Sponsors
Billabong ▼ 0.000 | PPR ▲ +0.55 | American Apparel ▼ -0.013 | The Buckle ▼ -0.39 | Columbia ▲ +0.09 | Deckers Outdoor ▲ +0.26 | Dicks ▼ -0.02 | Foot Locker ▼ -0.18 | Genesco ▼ -0.06 | Iconix Brand Group ▼ -0.05 | Jarden Corp ▲ +0.15 | Nordstrom ▼ -0.15 | Luxottica ▼ -0.56 | Nike ▲ +0.51 | Pacific Sunwear ▼ -0.05 | Skullcandy ▼ -0.04 | Sport Chalet - 0 | Urban Outfitters ▼ -0.53 | VF Corp ▼ -0.01 | Quiksilver ▼ -0.01 | Zumiez ▼ -0.33 | Macys ▼ -0.37 | Tillys ▲ +0.05 |
Ticker Sponsor
Readers Say
I waited too long to sign up for Executive Edition
I waited too long to sign up for Executive Edition

I read Shop-Eat-Surf at every opportunity, and I waited too long to sign up for the Executive Edition. It’s timely, relevant and clearly “from the industry, for the industry.

- By Andy Laats, President, Nixon
Since the inception of Executive Edition, I only need 1 stop
Since the inception of Executive Edition, I only need 1 stop

As a retailer in the surf industry for the past 21 years, I have had to use multiple sources to stay informed to the news within surf. Since the inception of the Executive Edition of Shop-Eat-Surf.com, I need only one stop. Thanks for providing such a valuable tool to all of us in the industry. Shop-Eat-Surf is a must read for all of our staff at Maui Nix.

- By George Karamitos, CEO, Maui Nix
Industry Insight

MOSS ADAMS: Webinar 12/2 on internal controls to increase the value of your business.
AGENDA: 12/30 deadline to pre-register for Jan. 5-6 Long Beach show.
CIT TRADE FINANCE: Middle-market retailers cautiously optimistic for holiday.
Details on Industry Insight.


Tiffany Montgomery
Print This Article

Abercrombie CEO gets big money to limit personal jet perk

By Tiffany Montgomery
April 13, 2010 1:52 PM

Abercrombie & Fitch will now longer allow CEO Mike Jeffries to use the company aircraft as much as he wants for personal trips.

Now, Jeffries will have to pick up the tab for any personal use that exceeds $200,000.

In addition, the company will no longer pick up the tax tab for Jeffries personal plane privileges.

Don’t shed any tears for Jeffries, however. The company will pay him a lump sum of $4 million to make up for the new airplane restrictions. He’ll have to pay back a portion of the $4 million if he leaves without good reason before his contract expires in 2014.

Last year, I wrote a series of stories about executive compensation, and Jeffries’ lavish perks, salary and bonus stood out, as did the board's effusive words of praise for his “visionary” leadership.

While Jeffries did reinvent the company, he has not effectively managed the recession. He has flip-flopped completely on his “discounting hurts brand equity” philosophy and the company’s same store sales in 2009 were some of the worst in the retail industry.

In fiscal 2009, company same store sales fell 23%. Total sales declined 15.9% to $2.9 billion. Net income plunged 99% to $0.3 million.

Abercrombie owns industry competitor Hollister, in addition to the Abercrombie & Fitch, Abercrombie and Gilly Hicks chains.

 


Articles You Might Have Missed