Abercrombie & Fitch has split its CEO and president roles to appease the shareholders. They actually wanted CEO Michael Jeffries to be replaced, but will now have to settle for a compromise.
Saved Jeffries’ skin
Michael Jeffries has been both Abercrombie & Fitch’s chairman and CEO since 1996. He will still be part of that board and keep his role as CEO, but Arthur Martinez will become the ‘non-executive chairman’.
Martinez is already on the boards of American International Group and IAC/InterActiveCorp. Alongside him, Terry Burman and Charles Perrin were named members of the board of directors at Abercrombie & Fitch.
The changes are the result of shareholder complaints. Some wanted Jeffries to be replaced, especially after Jeffries seemed to have lost his touch with A&F customers. The company’s collections are not as popular as they used to be and the barely-dressed models in the stores do not seem to attract as much traffic anymore, with lower sales as a result.