Gap Is Facing Great Challenges Ahead Of Its Sales Performance.
Murphy resigned as chairman and CEO of Gap in October last year. Gap's sales performance was poor, and the last annual salary of former CEO plummeted.
Murrphy is the former chairman and CEO of San Francisco H&M flagship store and has received a fixed salary of $1 million 500 thousand since 2010.
In addition, cash dividends and non equity incentive compensation are up to $2 million 700 thousand per year, while in 2013, the income fell by nearly $80%, or only $538 thousand.
It is mainly affected by Gap's brand name, but its sales target and profit level are not up to standard.
In February this year, she became a non-executive director of Art Peck CEO and Robert Fisher.
Murphy's stock awards were $13 million 800 thousand, down 3% from $14 million 200 thousand in 2013.
In spite of the requirements of the securities and Exchange Commission (SEC), bonuses are required to be published on the day of the fair according to the fair market value.
Stock price fluctuation
Murphy may have already realized that the award would be reduced under the influence of the exercise plan and other matters.
"In
Old Navy
Under the good performance and strict cost management, the total return of shareholders in fiscal year 2014 is 10%, and earnings per share have been successfully increased.
In the agency's report, the Commission on pay and management development wrote, "we intend to raise revenue and profit bonus targets in fiscal year 2013. Now it seems that these goals have not been achieved except Old Navy."
In a seven year term, Murphy has actively cut costs and improved operational efficiency, bringing Gap back to profitability.
He closed hundreds of retail stores in the country, but increased the number of foreign markets from 10 countries to 50 countries, including the first opening of the Chinese market.
But because of the present
Retailer
Faced with the development dilemma of the group, some people have speculated that Murphy has been more and more reluctant to leave the garment retailing business.
As he said at a conference call, "I think I can do better."
Gap sales increased 16 billion 440 million last year, up 1.8%, and earnings per share were 2.87 US dollars, an increase of 4.7%.
Gap sales of the same brand declined by 5%, while Old Navy increased by 5%, while Banana Republic remained unchanged. In general, the comparable sales volume of the company was flat.
Old Naavy net sales amounted to US $6 billion 620 million, an increase of 5.8% compared to US $6 billion 260 million in 2013, while Gap declined from 6 billion 350 million US dollars to US $6 billion 170 million, or 2.9%; and Banana Republic rose from 2 billion 870 million US dollars to 2 billion 920 million US dollars, an increase of 1.9%.
Last October, the 7 year old chairman and chief executive officer of Murphy, 52, will be leaving in February 2015. He has appointed him to work alongside him for 8 years. Art Peck, Minister of development, innovation and digital affairs, is the next chairman and CEO of the company.
The news of Murphy leaving Gap Inc. came out, and the industry was shocked.
Insiders pointed out that Murphy, who has been in the company for 7 years, will no longer make a commitment to extend his post, though the board is trying to detain him.
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