Gap CEO Increases Stake to 13 Million Shares

Gap Inc. said retiring Chief Executive Millard Drexler exercised about 14.5 million options, increasing his stock ownership in the firm.

Drexler exercised all of his in-the-money options, of which 13.5 million were scheduled to expire in November 2003, at an exercise price of $5.79 a share.

He then sold 11 million shares to cover the exercise prices and taxes. The moves increased his total stake in Gap, the nation’s largest apparel company, to about 13 million shares, from 9.5 million. Gap has 870 million shares outstanding.

Shares of San Francisco-based Gap rose 18 cents to $13.30 on the NYSE before the news was announced.