It makes sense to reward those who perform well at their jobs, and withhold perks from those who don’t — but it seems Abercrombie & Fitch is a little bit confused on that last point. The company, mired in its “aspirational” $90 prices for cargo pants and its ads featuring gamboling half-dressed models, netted only $254,000 last year. So what’d they do? Take away the CEOs exorbitant travel budget. And then pay him more money to not spend money.

Confused? So are we. CEO Mike Jeffries, dubbed one of five Highest Paid Worst Performers by the Corporate Library in 2008, made $71.8 million in that same year, Time says in a recent story. And now the company he runs is flailing, basically breaking even compared to a $273 million profit in 2008.

But according to an April 13 SEC filing, A&F won’t provide unlimited payments to the CEO for his personal travel on the company jet. Instead, his max reimbursal is $200,000. Still seems like a lot, but then again, Jeffries spent $1.3 million on personal travel in 2008.

Here’s the fun part: he’s being paid a lump sum of $4 million to lose that unlimited travel perk and amend his employment contract, which runs through 2013.

So while A&F under-performs in the recession, he’s being paid a pretty penny not to be exorbitant. Seems… exorbitant, no? We’re sure the stock holders will agree.

Abercrombie’s CEO Grounded — for $4 Million [Time] Thanks to Mary Ann for the tip!

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