Abercrombie limits Chief Executive Jeffries personal aircraft use, but pays lump sum of $4M

Abercrombie limits CEO’s personal jet use

NEW ALBANY, Ohio — Abercrombie & Fitch Co., which makes preppy clothing aimed at teens, will limit CEO Mike Jeffries’ personal use of the company aircraft but will pay him a hefty $4 million because of the change.

The company said in a filing with the Securities and Exchange Commission on Tuesday that if CEO Mike Jeffries use of the aircraft exceeds $200,000 during a fiscal year he must now reimburse the company.

Jeffries would have to pay some of his $4 million back if he leaves the company without “good reason,” as specified by his employment contract.

Jeffries use of the company’s aircraft for personal use was valued at $1.1 million in 2009 and $776,723 in 2008.

Jeffries has been CEO since 1992 and he is widely credited with revitalizing the brand in the 1990s by marketing its preppy aesthetic to teens with edgy ads.

In a proxy statement last year, the company said his role was “more akin to founder or lead creative talent than a typical CEO” and said his “vision” has “transformed the company into one of the most successful and widely known teen retailers of today.”

In 2009, he received $23.2 million, more than double his compensation from a year earlier, largely due to a hefty bonus tied to his previous employment contract and stock appreciation rights related to a new contract.