NEW YORK — Former Gap Inc. president and chief executive officer Paul Pressler received $8.9 million in total pay for fiscal 2006, according to a regulatory filing.
In a proxy filed with the Securities and Exchange Commission on Thursday, Gap said Pressler earned a base salary of $1.5 million and was not awarded a bonus. He did receive option awards valued at $3.2 million, and over $4.1 million in other compensation.
Pressler stepped down from his post as president and ceo on Jan. 22 and will remain a nonexecutive employee for two years as outlined in his 2002 employment agreement. As a nonexecutive employee, the proxy said he will receive a base salary of $1.5 million annually, any bonus paid under the executive management incentive compensation plan that he would have received during the continuation period, and health insurance valued at $19,600.
The remaining stock options granted to Pressler in 2002 that were scheduled to vest during the continuation period were accelerated to the date of his termination. The value of these accelerated options was $9.4 million, according to the filing.
The SEC filing said that if Pressler accepts employment with a competitor of Gap he will no longer receive these benefits and will terminate his contract.
"The departure of Mr. Pressler in January 2007, along with the company's business performance and external market speculation regarding corporate structure changes, created substantial uncertainty and distraction among key executives. The committee determined that the lack of formal income protection in the case of involuntary termination (other than for cause) was a contributing factor to this uncertainty and that action was required to mitigate the associated business risk created by the potential departure of key executives," the filing said.
Jenny Ming, former Old Navy president, who left the company in October 2006, received total compensation of $1.3 million, which includes a salary of $711,539. Cynthia Harriss, former Gap president who left in February 2007, was paid total compensation of $2.2 million, which included a salary of $886,057.
Robert Fisher, chairman, interim president and ceo, was compensated as chairman and a nonemployee director, receiving a total pay package of $299,791, but did not receive any additional compensation for his service as interim president and ceo.
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