Abercrombie Fends Off Activist Shareholder, Keeps CEO

Despite an intense campaign by investor firm Engaged Capital, Abercrombie & Fitch has signed a new employment contract with CEO Mike Jeffries. However the contract ties Jeffries’ salary more closely to Abercrombie’s stock price, addressing some of the concerns voiced by Engaged Capital in a nine-page open letter it sent to the company’s board, calling for the CEO to be replaced. Jeffries will make $1.5 million in base salary, with a bonus plan that could bring him an additional  $4.5 million.