As of Thursday, October 9, 2014
Glenn Murphy, Gap Inc.’s chief executive officer and chairman, announced his resignation from the company on Oct. 8.
A Gap statement said Murphy “made the personal decision to retire at the end of the fiscal year.” The Gap board selected Art Peck, president of the retailer’s Growth, Innovation and Digital division, to succeed Murphy. Peck will officially start serving as CEO on Feb. 1.
Bob Fisher will succeed Murphy as a non-executive chairman of the board. Fisher is the son of Gap founders Donald and Doris Fisher, and he has a 35-year relationship with the company, according to a company statement. He will also take his new seat on Feb. 1
Murphy joined Gap in 2007 after leading Canadian retail chain Shoppers Drug Mart. Murphy’s time at Gap was distinguished by acquiring new brands and retailers such as Piperlime and Intermix and expansion to other countries such as China.
In a statement, Murphy said that Gap was poised for continued growth.
“Today, Gap Inc. is a formidable global fashion retailer with a strong foundation in place for long-term growth, therefore making this an appropriate inflection point for me to pass the baton to a leader who will take our portfolio of brands to even greater heights,” Murphy said. “With consumer expectations rapidly evolving, Art is the right leader at the right time to build on our success and ensure a compelling experience for our customers across both our physical and digital channels.”
Gap’s CEOs earn an annual base salary of $1.3 million and receive an annual performance-based bonus targeted at 175 percent of the annual base salary. The CEO’s equity includes 300,000 stock options granted on a fair-market value, according to Gap’s financial documents.
On Oct. 8, Gap also reported its sales performance for September. Gap Inc.’s comparable-store sales for the month were flat compared with a 3 percent decrease last year. Net sales for September were $1.48 billion compared with net sales of $1.46 billion last year.
Financial outlet Marketwatch reported that Gap shares fell 7 percent on the announcement of Murphy’s resignation.