Abercrombie & Fitch Co.’s board has settled a lawsuit filed by a Florida pension plan under which the retailer will be required to beef up its corporate governance policies.
Abercrombie’s board denied any wrongdoing in the settlement, which still has to be approved by a federal district court in Ohio. The terms of the settlement call for the appointment of a chief ethics and compliance officer. In addition, executive pay will be more closely tied to performance.
Executives at Abercrombie declined comment Tuesday.
The issue of corporate governance was a point of contention by activist investor Engaged Capital, a hedge fund. Engaged’s discussions with Abercrombie’s board led to the addition of four new independent directors earlier this year. Separately, the teen retailer also divided the roles of chairman and chief executive officer. Former Sears, Roebuck & Co. chairman and ceo Arthur Martinez became non-executive chairman, with Michael Jeffries retaining the ceo post.
The settlement on Friday came shortly after the lawsuit was filed on the same day by Florida pension plan City of Plantation Police Officers’ Employees’ Retirement System. The lawsuit sought a closer tie-in between executive compensation and performance, as well as limitations of access to non-public data by third parties. It had alleged that Jeffries allowed certain privileges to his life partner, who is not an employee of the company.
While a settlement so soon after a lawsuit is filed is not the norm, it does avoid what could have been a protracted and costly litigation.
@moncler unveiled its latest project, #MonclerGenius, yesterday at Milan Fashion Week. The Italian outwear maker gave show-goers a preview of the monthly collections – which were created by eight designers and creative talents including Pierpaolo Piccioli, Simone Rocha, Craig Green and more – that will start rolling out in the summer.
In honor of Rihanna’s 30th birthday, we took a look back at an interview with the Barbados-native when she was just 18 years old. Here, she talked about her second album, “A Girl Like Me” in 2006. “I want to be me. I want people to fall in love with who Rihanna is, and that’s why I want the album to be about me so people can really find out who this girl Rihanna is, because they only know the ‘Pon de Replay’ girl.” Fast forward 12 years, and she’s released six more albums and has become a powerhouse in both the fashion and music industries. Happy birthday, @badgalriri 🎈(📷: Pavel Antonov) #wwdarchive