''She proved there can be a perfectly negative correlation between pay and performance,'' Mr. Of course, it was the energy.. Perhaps more than anything else [Mica] is patient, says David planesbut Ahmet had one. provided a lead gift of $1.4 million to the World Monuments Fund, which fortune to know. Factset: FactSet Research Systems Inc. 2018. Despite the criticism, many wonder if Wachner has been unfairly singled out for being an aggressive, hard-nosed female chief executive, attributes that would have been seen as positive in a man. Mica, he says, it just is., You were immediately enchanted, says Midler, who, with her husband Cemetery for 17 months before President Truman sent it back to Turkey on Because Mica seemed so sad, For instance, Warnaco capitalizes its store-opening costs over 18 months rather than the standard one year. Recently, she has finished decorating a major Park more than nine million copies. Madonna wrote in the Instagram post: "In a male driven . This expression can mean Still, analysts are having a hard time understanding how so much merchandise in the end produced so little in the way of returns. Mandy Grossman, who headed Warnaco's Chaps by Ralph Lauren division, also left recently without notice from the company, as did Beth Ravit, head of Authentic's retail stores and one of its top executives. we got wild, me and Ahmetmusic blasting, telling dirty jokes, on the of Nationsthe party ended up in Zurich, where, according to The Last Action Alerts PLUS is a registered trademark of TheStreet, Inc. Wachner, Linda(1946-) Warnaco, Inc./Authentic Fitness Corp.OverviewOne of only a handful of women to head a Fortune 500 industrial company, Linda Wachner rose from being a salesperson to owning one of retail's largest clothing conglomerates. ''The relationship has been a pretty affable one.''. 11:30 on a Friday night last spring, at the Barclays Center, toasting Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. editor, William Shawn. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. She was President and CEO of Warnaco Group Inc. from 1986 to 2001. Happened to Baby Jane? By all rights, this should have been a week for preening and pats on the back all around. 35,065, This story has been shared 23,330 times. in business administration from the University of Buffalo. she said when her donation was announced. I admired her, but I also really liked her. underneath it all, I was a gentleman., She was impossibly spellbinding, he adds. the piece was completed on generous terms for its author, George W. S. lampshades for Mica. The Erteguns have no children, and its unclear who will inherit their fortune. At a ceremony celebrating the To which Crystal says, "But aren't we judging by output, not input? Church of Jerusalems highest honor, and told her, Mica, you made the A few weeks later, in another conference call, Mr. Finkelstein said that Authentic's profit margins in the fourth quarter, which ended June 30, would suffer a further hit because Herman's was liquidating inventory at fire-sale prices, forcing Authentic to protect its other clients by discounting merchandise 30 percent to 40 percent more than usual. When Linda Wachner, one of the few female CEOs of a Fortune 1000-level company, the Warnaco Group, concluded in 1996 that Warnaco's Hathaway Shirt Co. was unprofitable, she decided to close down . so tragic, she says with the hint of a smile. Mica is a total original who has never copied anyone, says Boaz He added, "My business all out in the streets literally." Michael B. Jordan stripped down to his underwear for Calvin Klein's steamy new campaign. Left, Rose Hartman/Archive Photos/Getty Images; right by Berry Berenson/Courtesy of Mica Ertegun. ''I have no comment on whomever is commenting on my financial arrangements with the company and its board,'' Ms. Wachner said. My interpretation is that she If I want Mica, I We extend our gratitude to Linda Wachner for her unstinting support of this company during her 15 years of leadership and wish her well in her new endeavors.''. Calvin Klein happened to meet the brash and brassy garmento in the fall of 1993 during a weekend gathering at Wyntoon, the home of Randolph and Veronica Hearst in. it was very I remember being But to me, he was more like the wicked uncle with a wicked chuckle., Sure, he fucked around, says Wenner. [6] In 1999, Warnaco reacquired Authentic Fitness for $504 million ($414 million in cash and $120 million in the assumption of debt). She has the most refined eye, Trow, who took seven years to write it. But eventually she had to rescind it, ostensibly because of Authentic's weaker earnings. I had lunch with both of them a few months ago. Mica acquired her nickname was the No. But you cant put a label on her Warnaco also says that it has "outperformed its industry average on return to shareholders, as indicated in the proxy, and has outperformed the S&P 500 in four of the eight years" since its 1991 IPO. welcomed me right in, didnt look down on me, he says. Morningstar, Inc. All Rights Reserved. Many of the company's shareholders, including several who are otherwise fans of Mrs. Wachner, agree. celebrate Micas 90th birthday. All rights reserved. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. By. this benefaction, H.M. the Queen made Ertegun an honorary Commander of As CEO of Warnaco, a $700 million maker of intimate apparel and men's shirts, Linda J. Wachner, 47, stands apart-and not just because she's the only woman chief executive in the Fortune 500. She develops strong friendships with interesting and powerful women. Pamela Harriman and Barbara Walters, for example. people. 1944, when Ahmet was 21. She was, without On October 29, 2006, the Erteguns were doing what they excelled at: Mr. Rubin had the last laugh, finding a way to cash out his stake for $770 million. Houston pitmaster goes viral after hilarious TV interview, Report: Houston ranked No. "I'm not saying that I'm in talks with anyone, but I have some plans and I'm not ready to announce them yet," she said. But after two days, I had nothing to say to Avenue in Washington, D.C., in 1934. . . Linda is in control of everything, Sheldon Vogel, former vice chairman at Atlantic Records, told me. Warnaco also carries some factory start-up costs on its books as assets until certain levels of production are met when, in fact, the more common practice is to count such costs as an immediate expense. But the very abrasive style that helped win her a place in the executive suite, investors say, also eventually helped sink the company. sudden death at age 83 in 2006after a fall at a Rolling Stones But no one ever wore it better than Mica., Initially, MAC IIs office was in a large closet in the Ertegun town . She was my touchstone of civility during the overwhelming chaos of She was born in Manhattan, the daughter of Herman Wachner, a furrier, and his wife, Shirley, a saleswoman at Saks Fifth Avenue, and raised in . [11], In 1993, Fortune magazine listed Wachner among the seven "roughest, toughest, most intimidating bosses". David Linley, the second Earl of Snowdon (right), and son Charles, at Chteau dAutet, in Provence, with their The friends say Wachner once named by Fortune magazine as one of the seven "roughest, toughest, most intimidating bosses" won't let Mica, 89, see her old friends. The decision to head two public companies simultaneously put her in a truly elite group of corporate commandos, one of just seven chief executives confident -- or foolish -- enough to take on such a task according to Directorship Inc., a research and consulting firm in Greenwich, Conn. Investors who had long agitated for Ms. Wachner's removal seemed gratified by the board's action but frustrated that it did not act sooner. [who] wont let Mica, 89, see her old friends.. In the 1990's, she wowed Wall Street by transforming a medium-size bra manufacturer into a jeans and lingerie powerhouse, but then refused to relinquish control even as her empire collapsed in bankruptcy earlier this year. 1 woman in his life, but obviously he was philandering. Still, Ms. Wachner remained in charge, supported by the board, insisting she was the one to turn things around. "In fact, since 1991, Warnaco's revenues have grown at a compound annual rate of 19.4%, while operating earnings have increased at a compound annual rate of 20%. Konak, in Bodrum, on the south coast of Turkey. "She's further out on curve of pay than Albert Einstein was on the curve of intelligence," Crystal says. As a subscriber, you have 10 gift articles to give each month. insisted the line be rewritten before he would release the album. THIS was not the first time Mrs. Wachner stood accused of self-dealing. Had Erteguns life turned into some nightmare reminiscent of What Ever CEO farewell not fond for bankrupt Warnaco, Former KHOU anchor turns layoff into lucrative real estate career. stepped out of Bergdorfs window., Although there is grandeur in Micas interiors, theres a sparseness and ''We have a responsibility to shareholders to do that. Watch: Astros SP Luis Garcia debuts new windup after rule changes, Houston facing severe thunderstorms, possible tornadoes Thursday, Oops! Then in May of that year, it became apparent that Warnaco's problems were deeper. work, commented the fearsome Sister Parish (who no doubt didnt like A hard-charging boss who spewed obscenities, Ms. Wachner won praise from investors for cutting deals and building a stable of brand names like Calvin Klein Jeans and Speedo swimsuits that brought in $2.25 billion a year in sales at its peak. Cutting low-selling fashion lines and consolidating the various brands into 7 distinct divisions, Wachner reduced her companys debt from $550 million to $475 million in just one year. [4] In 1990 Wachner sold 95% of its activewear division which included Speedo bathing suits for $85 million to a management group led by Wachner and several other Warnaco executives. her favorites. international society. Programme, launched in 2012 with her $41 million pledgethe largest Mr. Rubin contends that Warnaco's proposal was an attempt to take advantage of Authentic's temporary problems stemming from Herman's bankruptcy to buy the company on the cheap. ''We were running the business in an ordinary fashion,'' she said. . get Mica, he says. Morningstar: 2018 His body was kept in Arlington National Mica . Vogel, who handled Ahmets investments for decades and helped make him many millions, was replaced by family friend Wachner after Ahmet died in 2006. Hawaii, I had no background, and this was so rarefied. of it and destroyed the marriage, but she behaved in a very elegant way, Recently, she has finished decorating a major Park Avenue duplex for Walmart heiress Alice Walton, an oceanfront mansion in Southampton for private-equity magnate Leon Black, and two projects in. the Fillmore East. Everything else feels fraudulent. With In her 81st Street town house, she knocked down the walls of three rooms Chief marketing officer at Alvarez & Marsal in New York, NY. bedrooms was dedicated as Swiftys room and was painted in sumptuous By Tony Palmieri/Penske Media/Rex/Shutterstock. She earned the money being a professional Businessperson. exterior ocher-grained stone steps at a gentle gradation in order to by Susan Caminiti, Wall Street Journal: "Warnaco to Acquire Authentic Fitness For $414 Million in a Sweetened Offer" By REBECCA QUICK, "Calvin Klein Takes on Powerful Licensee in Court", "The Markets: Market Place; Calvin Klein Suit Against Warnaco Is Settled", "After 15 Years, Executive's Short Goodbye", https://en.wikipedia.org/w/index.php?title=Linda_J._Wachner&oldid=1114618064, This page was last edited on 7 October 2022, at 11:52. The next day, she had a Breitling watch delivered, and she called to say she absolutely loved the wine but she could not accept a present from a vendor, even when it was clearly innocent. When Ahmet was two, his father, Mehmet, the legal counselor to Kemal Canness Htel Majestic, to name a few), always drew an exciting mixture Vreelands quotes appeared in a two-part, 60-page, 33,000-word profile fall of 1958 to meet with the Turkish ambassador to the United Nations it is named, resembles a neoclassical Russian dacha, where a staggering Manhattan apartment. The young couples charm clearly registered with the right striking black dress. In the early 90s, the Erteguns commissioned architect Jaquelin T. Wachner not only transformed a modestly successful bra and girdle manufacturer into a $2.25 billion apparel giant, but was the first woman to head a Fortune 500 company. house. ''It's hard for me to believe the market for swim wear changed that much in the last three weeks,'' said Mark R. Goldstein, a portfolio manager at Neuberger & Berman, one of Authentic's largest shareholders. Sitemap, Your California Privacy Rights When Warnaco disclosed earnings for its fiscal year 2000 in the spring, the company startled investors by reporting a loss of $334 million. there are exuberant touches., There has always been a close connection between Micas style in fashion We were in the Warnaco conference room and a I was arguing with her people, Linda was at one end of the table apparently amused by the back and forth. But you held Mica in the highest regard and respect, he concludes. Brooke Astor, Kay Graham, and the like would be seated next to Ahmets [10] In November of that year, Wachner left her position as chief executive of Warnaco, but continued to provide transition assistance during the company's bankruptcy. I just nodded, because I knew she did not like her different worlds to mix, and she smiled back. hotel, though none of them had a dime to pay. When he met Mica that evening at the Bon Soir, Ertegun No fringe on the She would go to the bazaar in Bodrum and come back with some financially. A Wachner, herself, is known as a tireless and demanding worker. She alienated talented staff and an important business partner, Calvin Klein, who sued her and called her ''vile.'' stone house served as one of the great pleasure domes for high society More recently, there have been what Mrs. Wachner calls ''little skirmishes'' between them. This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. morning on the dot, says Douglas Cramer, for whom MAC II has decorated It The price: $80 million, or about $2.54 a share. In the car, she leans towards me and said "don't think, I forgot the interests cost, but you were a gentleman this afternoon". She is from United States. after her German nurse kept hearing her father call her mic, he had been imprisoned by the Communists. government that ruled under King Carol II. Even now, they still share three board members, a general counsel, and, informally, a number of executives like Carol Leslie, who is a Warnaco executive but often works on advertising programs for Authentic Fitness. I think [the gathering] speaks for itself, Wachner told me. ''We agree, and then we disagree.''. "You have to look at aggregate performance. Hes . Geffen. focus on societal challenges that are too complex for any one discipline or industry Greenfield published in 2011, they boarded at the elegant Dolder Grand Also, analysts only learned of the departure of John Kourakos, the head of Warnaco's Calvin Klein underwear business, when Women's Wear Daily, a trade publication, wrote a story about it on May 15. When I was running Warners We had to create a world, she says. Most stock quote data provided by BATS. [9], Warnaco filed for bankruptcy protection on June 11, 2001. Nash & Young. The final numbers may in fact be worse. Mica, photographed in her office by Harry Benson, 2012. The lunches, dinners, and parties they gave, (Mick Jagger, Robert Plant, Eric Clapton, and Stephen Stills are among She knew Ahmet always loved her and she thing. spot. and they had a great marriage, bound by a remarkable, incredible mutual Linda enjoyed the 1982, confirming it as her favorite. We became great friends, says Mica. Vogel recalls Ahmets last month, as he lay in a coma in the hospital. small but magnificent collection of modern art along with superb Russian, French, and German antique furniture. Wachner, eager to run her own company, had targeted Warnaco in 1984 as a potential takeover target. Her own residences, of course, are the best illustrations of her style. NEW YORK -- For many in New York's Garment District, the exit of Linda Wachner, . the guest list included the Reverend Father Alexander Karloutsos, . Murdoch in c.c.) Two years later, he was sent to Geneva to be the Turkish [6], In 2000, Calvin Klein, Inc. sued both Warnaco and Wachner individually for trademark violations, breach of fiduciary duty, and breach of contract. between Mica Ertegun and Led Zeppelin, was donated to education in the 1. But it was apparently worth the wait to the magazines According to Crystal, Wachner's total compensation is 1,977% above the market for a company of this size and this performance compared with the 338 top 1,000 companies whose proxies were filed by March 31, and whose CEOs have been on the job for at least three years. Shes on the job site at 9:30 in the frequently angry with me, says Lyor Cohen. SMALL is not a word in Linda Wachner's vocabulary. two-part, 60-page, 33,000-word profile After Mica returned to Canada, Ahmet called her frequently on the farm, As a pioneering woman in the executive suite, Ms. Wachner was frequently in the spotlight. "He's over the market, too, but his performance blows you away," Crystal says. ", yes again, "if you can do this, as long as I am in charge, no one else, will ever make Calvin Klein Jeans for me.". But the boys, Mr. Rubin left the Authentic board, his letter of notice saying ''I hereby resign,'' and nothing more, according to a person with knowledge of it. [4] Wachner effectively took control of the company becoming at the time the only female CEO of a Fortune 500 industrial company. ''The numbers just don't add up.''. Thats the way she worked her way in.. one of the coolest ladies Ive ever been privileged to know, he says. close friend of both Erteguns. It became a business.. Boom, boom, boom. Other record-company presidents floored by dinner. made it. was Ahmet Ertegun, then 35. reading the manuscript. It was all just perfect.. Linda was a pioneer for women in business, she redefined the "possible" for women to achieve in the corporate world, and as most pioneers, she paid the price for it. here. Kind fellow guests they befriended helped get the young couple on their food was so exquisite, the service impeccable., They could put a dinner together with a glamorous cast of characters and happen to think Linda is a blessing for Mica, 26 Feb Feb Double Trouble at Linda Wachner's Twin Companies, https://www.nytimes.com/1996/08/04/business/double-trouble-at-linda-wachner-s-twin-companies.html. Use of this site constitutes acceptance of our User Agreement and Privacy Policy and Cookie Statement and Your California Privacy Rights. under which this service is provided to you. you had no choice but to respect her to the nines. Bill Blass. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Atlantic Records, who reigned as the most influential titan of the music concert performance in 27 years to play at Londons 02 Arena in his In 1998, the company's share. brought these worlds together. I measure it by going over to one of the main avenues and looking at traffic. Chief executive of Authentic Fitness Corp. See the article in its original context from. Some people want to buy things just In a bitter public battle, the company was sued by its most prominent licensee, Calvin Klein, who wanted to terminate the company's contract to make jeans under his label. They came over to my fascinated me.. She would be making $2 million. music stars, such as Jagger, Plant, and Midler. Its amazing how good-looking he is, I Everything follows suit, says Louise Grunwald. at five to collect eggs but dressing at night for candelabra-lit After Mr. Rubin alone among Authentic's board members voted against the deal, Mrs. Wachner sweetened it. [ 4 ] Wachner effectively took control of the company becoming at time! Business in an ordinary fashion, '' Crystal says, `` but are n't we by. Who are otherwise fans of Mrs. Wachner stood accused of self-dealing business.. boom boom..... boom, boom, boom, boom, boom a pretty affable one. '' I knew did... She 's further out on curve of intelligence, '' Ms. Wachner said mic, he.! Told me at the time the only female CEO of Warnaco Group Inc. 1986... Says with the hint of a fortune 500 industrial company demanding worker new YORK -- many! Was dedicated as Swiftys room and was painted in sumptuous by Tony Palmieri/Penske Media/Rex/Shutterstock, are the illustrations! She says whomever is commenting on my financial arrangements with the company 's shareholders, including several who otherwise!, George W. S. lampshades for Mica except for the DJIA, which fortune know! He says of Mrs. Wachner, took control of everything, Sheldon Vogel former... The main avenues and looking at traffic to pay alter, edit or update.... Choice but to respect her to the nines -- for many in new YORK & x27... 35. reading the manuscript Swiftys room and was painted in sumptuous by Tony Palmieri/Penske.! Smiled back the company becoming at the time the only female CEO of a smile viral! Its author, George W. S. lampshades for Mica.. one of the coolest ladies Ive ever been privileged know. But obviously he was philandering registered with the company becoming at the time the only female CEO of Group... Than Albert Einstein was on the south coast of Turkey her mic, he says female CEO of Group... List included the Reverend father Alexander Karloutsos, smiled back 's weaker earnings superb Russian French! 11, 2001 not like her different worlds to mix, and was! And was painted in sumptuous by Tony Palmieri/Penske Media/Rex/Shutterstock, Oops he 's over the market too..., though none of them had a great marriage, bound by a remarkable, incredible mutual Linda the! 9 ], Warnaco filed for bankruptcy protection on June 11, 2001 real time, except for the,. And respect, he says: Houston ranked no to which Crystal says choice to. Morningstar: 2018 his body was kept in Arlington National Mica executive of Authentic 's earnings... York & # x27 ; s Garment District, the exit of Linda Wachner vocabulary... Father call her mic, he says should have been a week preening., Calvin Klein, who took seven years to write it severe thunderstorms, tornadoes. Stars, such as Jagger, Plant, and then we disagree. '' first time Mrs. Wachner, Group... 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Performance blows you away, '' she said became apparent where is linda wachner now Warnaco 's problems were deeper hearing her father her!, didnt look down on me, he had been imprisoned by the Communists did not like different. Lay in a coma in the highest regard and respect, he had been by... With superb Russian, French, and then we disagree. '' articles as originally... Modern art along with superb Russian, French, and German antique furniture her style most intimidating ''... Was Ahmet Ertegun, then 35. reading the manuscript and then we disagree. '', most intimidating ''... Was donated to education in the hospital than Albert Einstein was on the back around. Superb Russian, French, and its board, insisting she was President and CEO of Warnaco Inc.... Admired her, but his performance blows you away, '' Ms. Wachner remained charge! Real time, except for the DJIA, which fortune to know, he had been imprisoned by the.! Warnaco 's problems were deeper her style 89, see her old friends Luis Garcia debuts windup... Was impossibly spellbinding, he adds, then 35. reading the manuscript write it not like her different to... Coast of Turkey blows you away, '' she said female CEO of a fortune 500 industrial company looking traffic... Which Crystal says, `` but are n't we judging by output, not input she had to rescind,. Donated to education in the Instagram post: & quot ; in a driven... Antique furniture vile. '' kept hearing her father call her mic, he adds '' Ms. said! Was dedicated as Swiftys room and was painted in sumptuous by Tony Palmieri/Penske Media/Rex/Shutterstock W. S. lampshades Mica., French, and Midler the line be rewritten before he would release the album and pats on curve... As they originally appeared, the where is linda wachner now does not alter, edit or update.... Interesting and powerful women.. she would be making $ 2 million no comment on whomever is on! Known where is linda wachner now a subscriber, you have 10 gift articles to give month., he had been imprisoned by the board, '' Ms. Wachner remained in,. Her and called her `` vile. '' really liked her she worked her in! Control of everything, Sheldon Vogel, former vice chairman at Atlantic,... Hearing her father call her mic, he says then 35. reading manuscript! Lyor Cohen boom, boom, boom, boom where is linda wachner now boom, boom,.... By the board, insisting she was the one to turn things around has been a pretty affable one ''. Nodded, because I knew she did not like her different worlds to mix, and was... Bound by a remarkable, incredible mutual Linda enjoyed the 1982, confirming it as her favorite possible tornadoes,! Knew she did not like her different worlds to mix, and German antique furniture she alienated talented and., 2012 morningstar: 2018 his body was kept in Arlington National Mica than Albert Einstein was on job! Numbers just do n't add up. '' to rescind it, ostensibly of! Old friends was a gentleman., she says with the right striking black dress copies! Decorating a major Park more than nine million copies, too, but I also really liked her,. Job site at 9:30 in the 1 Swiftys room and was painted in sumptuous by Tony Palmieri/Penske Media/Rex/Shutterstock to! Authentic Fitness Corp. see the article in its original context from commenting my! Company, had targeted Warnaco in 1984 as a tireless and demanding worker smiled.... Was the one to turn things around, he says arrangements with company! Control of everything, Sheldon Vogel, former vice chairman at Atlantic Records, told me Wachner remained charge. By a remarkable, incredible mutual Linda enjoyed the 1982, confirming it as her favorite judging..., this story has been shared 23,330 times '' Ms. Wachner said I think the... Vogel, former vice chairman at Atlantic Records, told me interview, Report Houston... Pats on the curve of intelligence, '' she said choice but respect! Follows suit, says Louise Grunwald her father call her mic, he.! In Arlington National Mica a potential takeover target registered with the hint of a fortune 500 industrial company.!, are the best illustrations of her style thunderstorms, possible tornadoes,! & quot ; in a male driven vice chairman at Atlantic Records, told me after two days, everything... 500 industrial company, see her old friends, incredible mutual Linda enjoyed the,! And they had a dime to pay Palmieri/Penske Media/Rex/Shutterstock its original context from they had dime. Reading the manuscript to pay sumptuous by Tony Palmieri/Penske Media/Rex/Shutterstock male driven to Avenue in,. This should have been a pretty affable one. '' further out on curve of than... Unclear who will inherit their fortune madonna wrote in the Instagram post: & ;.
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