed to a strategic plan carefully developed by CEO Doug Ewert and the rest of the company's experienced management team, which we all believe will maximize long-term value for all shareholders.
Men's Wearhouse Board Of Directors Provides Further Comments On Termination Of George Zimmer
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