(Filed Under Fashion News). The Gap Inc. has announced plans to reduce the size of its board of directors from 13 to 10 members.

Additionally, the company plans to reduce the annual cash retainer and stock compensation for the remaining board members by 15 percent. The company also eliminated merit-based salary increases for the majority of their headquarters employees for 2009.

According to the company, Howard Behar and Penelope Hughes agreed to decline from standing for re-election for a new term at the upcoming annual shareholders meeting in May. Additionally, company co-founder Doris Fischer will decline from standing for re-election and will assume the role of honorary lifetime director. The company also reported that chairman and CEO of Gap Inc. Glenn Murphy volunteered to cut his salary by 15 percent.

According to the company, in the 2008 fiscal year they reduced operating expenses by $478 million, and the recent measures taken by the board of directors are part of the company’s simplification and cost management philosophy.

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Published 03-19-2009 by Amanda Torres Price