Forex Investment

SAN FRANCISCO - Gap Inc.’s board of directors said Monday Paul Pressler will step down as president and chief executive and will resign from his board seat, effective immediately.

The company did not give a reason for Pressler’s resignation but said the board and Pressler “mutually agreed” to the change.

Robert J. Fisher, the company’s current non-executive chairman of the board of directors, will serve as president and CEO while the company searches for a permanent replacement for Pressler.

Gap said a search committee has already been formed by the board and will be led by independent director Adrian D. Bellamy. The board said they will search for someone with retailing and merchandising experience, ideally in the apparel sector.

Fisher has worked at the company since 1980 and has held a variety of management positions, including president of Banana Republic and president of Gap brand.

Under his employment agreement, the company said Pressler is entitled to about $14 million, assuming a stock price of $20 per share.

Investors have speculated for months whether Gap might force Pressler to leave or consider takeover offers in response to a prolonged sales slump that has stretched over the past six years.

The retailer posted more disappointing sales numbers for the holiday shopping season, forcing Pressler to lower the company’s earnings guidance for the third time in five months.

With the revisions, Gap profit for the fiscal year ending in January is expected to be about $300 million lower than what the company had hoped for when the year began.

Gap tried to boost its stock price and investor confidence with other changes in management in the past month. The president of Gap’s adult clothing division and Old Navy’s executive vice president of product design both left in January.

Besides the Gap chain, the company also owns Old Navy, Banana Republic and Forth & Towne.

Gap shares fell 10 cents to close at $19.90 on the New York Stock Exchange. 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

SAN FRANCISCO - Gap Inc.’s board of directors said Monday Paul Pressler will step down as president and chief executive and will resign from his board seat, effective immediately.

The company did not give a reason for Pressler’s resignation but said the board and Pressler “mutually agreed” to the change.

Robert J. Fisher, the company’s current non-executive chairman of the board of directors, will serve as president and CEO while the company searches for a permanent replacement for Pressler.

Gap said a search committee has already been formed by the board and will be led by independent director Adrian D. Bellamy. The board said they will search for someone with retailing and merchandising experience, ideally in the apparel sector.

Fisher has worked at the company since 1980 and has held a variety of management positions, including president of Banana Republic and president of Gap brand.

Under his employment agreement, the company said Pressler is entitled to about $14 million, assuming a stock price of $20 per share.

Investors have speculated for months whether Gap might force Pressler to leave or consider takeover offers in response to a prolonged sales slump that has stretched over the past six years.

The retailer posted more disappointing sales numbers for the holiday shopping season, forcing Pressler to lower the company’s earnings guidance for the third time in five months.

With the revisions, Gap profit for the fiscal year ending in January is expected to be about $300 million lower than what the company had hoped for when the year began.

Gap tried to boost its stock price and investor confidence with other changes in management in the past month. The president of Gap’s adult clothing division and Old Navy’s executive vice president of product design both left in January.

Besides the Gap chain, the company also owns Old Navy, Banana Republic and Forth & Towne.

Gap shares fell 10 cents to close at $19.90 on the New York Stock Exchange. 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.