Succession Gap

9 October 2014 By Kevin Allison

Shares of the fashion retailer and the chipmaker fell after the U.S. companies announced internal replacements for their CEOs. Investors may have read the changes as signs of financial trouble. But the boards also failed to adequately convey how they would pass the baton.

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Gap announced on Oct. 8 that Glenn Murphy, its chairman and chief executive, would step down in February after eight years of running the fashion retailer. He will be replaced by Art Peck, the head of Gap’s online business.

Chipmaker Advanced Micro Devices also said on Oct. 8 that Chief Operating Officer Lisa Su would replace Chief Executive Officer Rory Read, effective immediately. Read was CEO for three years. The change came a week before AMD was scheduled to report earnings for its most recent quarter.

Gap’s shares fell 12 percent in early trading on Oct. 9. AMD’s shares fell 7 percent.

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