We’ve seen a lot of crazy disclosures over the years here at footnoted. But the 8-K that teen retailer Abercrombie & Fitch (ANF) filed yesterday has to be one of the wackiest we’ve ever seen. So much so, that it made us recall the words of Phil Rizzuto when we spotted it: “Holy Cannoli”.
As the filing notes, CEO Michael Jeffries, who has a penchant for using ANF’s corporate jet for personal use, racking up over $1 million in a year when Abercrombie’s stock fell by over 60%, will receive $4 million not to use the corporate jet as much under his amended employment contract filed yesterday. If Jeffries spends over $200,000 a year on personal use, he’ll have to (insert huge sigh here) reach into his own pocket!
The amendment is short and sweet and very much written in legalese. Here’s a snip:
The Executive shall be provided, at the expense of the Company, with limited use of a private aircraft for personal travel, both within and outside North America; provided, however, that the incremental cost to the Company of such personal use (as determined by the Company for purposes of Item 402 of SEC Regulation S-K) for each fiscal year during the Term ending on or after January 29, 2011 shall not exceed $200,000… In consideration of the Executive entering into this Amendment, concurrently with the execution of this Amendment, the Company shall pay the Executive a lump sum cash payment in the amount of $4,000,000.
With Abercrombie stock sharply outperforming this year, it may seem easier for investors to swallow, or at least not complain as vociferously. Still, you have to wonder what ANF’s board was thinking here when they made this decision. Perhaps, cannolis were served at the meeting?
Image source: Davio’s