NEW YORK — Bonuses may be flowing on Wall Street, but not at underperforming Gap Inc.
The San Francisco-based specialty retailer's poor 2005 performance kept bonuses and salary increases virtually nil compared with 2004, according to a proxy statement filed by the company Tuesday that listed compensations for its top five highest-paid executives.
Paul S. Pressler, Gap Inc.'s chief executive officer, did not get a bonus and saw no change in his base salary, which stayed flat with 2004 at $1.5 million. Pressler was granted 500,000 shares in options valued at $4.17 million, however.
Jenny Ming, president of the Old Navy division, also saw no bonus and no salary increase. Her salary remained at $1 million.
Cynthia Harriss, president of Gap North America division, received a "modest" bonus of $59,853, but that was based on about the first third of 2005, when she successfully led the outlet division, according to the filing. Harriss' 2005 salary was $715,961. She joined Gap in 2004, after serving as president of the Disneyland Resort division of The Walt Disney Co.
Two other top executives saw slight salary gains. Byron H. Pollitt Jr., executive vice president and chief financial officer, made $675,000 in salary, against $668,269 in 2004. He did not get a bonus for 2005, while the year before he received a $259,268 bonus.
Nicholas J. Cullen, former executive vice president and chief supply chain officer, received $597,846 in 2005 salary, compared with $582,788 the year before. He did get a $150,000 bonus, but it was less than 2004's, when he received a $226,103 bonus. He left the company in early March.
Gap's management incentive program for bonuses is based mostly on reaching earnings targets as well as on goals for economic profit and free cash flow.
In other Gap news, Susan Cooper, vice president for creative recruiting and staffing at Gap's New York offices and a veteran of the company, will be leaving in June. "I've absolutely loved working for Gap Inc. for the past 18 years," Cooper said in a statement. "I take great pride in the creative talent we've brought into the company and the strong recruiting team I've helped to build. With all that in place, it feels like the right time for new challenges."The $16 billion Gap has recently seen several high-level departures. In addition to Cullen, Andrew Rolfe, president of Gap International, left in February to join TowerBrook Capital Partners. Last October, Pina Ferlisi, senior vice president of Gap's adult product development and design, left and eventually joined Generra. She was replaced by Charlotte Neuville.
In February, Gap reported declines in fourth-quarter earnings and sales and year-end sales, margins, earnings and traffic. "None of us is satisfied with the overall results," Pressler said when the financial report came out. "We did not deliver on expectations. We know we can do better."
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