Out with the old, in with the new…

June 11, 2004

Abercrombie & Fitch’s (ANF) Q filed yesterday had both the retirement agreement for Seth Johnson, who officially steps down from the retailer’s No. 2 post on June 18 as well as the employment agreement for the man who is replacing him, former Gucci (GUC) executive Robert Singer. Johnson, whose base salary was $817,788 last year, will collect $17,451 a week, or $907,452 a year, for the next two years. As an added incentive, the company will also give Johnson the dollar value of 25,000 shares of stock in June 2005 and an additional 45,000 shares in June 2006. At today’s prices, that’s worth another $2.6 million, though Johnson is obviously betting that the stock will increase. As for Singer, he’ll make $886,000 a year and be eligible for a bonus worth up to 200% of his base salary. He’ll also collect a $100,000 signing bonus and get money to cover the cost of apartments in New York ($10,000 a month) and Ohio ($3,000 a month), where ANF is based. Singer’s wife and kids also make out well in the deal: the company will pay for her first-class plane tickets to Italy up to four times a year; the two kids get two round trips a year to Italy, but will have to fly coach.

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