This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The 5 Dumbest Things on Wall Street This Week: May 24

Stocks in this article: ANF NWS YHOO AAPL JPM

5. Abercrombie's Airhead

Michael Jeffries may publicly state that his primary goal is selling the "cool kid" aspiration. Nevertheless, we here at the Dumbest Lab know what really drives the Abercrombie & Fitch (ANF) CEO, and it's more Tattoo from Fantasy Island than teen fantasy.

Yeah, you guessed it. The plane! The plane!

According to an SEC filing late last Thursday, Jeffries total compensation sank over 80% last year to $8.2 million from over $48 million. His base salary did inch up 2% to $1.53 million, however, he was not granted any long-term incentives tied to the retailer's stock in 2012. Hey, that's only fair. A&F's stock fell 35 basis points last year and 14% in 2011 while the SPDR S&P Retail ETF (XRT) rose nearly 21% and 10% respectively, so he shouldn't pocket the same handsome sums as he did in years past.

Still, while his overall package took a jarring drop, Jeffries did receive a $200,000 bump related to his use of the company aircraft. That boost certainly must have helped ease the pain of his pay reduction, because anybody that's followed the jet-setting CEO knows he likes his jet to be set precisely to his own princely standards.

For those that may have forgotten, Jeffries was deposed three years ago as part of a discrimination lawsuit by a pilot who claimed he was canned illegally and replaced by a younger man. The since-settled suit revealed Jeffries's wacky specifications for the airplane's flight attendants, from the way they address him to the kind of cologne they spritz on.

For example, Jeffries's detailed flight instructions command male staffers to wear Abercrombie polo shirts, flip-flops, a "spritz" of the firm's cologne, sunglasses and boxers. And when Jeffries makes a request, the reply must be "No problem" as opposed to "Just a minute" or "Sure."

He even has rules for displaying the toilet paper!

Talk about a load of crap. Who does this guy think he is? Mr. Rourke?

Anyway, outside of his upped airplane allowance, Jeffries also received an additional $107,227 last year for "personal security," according to the filing. And considering the increasing level of animosity he's been facing after the resurfacing of a controversial 2006 Salon interview, that stipend could not have come at a better time for the high-flying CEO.

Jeffries snottily told the interviewer at the time, "Candidly, we go after the cool kids. We go after the attractive all-American kid with a great attitude and a lot of friends . . . A lot of people don't belong in our clothes , and they can't belong."

Those haughty comments from seven years ago came back to haunt Jeffries this past week when protestors went viral in condemning A&F for not offering women's clothing in larger sizes. The press got so bad that Jeffries was forced to apologize this week to stem the backlash.

"I sincerely regret that my choice of words was interpreted in a manner that has caused offense," said Jeffries in a statement. "We are completely opposed to any discrimination, bullying, derogatory characterizations or other anti-social behavior based on race, gender, body type or other individual characteristics."

Of course, he's still opposed to offering women's XL and XXL sizes at his stores. That policy hasn't fallen with his paycheck. Nor has his obnoxious attitude toward less-than-beautiful shoppers.

Come on Jeffries. Stop acting like a jerk.

Don't think you are above everybody else just because you fly around in a private plane.

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs