Banana Republic 2005 Annual Report Download - page 3

Fiscal 2005 was a year of progress
as well as challenges.
During a year where we had disappointing top line
results, we still delivered solid earnings and focused
on creating value for our shareholders by repurchas-
ing 99 million shares for $2 billion and doubling our
dividend. We continued to improve our fi nancial
strength and ended the year with $3 billion of cash
and investments. And we made notable progress
against our longer term growth initiatives, including
the launch of Forth & Towne and the development
of an entirely new e-commerce platform.
We fully recognize, however, that our long-term
success depends on growing our top line. Gap Inc.’s
Board of Directors is highly
aligned in the priority of
supporting management to
improve the business and
generate revenue growth
over time.
Under the leadership of
Paul Pressler, Gap Inc. has
built a strong foundation.
We are a more disciplined
and well-managed company
today and the Board remains
confi dent that this foundation is a competitive
advantage as we work to re-connect with customers
across each of our brands.
I am pleased with the progress the Board has
made over the past year—both from a governance
perspective and as the governing body of this com-
pany. We are a diverse group with experience that
spans disciplines, industries and geographies. Even
with such varied experiences, I believe the Board
works well together—and is asking the tough ques-
tions necessary to challenge and guide management
in the best interest of our shareholders.
In 2005, the Board maintained its commitment to
continually evolve and adopt appropriate governance
best practices. For example, we adopted a majority
vote guideline for director elections—and we
continued our proactive approach to be transparent
in compensation disclosure. In addition to providing a
director compensation table, we are including a CEO
tally sheet in this years’ proxy statement. We have
also approved an improved pay-for-performance bo-
nus structure for executives across the organization.
I’d like to personally thank the Board for its ongoing
contributions and commitment. More detail on Gap
Inc.’s Board of Directors is available on page 62.
My experience at Gap Inc. now spans more than
two decades and I’ve seen many ups and downs in
the business. Clearly, it is more rewarding for our
shareholders when the product offering is resonat-
ing with customers. The Board and I feel strongly
that Gap Inc. has the leadership, talent, systems
and fi nancial strength to return to our position as a
leader in providing customers with the product and
experience they expect from our brands. This will be
the key to re-establishing top line growth and driving
long-term shareholder value.
Robert J. Fisher
Chairman
letter from the chairman
gap inc. 2005 annual report 1
Gap Inc.’s heritage is based on
connecting with people through
great style and experiences—and
by making cultural connections
along the way.