Gap CEO Pressler steps down

NEW YORK (CNNMoney.com) -- Chief Executive Paul Pressler is stepping down from his position at clothing retailer Gap, the company said Monday.

Robert Fisher, chairman of the company's board of directors, will serve as CEO in the interim. Fisher has spent nearly 30 years at Gap and has held various posts at the company, including chief financial officer and president of the Gap brand.

Paul Pressler is stepping down as CEO of Gap.

Gap shares have gained in the past year, but sales have slumped over the same period.

Pressler will also resign his seat on the company's board.

Pressler's departure comes amid declining sales at San Francisco-based Gap (Charts), whose brands also include Banana Republic and Old Navy.

The company reported sales fell 8 percent in December - even after the retailer slashed prices during the critical holiday season.

Gap reshuffled management earlier this month in the face of its weak holiday season, and speculation about Pressler's departure was rampant.

"To some degree, this was expected. The company performance has not been up to the satisfaction of the investors and the company has repeatedly failed to meet its objectives. This is largely as a result of that," Arun Daniel, an analyst at ING Investment Management, told Reuters.

"I have enjoyed the opportunity to lead this iconic company over the past four years. It has been a pleasure to work with the management team and such talented people throughout the organization," Pressler said in a statement.

Pressler, a former Disney (Charts) executive who joined Gap in 2002, is eligible for about $14 million in severance, assuming a stock price of $20 a share, if he doesn't accept other employment or compensation in the next two years, Gap said.

The company said that a search team has been formed to look for a new CEO and that it is seeking a leader with retail experience who can execute strategies while maintaining financial discipline.

"While this certainly opens up the speculation for a private equity/LBO possibility at Gap, still the company could very well go into a restructuring situation and hire a new CEO. But, the speculation is going to be more private equity or LBO because that's been talked about for some time now," Daniel told Reuters.

Pressler is the latest CEO to get dumped in the retail sector, following Bob Nardelli's departure at Home Depot (Charts) earlier this month.

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