Youth-oriented fashion chain Abercrombie & Fitch Co on Wednesday revealed chairman and CEO Michael Jeffries had agreed a new long-term contract that will see him scoop a possible $41 million windfall in 2008.

The Ohio-based operator of around 600 stores made the disclosure in a corporate filing with the US Securities and Exchange Commission.

It said it will pay the 58-year-old, who has been CEO since 1992 and chairman since 1998, $1m in annual base salary plus annual bonuses of up to 240 per cent of that salary if it hits certain performance targets.

The lucrative deal includes a $12m "stay bonus" if he still holds both positions through December 31 2008, as well as a "career share award" of one million shares - worth about $29m at current stock market levels. He is also entitled to a private jet for use in North America.

In November, A&F posted an 8.7 per cent hike in third quarter net income to $47.7m from $43.9m on an 18 per cent rise in sales to $419.3m from $354.5m in the prior year period.