Gap CEO Received No Bonus in 2005

[question everything]

AP
Gap CEO Received No Bonus in 2005

Tuesday March 28, 3:59 pm ET

Gap Inc. CEO Pressler Did Not Receive Bonus in 2005

NEW YORK (AP) -- The chief executive officer of Gap Inc. did not receive a bonus in 2005 for the first time since he took charge of the clothing chain in 2002, Gap disclosed in a regulatory filing on Tuesday.

Chief Executive Paul Pressler was paid no bonus for the fiscal year ended Jan. 28, 2006, Gap said in its annual 10-K report filed with securities regulators. He received his regular base pay of $1.5 million, as well as other compensation totaling $233,489.

Under terms of Gap's contract with Pressler in September 2002, the company agreed to pay him the $1.5 million annual base and a guaranteed bonus of $1.875 million in April 2004. In fiscal 2003, Pressler's bonus totaled $3.1 million and other compensation of roughly $420,000.

Gap, the nation's biggest specialty clothing retailer, has been trying to engineer a turnaround amid several straight months of declining sales. In February, the company reported its fourth-quarter profit fell 11 percent and issued a cautious full-year forecast that fell short of Wall Street expectations.

(snip)

http://biz.yahoo.com/ap/060328/gap_inc_bonus.html?.v=1

[meegbear]

1. Man that sucks ...

trying to support a family on $1.5M a year. And with the repugs cutting food assistance programs, he's screwed.

[question everything]

3. Still, a nice change from regular business

where a business does not perform, shareholders see the value of their investment sinks, while executives continue to be paid bonuses.

[Wickerman]

2. Wow, the guy only has benefits worth $233,489?

that sucks almost as much as the Gap.

:nopity:

[Fleshdancer]

6. lol

maybe they can take the money not paid in the bonus and invest in denim that doesn't disintegrate after the third wash.

[Fleshdancer]

4. good.

It seems to me that paying huge bonuses to CEO's is just plain stupid. If you can make millions based on one year of profits, what incentive would a CEO have for focusing on the long term health of the corporation? All one would have to do is create short term gains for a few years, receive a ridiculous bonus on top of their already ridiculous salary, invest wisely and then retire. :shrug:

[LynneSin]

5. As much as we can badmouth - The Gap is considered a Blue Company

It's received high ratings at http://www.buyblue.com and the company includes Banana Republic and Old Navy.

[VOX]

7. At least he's a Democratic Party donor, unlike most big CEOs...

http://www.newsmeat.com/fec/bystate_detail.php?city=SAN+FRANCISCO&st=CA&last=pressler&first=paul
AND
http://www.newsmeat.com/fec/bystate_detail.php?city=Pacific+Palisades&st=CA&last=pressler&first=paul

There are four donations to Rethugs. All the rest are to Democratic candidates (the ones that aren't to business-related PACs). His most recent giving is hard-core Democratic.

Pressler is all right in my book. :thumbsup: