How the heck did this one pass me by? Shareholders agree with us, Abercrombie & Fitch’s compensation policies stink. And since they don’t have a say on pay there yet, shareholders did all they could by massively withholding votes from the only two members of the compensation committee up for election this year – Edward Limato and Craig Stapleton – and voting down the management proposal for the long-term incentive plan. It’s all in this 8-K.
And Michael Jeffries, the CEO, wasn’t even eligible for the new long-term incentive plan!
You might be tempted to ask why would he need any more compensation, but that doesn’t seem to be a question the board ever asks so you’d so best not to bother.
And shareholders voted overwhelmingly for board declassification, so soon they’ll be able to vote against all the members of the compensation committee all at once.
Of course, ISS claims it’s all about the burn rate, but we know better, and we said so in our CEO pay webinar.
Paul Hodgson - Senior Research Associate
