Donald Fisher, founder of Gap Inc. (San Francisco), has announced his decision to step down as chairman of the board, effective after the company's annual shareholders' meeting in May 2004.
Fisher, 75, will assume the role of founder and chairman emeritus and continue to perform his current responsibilities as an executive of the company. He also will be advising the ceo and chairman on corporate strategy, governance and other matters. In addition, Fisher intends to stand for re-election as a director at the shareholders' meeting.
The company's board has appointed Robert Fisher, 49, Donald Fisher's son who currently serves as a director, as the new non-executive chairman. The appointment, which will also take effect after the annual shareholders' meeting in May, was based on the recommendation of the board's governance, nominating and social responsibility committee — comprised of the board's independent directors — as part of its ongoing succession planning process.
“Since we sold our first pair of jeans in 1969, our company has operated with the belief that to succeed, we always must be willing to change,” the elder Fisher said. “We've changed a lot in the past year. We've hired a new ceo, strengthened our board and dramatically improved our performance. Paul Pressler has done a terrific job in his first year, and I'm more confident than ever about our company's long-term prospects. I believe now is an appropriate time to make this transition as chairman.”
Gap was launched in August 1969 with a single store in San Francisco, initially selling only music and jeans. Fisher created the idea after a frustrating experience shopping for a pair of jeans in a department store. During the next three decades, Gap evolved into an iconic specialty apparel brand, and the company has become one of the largest specialty apparel retailers in the world, with more than 3000 store locations in North America, Europe and Japan under the Gap, Old Navy and Banana Republic brands, and annual sales of approximately $15 billion.
Robert Fisher has worked in various operating roles at the company for 19 years, starting as a store manager. In 1999, he resigned as president of the Gap division and as a corporate executive vp and left the company to pursue personal interests. Prior to heading the Gap division, Mr. Fisher held a variety of senior executive leadership positions, including coo, cfo and president of Banana Republic. He has served as a director since 1990.
“Don, Bob and the entire board have provided incredible support to me and our management team,” said Pressler.
Gap Inc. has maintained separate chairman and ceo roles since 1995, when Donald Fisher stepped down as ceo. The company currently has 13 directors, including Pressler. Nine of the 13 directors are independent, as defined by SEC and NYSE rules.