inda J. Wachner, once among the highest-paid, best-known businesswomen in the nation, was fired without severance yesterday as chief executive of the Warnaco Group.

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. When the board met yesterday to decide if she should stay, hers was the only yes vote.

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. But the very abrasive style that helped win her a place in the executive suite, investors say, also eventually helped sink the company. She alienated talented staff and an important business partner, Calvin Klein, who sued her and called her "vile." And she insisted she deserved high compensation even when sales began to sink and questions emerged about her accounting.

In an interview yesterday, Ms. Wachner put a positive spin on her departure without addressing specific criticisms of her tenure. "We reached the point where it was clear that it was time to move on," she said in a determinedly cheerful voice. "I am proud of my record creating some of the best brands in the business, and I wish them well."

Warnaco's only comment on the ouster of Ms. Wachner came in a written statement. "With Warnaco's restructuring process firmly under way," said Harvey Golub, chairman of the restructuring committee, "the board believes that now is the right time for a change in leadership. 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."

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. "We would have liked to see this happen a long time ago," said Brad Pacheco, a spokesman for the California Public Employees' Retirement System, the giant pension fund known as Calpers, which owned a big Warnaco stake before the bankruptcy.

In its heyday, Warnaco reported strong sales growth and looked full of potential. As a pioneering woman in the executive suite, Ms. Wachner was frequently in the spotlight. Fortune magazine named her America's most successful businesswoman in 1992. In 1998, the company's share price reached a high of $44.375 a share.

The tale started to unravel in 2000 as earnings suddenly evaporated. Ms. Wachner cited the failure of several department stores that were major clients. Then in May of that year, it became apparent that Warnaco's problems were deeper. 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.

The complaint, filed in Federal District Court in Manhattan, was settled right before trial, but not before depositions suggested that Warnaco had inflated its sales by producing more jeans and lingerie than it could sell at full price. The suit was also remarkable for the visceral nature of Mr. Klein's attack on Ms. Wachner; he called her abusive and unprofessional.

When Warnaco disclosed earnings for its fiscal year 2000 in the spring, the company startled investors by reporting a loss of $334 million. The final numbers may in fact be worse. After an investigation by the Securities and Exchange Commission, Warnaco announced in August that it expected to restate earnings downward for the last three years. The results have not yet been posted.

Furious shareholders filed suits accusing Ms. Wachner of concealing Warnaco's precarious financial condition. "Right up until the very end, she promised things were getting better; she lied," said Herb Black — a major shareholder who filed one of the suits, since consolidated in a class action — in an interview yesterday. "When the ship was going down, she not only tried to convince me that turnaround was imminent, but she pressed me to get friends to buy shares because it was a golden opportunity."

Warnaco has denied that it intentionally misled shareholders.

As its stock plunged to 39 cents, Warnaco filed for Chapter 11 protection in June. Still, Ms. Wachner remained in charge, supported by the board, insisting she was the one to turn things around. But one reason was financial.

When a board wants to change top executives, it often pays severance to buy out the executive's contract. But even if Warnaco's board had wanted to, Ms. Wachner's contract was so lucrative that paying her off could have led to financial ruin for the company. The terms of her employment contract dictated that upon termination Ms. Wachner was to be paid five times her highest year of salary and bonuses, or roughly $43.6 million.

Once the company filed for bankruptcy, though, the contract was void. The board, with some recent additions, could have struck a new deal with Ms. Wachner, but apparently neither side could agree on terms. Now Ms. Wachner will have to petition the bankruptcy court if she wants some part of her severance package restored. "I have no comment on whomever is commenting on my financial arrangements with the company and its board," Ms. Wachner said.

Even without a severance package, Ms. Wachner has done well over the years. "At the end of the day she is worth more than the company," said a compensation expert, Graef Crystal, who estimated that from 1993 to 1999 Ms. Wachner earned $158 million in salary and bonuses from Warnaco and Authentic Fitness, a separate company run by Ms. Wachner and eventually bought by Warnaco.

"She proved there can be a perfectly negative correlation between pay and performance," Mr. Crystal said.

Antonio C. Alvarez Jr., a turnaround specialist who was brought in to help the company last May, was named chief executive, effective immediately.

Ms. Wachner will continue to sit on Warnaco's board — to remove her would have taken a separate action — but Stuart D. Buchalter succeeds her as chairman.