Engaged Capital, a hedge fund that owns a small stake in Abercrombie, issued a public letter in December 2013 calling for Jeffries’s resignation and for the company to consider putting itself up for sale… Under pressure from shareholders, Abercrombie restructured Jeffries’s contract to tie his bonus to the company’s performance. The contract was for just one year. In January 2014 the board stripped Jeffries of his role as chairman and brought in four independent board members.
“It took a very dominant, controlling, detail-oriented visionary to build Abercrombie,” says Richard Jaffe, an analyst at Stifel Financial. “And those very same traits undermined the company, kept it from evolving.”
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