Glenn Murphy, chairman and chief executive officer of Gap Inc., received total compensation of $9.3 million in 2008, his first full year on the job.
This story first appeared in the April 8, 2009 issue of WWD. Subscribe Today.
According to a regulatory filing with the Securities and Exchange Commission, Murphy’s take included salary of $1.5 million, stock and option awards valued at $4 million and non-equity incentive pay of $3 million.
The ceo received other compensation of $834,434, including $211,244 for personal use of a company airplane and $477,044 in expenses for his relocation to California from Canada, where he was chairman and ceo of Shoppers Drug Mart Corp., the country’s largest drug store chain. He joined the retailer in August 2007, and received compensation of $6.3 million that year.
Stock and option awards are reported based on SEC accounting guidelines. The compensation reported in these categories was not necessarily realized because of vesting schedules and falling share prices.
For 2009, Murphy volunteered to reduce the portion of his compensation that comes as salary by 15 percent to $1.3 million, which will also trim the potential size of his bonus.
Among Gap’s other top executives, Sabrina Simmons, executive vice president and chief financial officer, saw her compensation rise 69.2 percent to $2.7 million on a 35.1 percent salary increase to $675,000, and Marka Hansen, president of Gap North America, received a 1.2 percent increase to $4.5 million as her salary remained $900,000.
Last year, Gap’s net income rose 16 percent to $967 million, or $1.34 a diluted share, while sales declined 7.8 percent, to $14.53 billion, and fell 12 percent on a same-store basis. By division, Old Navy North America sales declined to $5.2 billion from $6.2 billion in 2007, Gap North America sales were $4.2 billion versus $4.5 billion and Banana Republic North America sales dropped to $2.4 billion from $2.5 billion. However, increases were logged at international, to $1.7 billion from $1.6 billion, and in the direct area, $1.03 billion from $903 million.