Abercrombie & Fitch is paying its chief executive $4m (£2.5m) to compensate him for curbing his use of the company’s corporate jet.
The US young fashion retailer has altered the employment contract of chairman and chief executive Michael Jeffries to limit his use of the aircraft to $200,000 (£130,000m) a year. If he exceeds this amount, he must reimburse the retailer.
His use of the aeroplane cost $1.1m (£712,000) in 2008. Jeffries would have to pay back a “prorate portion” of the lump sum if he quits before February 1 2014, according to a filing at the US Securities and Exchange Commission this week.
Jeffries is credited with turning around the fashion retailer. He received a pay packet of $23.4m (£15.2m) in 2009, boosted by performance-related bonuses and share awards.