Sept. 28, 2009 – The value of Abercrombie & Fitch dropped by 2/3rds and more than $50 per share in 2008, yet CEO Michael Jeffries “was awarded total compensation of $71.8 million, with a base salary of $1.5 million. . . His compensation package included a $6 million ‘stay bonus’ designed to keep him on board, despite his 17-year tenure” a Corporate Library study revealed according to Yahoo Finance.
International Paper lost 63% and $21 per share that same year, slightly better than Abercrombie. That did not stop CEO John Faraci from drawing a total of $28.2 million according to the report. As a means of maximizing his compensation – or as wags might say, a hedge in case he destroyed the company – Faraci reaped “$21 million in pension payments while still working at the company. Faraci, 59, has been CEO for six years.” There was no comment on whether other IP employees were allowed to draw pensions while still actively employed.
Other CEOs identified as overpaid by The Corporate Library included James W. Steward of BJ Services Company at $34.6 million and Brian Roberts of Comcast Corp. earning $40.8 million.