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By
Reuters
Published
Dec 9, 2013
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Abercrombie rejects shareholder call and extends CEO contract

By
Reuters
Published
Dec 9, 2013

Struggling teen apparel retailer Abercrombie & Fitch Co said it will extend Chief Executive Mike Jeffries contract by a year, days after a shareholder urged the company to replace him.

Abercrombie shares were down 2 percent at $34.15 in early trade on Monday.

Mike Jeffries | All Rights Reserved

The company said the new agreement has a more simplified, performance-based compensation structure that is designed to align incentives closely with the success of the company.

Jeffries current contract expires in February.

Abercrombie said Leslee Herro will retire from her position as executive vice president of merchandise planning and inventory management in the spring of 2014.

The company also said it plans to hire brand presidents for its Abercrombie & Fitch, abercrombie kids, and Hollister brands to help with its succession planning.

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