Abercrombie & Fitch Co.'s (NYSE:ANF) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Abercrombie & Fitch will host its Annual General Meeting on 12th of June
• Total pay for CEO Fran Horowitz includes US$1.40m salary
• The total compensation is 32% higher than the average for the industry
• Over the past three years, Abercrombie & Fitch's EPS grew by 45% and over the past three years, the total shareholder return was 316%

CEO Fran Horowitz has done a decent job of delivering relatively good performance at Abercrombie & Fitch Co. (NYSE:ANF) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 12th of June. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Abercrombie & Fitch

Comparing Abercrombie & Fitch Co.'s CEO Compensation With The Industry

Our data indicates that Abercrombie & Fitch Co. has a market capitalization of US$8.7b, and total annual CEO compensation was reported as US$15m for the year to February 2024. We note that's an increase of 36% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.

For comparison, other companies in the American Specialty Retail industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$11m. This suggests that Fran Horowitz is paid more than the median for the industry. Furthermore, Fran Horowitz directly owns US$91m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$1.4m	US$1.3m	9%
Other	US$14m	US$9.7m	91%
Total Compensation	US$15m	US$11m	100%

On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. Abercrombie & Fitch pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Abercrombie & Fitch Co.'s Growth

Abercrombie & Fitch Co. has seen its earnings per share (EPS) increase by 45% a year over the past three years. Its revenue is up 20% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Abercrombie & Fitch Co. Been A Good Investment?

Boasting a total shareholder return of 316% over three years, Abercrombie & Fitch Co. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Abercrombie & Fitch that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.