Dive Brief:
- Despite a call from prominent shareholder Engaged Capital LLC to ditch CEO Michael Jeffries, Abercrombie & Fitch Co. has offered the chief executive a new agreement that will keep him in the role for two more years as of Feb. 2.
- Jeffries' annual salary will remain the same at $1.5 million, along with incentives based on company results.
- Critics have been concerned about controversial public statements that Jeffries has made, potentially alienating some consumers and indicating that A&F does not need to sell large sizes.
Dive Insight:
A&F has taken on an apologetic tone with customers recently, and even announced that it will begin offering larger sizes in 2014. Jeffries' new deal marks a vote of confidence at a time when the company has seen shares drop and publicity sour. Nevertheless, he still seems to have some friends in high places who want to keep him around.
