Gap Inc. reduces board size, exec compensation

SAN FRANCISCO Gap Inc. announced that it has decided to reduce the size of its board of directors from 13 to 10 members and to cut the compensation for remaining board members for 2009 by reducing both the annual cash retainer and stock compensation by 15%.

The company also disclosed that Glenn Murphy, chairman and CEO of Gap Inc., volunteered to cut his annual salary by 15%, and merit-based salary increases were eliminated for most headquarters employees for 2009.