PHOENIX— Best Western International President/CEO Jim Evans is stepping down from his position and will not renew his contract with the global lodging company when his two-year agreement expires this November, making him the top executive in a line of senior management exits that have hit the membership association this year. In fact, as HOTEL BUSINESS® went to press, it was learned Nir Margalit, BW’s vp/general counsel, was also jumping ship and would be out of the chain at the end of August. Evans, who has been at the BWI helm for four years, remained tightlipped at presstime about his own situation, refusing to comment or return calls. Evans’ resignation came “as a shock’ to the membership organization’s board of directors’ Chairman Ken Smotherman told HOTEL BUSINESS®, noting Evans’ move was not anticipated at all. “It was really a shock to all of us,” he said, adding Evans gave no reason for the decision other than saying he wanted to pursue other opportunities. However, several sources who requested anonymity, said the only shock came from how soon Evans decided to leave, and placed responsibility for the accelerated departure— and others— squarely with Best Western’s board of directors, which they contend is no longer balanced in its seven-member makeup toward pushing the brand in a “positive” direction. “At least four people on the board don’t seem to have a common focus. Those four people are the current chairman (Smotherman), the incoming chairman (Vice Chairman Lowell Cruse) and the next two chairmen (Secretary/Treasurer Nayan Patel and board member Nils Kindgren). They’re all in the same camp,” said one source. The remainder of the board is made up of past chairpersons Cindy Binkele, John Van Duyn and Michael Scholz. “The momentum of the board changed from positive to negative… they’re very controlling people and they wanted to control Jim. They basically took all of his authority away from him. They basically told Jim— as recent as the last board meeting— that you can’t hire people anymore. We have to interview them and we have to approve them. You can’t give people raises anymore more than 4.5%. So they basically took all his control away from him. It’s just a very, very negative hostile environment,” said the source. “It was probably going to happen, but I didn’t expect it to happen right now,” said another source. “That’s the shock, really. Part of the problem is there’s some directors who don’t understand corporate governance, corporate structures and they just want to micromanage when they get in there. You know, you’re hiring a high-caliber guy who can take care of the job. Why are you micromanaging? You set the parameters and you let him run with it. And you can rein him in if he doesn’t do it, which quite frankly, [Jim’s] done an admirable job.” When reached by HOTEL BUSINESS® and asked if he felt there was anything the board might have done to prompt Evans to leave, Smotherman responded: “Well, you know, I’m sure the CEO and a board always have disagreements. That’s the reason we’re here. I wouldn’t say we did anything to force this on him, no.” Smotherman also emphatically denied telling Evans he couldn’t hire without the board’s approval— “There’s no way we ever told him that,” he said— and had the same response when asked if the board put a halt to offering raises beyond 4.5%. “No, we did not,” said Smotherman. “We do have a comp committee that certain things go through. I’m not on that committee and I couldn’t tell you the limits or anything like that.” Smotherman also repudiated the sources’ accusations. “As a membership organization you’re always going to have some people that are going to disagree with what we do and spread rumors, but no, none of that stuff …is true.” However, prior to learning of Margalit’s exit, HB® asked Smotherman if he was concerned a there might soon be other executive level departures. “No, not really. Lowell Cruse and I flew out here last week (when Ev
