Pressler's compensation package is not nearly as large as the $225-million one Robert Nardelli, former top executive of the Home Depot, is slated to receive. Gap's board decided to give Pressler a total of $14 million in salary, stock options and other compensation if he does not accept employment for two years.
Pressler's departure follows the recent exit of two high-level executives from Gap Inc. Denise Johnston stepped down as president of the Gap Adult division, while Ivy Ross left the position of executive vice president of product design at Old Navy.
Gap's sales have consistently fallen on a monthly basis. Same-store sales were down 8% year over year in December as well as November, resulting in a disappointing holiday season for the 3,100-store retailer. Additionally, same-store sales in its third quarter dropped 5% year over year.
The Gap and Old Navy chains have been hurt by weak traffic that has led to major markdowns, particularly during the holiday season, management has said. When announcing December's sales results at the beginning of this month, Pressler said that management was reviewing strategic alternatives for the two chains.
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