SAN FRANCISCO — Gap Inc. dumped Paul Pressler as chief executive yesterday after a year of broken promises that culminated in a dismal holiday shopping season to deepen the clothing retailer's misery.

Pressler, Gap's CEO since September 2002, will receive a severance package valued at $14 million as he walks away from the disarray that has dragged down one of the nation's largest merchants.

The San Francisco-based company, which owns 3,100 stores under the Gap, Old Navy and Banana Republic brands, has been mired in a sales funk since the spring of 2004.

As it became increasingly apparent that things weren't improving, more investors became convinced Pressler would be ousted. In a statement released yesterday, Gap said its board and Pressler "mutually agreed" it was time for him to leave.

"This was a long time coming," said retail industry analyst Jennifer Black. "They need to bring in a visionary, an incredibly talented merchant who can see quite a ways into the future."

Gap named Robert J. Fisher, the son of founder Donald Fisher, as CEO on an interim basis.

The younger Fisher has previously held several top jobs at Gap and has been the company's nonexecutive chairman since May 2004, when he stepped into his father's shoes. The senior Fisher, Gap's largest shareholder, remains chairman emeritus and will participate in the search for a new CEO.

After Gap's latest letdown during the holidays, more investors began to bet that the company would be sold to a deep-pocketed buyout firm interested in engineering a turnaround.

The speculation intensified this month amid reports that Gap had hired investment firm Goldman Sachs to explore "strategic alternatives" — financial jargon often used when companies are about to throw out a "for sale" sign.

The shake-up could signal Gap's intention to remain independent. Given Gap's problems and an estimated $20 billion sale price, several analysts doubted the company's ability to attract a buyer.

In a statement issued yesterday, Robert Fisher made it sound as if Gap will try to fix its problems on its own.

"During this important transition period for our company, the board of directors and I are committed to working with our employees to enhance our focus on ... reinvigorating our brands and charting a new course for the future that will deliver strong returns for our shareholders," he said.

The Fishers hold the key to any possible sale because they own more than 25 percent of the company's stock.

Gap shares fell 10 cents to close at $19.90 on the New York Stock Exchange, then gained 50 cents in extended trading after Pressler's departure was announced.

Although she considers a sale of the entire company unlikely, Dana Cohen of Banc of America Securities believes Gap might auction off Banana Republic, the one part of its operations where sales have been rising recently.

A sale of Banana Republic might fetch about $2.5 billion, Cohen estimated. Alternatively, she believes Gap could raise about $500 million by spinning off Banana Republic in an initial public offering of stock.