Getting Paid to Fly Commercial

Abercrombie and Fitch recently amended the contract of CEO Michael Jeffries “to limit his company-covered personal use of the corporate jet to $200,000 per year.” In exchange, Jeffries will receive a $4 million one-time payment (with a clawback provision if he leaves the company). The CEO averaged $850,00 worth of personal travel on the company jet between 2006 and 2008. “There will likely be a negative reaction to it from institutional shareholders,” said Irv Becker, an expert on executive compensation. Would be interesting to know how much of that $4 million Jeffries ends up spending on airline travel. [%comments]