When Abercrombie Fails, Its CEO Makes $36.3 Million

Meet Michael.

We recently learned that Michael Jeffries, the CEO of Abercrombie, would receive $4 million in exchange for limiting his yearly personal use of the company's private jet to $200,000 worth of travel. However, we didn't know how much Jeffries cost the company on personal travel last year ... until this very lucky and exciting morning! Turns out it was $640,000 plus $170,000 to cover taxes related to that personal travel. (This is still less than the $1.1 million he used for personal travel in 2008.) That $810,000 sum is included in the total value of Jeffries's compensation for 2009 — a dismal year for so many, Jeffries's company included. But he walked away with a pay package valued at $36.3 million, up from $23.2 million the year before.

While Abercrombie's sales fell 16 percent for that year and net income fell $254,000, the CEO got a salary of $1.5 million and $33.3 million in options rewards to fully vest by January 2014, when his contract runs out.

The big equity component "strongly aligns" Mr. Jeffries's interests with those of Abercrombie & Fitch shareholders, the spokesman said.

Jeffries didn't get a cash bonus because operating goals weren't met in either the spring or fall periods. However, he got about $120,000 for personal security, which, in light of these numbers and the nation's collective bitterness, was probably put to good use.

Abercrombie CEO Paid $36.3 Million Last Year [WSJ]