72 % wage cut for Abercrombie & Fitch CEO

72 % wage cut for Abercrombie & Fitch CEO

Michael Jeffries, Abercrombie & Fitch's CEO, is having a rough time. He had to take a 72 % wage cut compared to 2012, because once again the group saw its profits drop sharply.

'Only' 2.24 million dollars

The 69-year old Jeffries probably will not feel too bad about it, as he still received 2.24 million dollars (some 1.63 million euro). It is however a very large decrease compared to 2012 (5.95 million euro) and especially compared to 2011 (35.06 million euro).

 

The huge drop is because of the fact that the American concern is going through a rough patch. Both Abercrombie & Fitch and its affiliate brand Hollister are no longer as hip as they used to be and that resulted in a 77 % decrease in profits for its most recent fiscal year, which ended on 1 February 2014.

 

No longer president

Jeffries took control of Abercrombie & Fitch in 1992 and became president in 1996. Both friend and foe believe he is the architect of the brand's worldwide breakthrough, but he has failed to react to the increasing competition from brands like Forever 21 and other fast fashion brands.

 

In an attempt to turn the tide and to appease its critical shareholder Engaged Capital LLC, Jeffries relinquished his position as chairman to Arthur Martinez, a former Sears' CEO, who has now become the non-executive chairman. On top of that, 6 independent board members were appointed.

Questions or comments? Please feel free to contact the editors


Small Belgian brewery conquers Brazil thanks to playing cards

13/09/2017

Het Nest, a small brewery from Turnhout, will get its beers brewed in Brazil as well. It has struck a deal with Cervejaria Premium Paulista, which will brew and distribute the beers locally.

Price cuts drive 25 % more customers to Whole Foods

12/09/2017

Supermarket chain Whole Foods welcomed an additional 25 % of customers in the first few days following Amazon’s price cuts.

Ter Beke enters British food service industry

12/09/2017

Belgian food group Ter Beke has acquired a 90 % stake in British competitor KK Fine Foods for an undisclosed fee. The current shareholders hold onto the other 10 %.

Godiva wants to conquer the world through supermarkets

12/09/2017

Belgian praline brand Godiva will soon sell its chocolate in supermarkets all over the world after signing a deal with chains like Albert Heijn and Sainsbury’s. Previously, it sold nearly all its chocolate through its own store network.

Insight: Xavier Piesvaux' seven labours at Delhaize

10/09/2017

Can one French and several Dutch managers do what the Belgian management failed to do these past few years at Delhaize Belgium? Its new CEO will face plenty of challenges: we count at least seven.

Nestlé USA acquires food manufacturer Sweet Earth

08/09/2017

Nestlé USA has acquired American Sweet Earth for an undisclosed fee. The company mainly manufactures meat replacements, a rapidly-growing market, but also several frozen meals.

Back to top