Abercrombie & Fitch Opts To Keep CEO Mike Jeffries Another Year
What does a guy like Mike Jeffries have to do to get fired? By all accounts, the Abercrombie & Fitch CEO had a terrible year, and yet the company just elected to renew his contract — and his $1.5 million salary — by at least another year. He’s also been promised target incentives worth as much at $6 million and bonuses up to $4.5 million.
Meanwhile, Abercrombie’s shares are down 26 percent over the last year. And that’s likely in part because of some of Jeffries’ very public gaffes.
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Earlier this year, comments Jeffries made in a 2006 Salon interview began circulating. “We go after the cool kids,” he said. “A lot of people don’t belong, and they can’t belong. Are we exclusionary? Absolutely.” Jeffries offered an apology-not-apology to the statement. “While I believe this 7 year old, resurrected quote has been taken out of context, I sincerely regret that my choice of words was interpreted in a manner that has caused offense,” he said.
Then there was the revelation that Abercrombie doesn’t sell women’s clothes larger than a size 10. Activist Benjamin O’Keefe launched a petition against the company earlier this year to motivate them to change their sizing policy — and won. The company now says it will begin making clothing in more inclusive sizes. But he’s still shocked at the company’s choice to keep Jeffries around.
“I think Abercrombie’s board making the decision to keep Jeffries really reaffirms their commitment to hate and discrimination. And that’s why their profits have plummeted,” O’Keefe told StyleCaster today.
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Asked why Abercrombie might choose to keep such a controversial figure at its helm, O’Keefe was at a loss. ” This could have been a great opportunity for them to enhance their brand, this could have been a great chance to say ‘this is not who we are.’ Your CEO really sets the tone for their entire brand and company.”
But O’Keefe is confident that consumers will continue to show Abercrombie what they think of its choices — and Jeffries — with their wallets. “People don’t want to wear clothes that don’t represent who they are on the inside.”
