NEW YORK (Bloomberg) — Gap Inc. chief executive officer Paul Pressler resigned from the largest US clothing chain after sales declined for almost three years.Chairman Robert Fisher was named interim CEO and president while the company searches for a replacement, San Francisco- based Gap said in a statement today. Pressler is the fifth executive to leave the company this year.

Pressler, hired in 2002 from Walt Disney Co. to help restore Gap’s declining stock price, failed to revive flagging sales at existing stores as younger consumers turned to rivals. The company said earlier this month that it was reviewing strategies for its Gap and Old Navy chains, and Pressler, 50, lowered prices during the holidays to boost revenue.

“The company didn’t meet its financial targets for 2006,” said Arun Daniel, a New York-based analyst with ING Investments LLC. The firm manages $40 billion, including Gap shares. “Clearly its performance was disappointing from a shareholder perspective.”

Gap shares are 62 percent below their record high of $52.88 in February 2000. The shares rose 54 cents, or 2.7 percent, to $20.44 at 7.13 p.m. in extended trading yesterday. The stock was halted today ahead of the announcement before closing down 10 cents at $19.90 in New York Stock Exchange composite trading.

Gap spokesman Greg Rossiter said Pressler and the board came to a mutual decision on his departure, agreeing “this is the right time for new direction and new leadership.” An operator at Gap’s headquarters said Pressler couldn’t be reached at his office.

Pressler is eligible for a separation package of as much as $14 million during the next two years. The amount may be reduced if he takes another position or gets other compensation.

He may receive as much as $1.5 million in salary annually payable over a 24-month period, Gap said, citing Pressler’s 2002 employment agreement. He may receive future bonuses of as much as $1.5 million he would have otherwise gotten as CEO.

Pressler won’t receive a bonus in fiscal 2006. He is eligible for options valued at $9.5 million, assuming a $20 per share price.

He earned $17 million in total compensation in the year through January 2006, including $1.5 million in salary and stock options worth $15.2 million. He didn’t receive a bonus because he failed to meet the company’s financial goals, Gap said at the time.