By Lea Pachta
Abercrombie & Fitch chief executive Mike Jeffries was paid $4m by the company to make a change to his contract regarding “unlimited use” of his corporate jet.
Abercrombie & Fitch gave him the lump sum to compensate for any inconvenience this contractual change will cause him. His new personal travel allowance has been capped off at $200,000 a year. Jeffries will have to reimburse the company for any personal travel charges which exceed this amount.
The chief executive would also have to pay some of the $4m back if he were to leave the company within the next four years without a good reason.
Reuters reported that Jeffries was paid a total $15.9m in 2008 and enjoyed an average of $850,000 worth of personal travel on the corporate jet between 2006 and 2008 alone.
It is not unusual in this time for companies to cut back on executive perks. But it is uncommon that anyone would receive such a high payout for foregoing his or her travel bonus.
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