Solving the Founder-CEO Dilemma
Men’s Wearhouse’s termination of founder and executive chairman George Zimmer highlights one of the most important decisions a company, its board, and investors make: hiring or retaining the right CEO. When the decision involves promoting, replacing or complementing a founder who built the company—as Zimmer did—the decision is quite complex and the stakes are extremely high. There is a long-standing and active debate about what to do with a founder CEO once the company has expanded beyond the entrepreneurial stage. There are four schools of thought.