Abercrombie & Fitch boss grounded
Michael Jeffries of Abercrombie & Fitch used to have unlimited use of the companies aircraft. He is being paid $4 million to limit his use of the company’s plane. In 2008, his personal use cost the company $1.1 million. Now, if he exceeds $200,000 a year, he is expected to reimburse the company.
Also, Jeffries would have to pay some of the $4 million back if he leaves the company before his his contract runs out in February 2014.
Many companies have limited executives’ use of company airplanes, but reimbursing is an unusual move.
Jeffries personal use of the plane averaged $850,000 a year between 2006 and 2008.