Abercrombie & Fitch Co. Chief Executive Officer Michael Jeffries saw his pay shrink 72 percent last year as the teen retailer’s sales and profit fell.
Total compensation for Jeffries was $2.24 million in fiscal 2013, which ended Feb. 1, the New Albany, Ohio-based company said today in a filing. That’s down from $8.16 million in the previous year and $48.1 million in fiscal 2011. He was paid more than $20 million a year in the three years before that as well.
Jeffries, 69, has struggled to regain Abercrombie’s appeal among teenage shoppers, resulting in a 77 percent profit decline last year. The company also stripped Jeffries of his chairman role this year, created a new chief operating officer job and named four new independent directors to its board as part of a deal with investor Engaged Capital LLC.
Abercrombie shares rose 0.8 percent to $38.64 at the close of trading in New York. The stock has slid 28 percent in the past 12 months, compared with a 16 percent gain for the Standard & Poor’s 500 Index.
Jeffries didn’t receive any performance-based bonuses in fiscal 2013, which account for much of the decrease in total compensation. He also didn’t get a cash bonus or any equity awards during the year because Abercrombie failed to achieve financial targets and its stock performed poorly, the company said in the filing. Jeffries’s salary remained about the same.
The stock fell 31 percent in 2013, marking the third straight year of declines.
Jeffries got a new contract with Abercrombie effective in February 2014, which pays the same base salary of $1.5 million a year, while boosting his annual bonuses to as much as $4.5 million from as much as $3.6 million. The new plan awards him long-term incentive awards at a target value of $6 million and also caps Jeffries’s access to the company’s aircraft at as much as $200,000 in personal travel. The new contract has no sign-on or retention grants and eliminates the semiannual equity grant Jeffries received through his old agreement.