April 19, 2010

Abercrombie and Fitch CEO: Flying No More

Abercrombie and Fitch, one of the companies that has done the worst in this recession, is trying to take measures to keep its company afloat, but its bosses don't quite seem to understand the concept of sacrifice.

Their CEO agreed to stop getting reimbursed for high price flying, but his refusal of subsided jetsetting also landed him a whopping $4 million bonus. Which sort of defeats the purpose.

Said several experts in the field: "Most companies have the message that they are eliminating pay perks, not giving the guy cash to eliminate the perk. What's been lost in all of this is minimal human common sense.... I just thought, What are they thinking? Really? Customers aren't happy with them right now. Investors aren't happy. You have to wonder what is going through their minds."

Abercrombie and Fitch CEO: Flying No More

According to the SEC filing, no longer will the company provide unlimited payments for the CEO's personal travel on the company jet. Instead, Abercrombie will cap its reimbursements for the CEO's personal travel at $200,000. Before giving Jeffries any credit, however, just keep reading. Turns out that in exchange for amending his employment contract and eliminating this perk, Abercrombie will give Jeffries, whose employment contract runs through 2013, a $4 million lump-sum payment.

Abercrombie and Fitch CEO: Flying No More

Posted at April 19, 2010 4:00 AM