Page last updated at 11:13 GMT, Wednesday, 14 April 2010 12:13 UK

Abercrombie & Fitch boss paid $4m to limit plane use

Shoppers with Abercrombie & Fitch bags
Abercrombie & Fitch is known for its edgy adverts featuring teenage models

The chief executive of Abercrombie & Fitch is being paid $4m (£2.6m) to curb his personal use of the company plane.

Michael Jeffries previously had unlimited use of the firm's aircraft.

In 2008, his personal use incurred costs of $1.1m. Now, if he exceeds $200,000 a year he must reimburse the teen retailer.

Mr Jeffries would also have to pay some of the $4m back if he were to leave the company without "good reason" before his contract runs out in February 2014.

CORPORATE JET SET
In late 2008, executives from Ford, Chrysler and GM looking for a taxpayer-funded bail-out were criticised for taking private jets from Detroit to Washington
Enron had seven private jets. And while its stock was plunging, it is reported that chairman Ken Lay was examining fabric swatches to decide on the interior for his firm's newest plane
Last year, RBS sold the jet used by former boss Sir Fred Goodwin. It had bought the plane in 2002 just as it was cutting about 18,000 jobs following the takeover of Natwest

The move was revealed in a US Securities & Exchange Commission filing which has been released.

Mr Jeffries' personal use of the plane averaged about $850,000 a year between 2006 and 2008, according to previous company regulatory filings.

Many companies have been cutting down on executives' personal use of the corporate jet in the last couple of years, although compensation for doing so is unusual.

Mr Jeffries has been chief executive since 1992 and is widely credited with revitalising the brand in the 1990s by marketing its preppy clothing to teenagers.



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FROM OTHER NEWS SITES
Telegraph Lloyd's of London charging just - 2 hrs ago
The Independent Abercrombie & Fitch CEO gets $4m to curb jet use - 10 hrs ago
Times Online Clothing boss given $4m to curb use of jet - 14 hrs ago
Management Today Magazine Abercrombie & Fitch boss Jeffries gets $4m not to use his private jet - 23 hrs ago


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