Gap Which Changes Start When

Gap (NYSE:GPS) made a surprise appointment with Glenn Murphy taking over as Chairman. Some point to his lack of apparel expertise and shriek. Others point to his successful retail background and shout hurray its time for a change. Well its time for something at Gap. The stock has done nothing for something like three years.

After a six month search its a relief that someone will take the job. Gap may have learned a few things about itself as it interviewed a variety of candidates. While we always point to the CEO as the knight in shining armor we should also look at the board of directors who presided over the past three years and essentially proved helpless in creating shareholder value.

Here is something that everyone should know about the new guy. At his previous job as boss over Shoppers Drug Mart he took the company public and essentially tripled the stock over about five years. When he was hired Shoppers Drug Mart had been taken private by a consortium led by KKR. He has a wealth creation pedigree. True he has no apparel experience. Isn't that what divisional staff are for?