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.