Abercrombie & Fitch has been criticized as a company that has refused to heed economic indicators and, as a result, plummeted in sales. The blame is placed on its chairman and CEO Mike Jeffries, who in 2008 received $71.8 million in total compensation — making him one of the five Highest Paid Worst Performers of 2008 by the Corporate Library. Now, it is alleged that he will receive $4 million to simply stop unlimited use of the corporate jet and travel budget. In 2008, his travel budget cost the company $1.3 million.
According to this article, after he agreed to limit his personal travel at $200,000, he will be given a $4 million lump sum for amending his contract and eliminating this perk.
Next time I pay another $90 for a skimpy shirt for one of my nieces at Abercrombie and Fitch. I can at least feel better that it will go to support Jeffries’ travel needs.
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