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Letter from Jerry Stritzke to REI Employees

REI Staff|

REI,

This morning, here at our Kent headquarters, our Board Chair, Steve Hooper, announced that the REI board of directors has accepted my resignation as President and CEO of REI. My last day will be March 15. Eric Artz, REI Chief Operating Officer, will take on the role of interim CEO, effective immediately.

Five years ago, I joined REI as CEO and started a new phase of my life. I feel incredibly fortunate to have been a part of and to have led this organization. I have learned a great deal and while it is hard to leave, it’s the right time. I am grateful that I can transition an organization that I love to a seasoned leader in Eric and a talented team at a time when the co-op has real momentum. That’s a rare privilege as a CEO and this change gives me the opportunity to pursue a lifelong dream—to go explore all the places that inspired me to join REI.

I offered my resignation because in recent weeks the board of directors and I have had a series of tough conversations about my decision to keep private a personal and consensual relationship with the leader of another organization in the outdoor industry. The board oversaw a thorough investigation that was conducted by an external law firm. While there was no financial misconduct, I should have told the board because my actions created a perceived conflict of interest to the co-op.

Looking back, I recognize I should have been transparent. REI expects high standards from its leaders. The board and I agree that, in this instance, my decisions did not meet them and the last thing I want is to damage REI. I deeply regret that my actions could impact the co-op. You deserve better.

Looking ahead, both the board of directors and I are fully committed to ensuring that REI continues to thrive. I am confident that Eric will do a great job. I am grateful for his partnership during my tenure and fully support his stepping into the interim role. We have the right strategy, an excellent leadership team and REI is in a great place financially, so I know the co-op will continue to progress.

I have huge admiration for you all, and I believe fiercely that the work the co-op has done for 80 years has had an unmatched positive impact on the outdoors and on people’s lives. Thank you again for all you do and for the opportunity to lead.

See you outside,

Jerry
REI Co-Op
REI Staff

REI Co-op’s editorial staff is a team of passionate editors, writers and producers. We’re dedicated to covering the outdoors: the people who inspire you, the issues and events impacting our community, the skills and gear you need for your next adventure, and the places you want to go. Learn more about our editorial guiding principles.

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13 Comments

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  1. William Perreault

    Hey, Jerry, really quick, before you go. Can you go ahead and raise wages to the bit of the companies success, the Greenvest’s. Yeah, that’d be great. $22.00 an hour, yeah.

    Reply
    • Mike Harley

      William, your point is well taken, particularly since McDonalds pays $13.00 an hour and up for entry level burger flippers. We pay that to employees with three years experience that are marketed as “experts”. Off-topic, but perhaps events like these cause management to reassess its practices across the board.

      Reply
    • Garrett W

      Agreed. Please pay your employees a competitive wage before you leave. 13$ an hour for a starting wage in Los Angeles when fast food companies are $15-16. End your legacy by rewarding your hard working retail employees.
      -Non REI Employee

      Reply
  2. Jesse Gessel

    Why is it not public knowledge of who the other organization is in the outdoor industry? I wonder how that relationship had affected the pricing, margin, inventory values that REI received and this other organization benefited from this personal relationship. This is a conflict of interest for the industry as a whole – especially when you start talking about Public vs. Private organization. Did anyone think about how this can be influenced by investors and other board of directors for this other organization? This has more damage by keeping the information disclosed than public, the damage is already done in my eyes. I am a CO-OP member and a former REI Manager. Wish you the best Jerry!

    Reply
  3. Laura Cooper

    Jerry, I started working for REI almost 7 years ago. I was just marveling recently over the transformation that has occurred since you have taken over the role of CEO. I really appreciate the drive for authenticity and reclaiming the roots of REI. It reflects a marked difference from any other company that I’ve worked for and a marked difference from the co-op of 7 years ago. Thank you and I am personally saddened that you are leaving the organization. – Laura

    Reply
    • Terry

      All due respect Laura, tho Jerry drove the company to new $$ heights, I see it as becoming just another big box full on marketing juggernaut. I felt I saw any resemblance to the core values faint. And again, I’m not meaning to take away from his skills, but the vision had little to do with employees wellbeing.

      Reply
  4. Zak

    I see this in very different color as one who is a member and who spent years in Civil Litigation firms constantly hearing “we can’t have couples in the firm,” “our boards can’t date others in the industry.” etc., etc., etc. The fact is, in the overall scheme of things, how often does misconduct come of these relationships, not as often as people would like to believe. This morning, chatting with other REI members I know, they point out the glaring obvious; REI’s own public statement: “We will always be grateful for Jerry’s drive, his many contributions to the co-op and the successes he and his team have made possible. The conclusions of the investigation, however, were clear. Errors of judgment were made and Jerry and the board agree that REI needs a new leader to take the co-op forward from its very strong position,” REI Board Chair Steve Hooper said.” Key words of “successes,” “forward from its very strong position,” and more. In short, the company has come far in just a few years under Jerry’s belt, which implies no negative impact. Yes, the disclosure should have be forthcoming from the onset, but on the other hand, there are risks involved with change of leadership, especially now with the global economics on a downturn. It could be similar to how Apple had to regain lost grown after Jobs passed away. For several years, Apple became a following more than a leader (and I’m an Apple shareholder and I’m admitting that). Good Luck Jerry, I have no doubt, you will create something new that will take the industry by storm.

    Reply
  5. John

    As a coop member for decades, I am disappointed by the HQ client interface skills. If a client has an issue and wishes to evaluate that up the chain of command to Kent, who do we contact there? No one publishes contact information. The customers are why Kent is there, not a problem to avoid.

    Reply
    • Jessica Bernhard

      Hi John,

      We’re sorry to hear that getting ahold of folks at our headquarters has been frustrating. We recommend contacting a representative in our Help Center at 1-800-426-4840; they will make sure you’re connected with the right person. Or, if you feel comfortable sharing about the issue here, we are happy to get you in touch with the appropriate contact.

      Thanks,

      Jess Bernhard
      Associate Editor

      Reply
  6. Driane Clarise Rutledge

    Thank you for all you’ve done for the Co-op, Mr Stritzke. Also, thank you for accepting responsibility for this. REI Colorado Springs is here to outfit you for upcoming adventures-dc

    Reply
  7. Rob Anderson

    Sorry William, all the progress REI has made is on the broken backs of us poor front line guys. Ya know the ones who had to work 10-20 straight days of mandatory overtime after “optoutside” or lose their jobs. (funny they don’t tell the public about that part)

    Maybe the new management will make REI a place where it’s employees are appreciated for what they *can* contribute instead of punished for what they *can’t* contribute. But I highly doubtful it. REI was a great place to work. But that was 20 years ago. Now they’re just abusing their people until that legacy dies.

    Reply
  8. Terrance Parker

    Hey Jerry, so sorry this happened to you. I have been a member of REI since the mid-80’s and have family members with older memberships. I work in the electronics industry (semiconductors). I can say that I know a lot of compatriots I work with that are married or have relationship with a competitor in the industry…We have gotten weird as a society and our judgments. Not sure how good of a CEO you were…but this is not deserved. Our work life is stressful and hard enough without a lot of personal time. You found someone in the industry that allowed you to socialize and be in the same places. You would have been tarred, feathered and castigated if you had a relationship with a REI employee. You chose someone outside of REI…good for you. I do not believe you or she was devious. But both of you just wanted human companionship and someone to relate to. Unfortunately, at your level and probably hers, work defines you (it does me and have been trying to change that for years). So, your relationship was based on the industry without discussing specifics about the companies you worked for. I meet with competitors at industry functions and do the same thing. Not everyone is devious. You had a tough job…grow revenues, increase margin and increase market share, etc… and owed these answers on a daily basis to the board and the members. You can ignore the comments from members who have never had to run their own company, meet payroll, pay insurance and pay for retirement from the company coffers and just expect you to wave a hand and make life good for everyone. Especially with a co-op or public company. We are not like Chouinard and Patagonia. Black Diamond went public in 2015…wait for the fall out on that.
    Take care and safe journey,
    Terry Parker
    Fort Collins, CO

    Reply