Abercrombie & Fitch chief executive Mike Jeffries has lost his chairmanship role as part of a restructure of the young fashion retailer’s board.
Jeffries, who has been chairman since 1996, will continue as chief executive and remain a company director.
It follows news in December that he had renewed his contract for an annual base salary of $1.5m (£912,000) with the possibility of other annual bonuses reaching $4.5m and long term incentive awards at a target value of $6m (£3.6m).
This came despite shareholder criticism, with investor Engaged Capital complaining that the company’s “perennial underperformance is a result
of a failure of leadership”.
Arthur C. Martinez, Terry Burman, and Charles R. Perrin have been appointed to the A&F board of directors with immediate effect, swelling the total number of members to 12. Martinez is taking on the new role of non-executive chairman.
Jeffries said: “I have strongly supported the significant corporate governance enhancements the company has made in the past few years, and I am thrilled by the announcements we are making today.
“Arthur Martinez brings extensive sector expertise, deep boardroom experience, and valuable perspectives to the new role of non-executive chairman. I am confident that he is the right choice to lead the board of Abercrombie & Fitch as we execute against our strategic plans and move in to the next phase of the company’s growth.”
Martinez added: “This is a company with iconic global brands, highly talented employees and tremendous potential. I look forward to working with Mike, the other members of the Board, and the management team to build on the company’s brand positioning and global appeal, and create long-term value for shareholders.”