CEO Compensation, Part III

You can add this to the list of reasons I believe CEOs are overpaid:

SAN FRANCISCO - Gap Inc. was already struggling when it brought in Paul Pressler as chief executive more than four years ago. Those troubles look even more daunting as the clothing retailer ushers Pressler out the door with a $14 million severance package that leaves him in a lot better shape than the company he departs.

Pressler's exit, announced late Monday, follows a dismal holiday shopping season that worsened the decay that has been eroding Gap's sales since the spring of 2004.

The deepening problems have dragged down a retailing icon that owns 3,100 stores under the Gap, Old Navy and Banana Republic brands.

Pressler, who became Gap's CEO in September 2002 after leaving his previous job running Disneyland, repeatedly promised to bring back shoppers during the past year, to no avail.

CEO takes a company and drives it down the tubes in four years and walks away with $14 million in severance after being fired.