Right Time for New Leadership, Inditex Chairman Says, as Founder's Daughter Prepares to Take His Place -- Update
By Joshua Kirby
Now is the right time for a change of senior management at
Industria de Diseno Textil SA, current boss Pablo Isla said, after
the Spanish fashion group appointed its founder's daughter to take
the helm as chairwoman next year.
Mr. Isla will resign his position as Inditex chairman effective
March 31, and will be replaced by Marta Ortega Perez, a daughter of
Amancio Ortega, who founded the company in Spain's northwestern
Galicia region in 1963. Unlike Mr. Isla, who serves as executive
chairman, Ms. Ortega will have a nonexecutive chairwoman role, and
will also serve as proprietary director as a shareholder in the
Mr. Isla declined to specify whether he would continue in any
official role within the group after the succession. "I am focused
on carrying out the transition," he said in a conference call after
the news. "After that, we will see," he said, adding that now was
the optimal time for a change in leadership, but that the company's
business model and values would continue as before.
Ms. Ortega has worked closely with the group's most important
fashion brand, Zara, and will continue to oversee the brand's image
and product offer, the company said in a release. Mr. Isla added
that the incoming chairwoman knows the company very well, and has
been very active within it. Ms. Ortega didn't participate in the
call with reporters.
Mr. Isla said his successor will work closely with new Chief
Executive Oscar Garcia Maceiras, a former group general secretary
whose appointment as CEO is effective immediately. Mr. Garcia
replaces Carlos Crespo Gonzalez, who becomes group chief operating
officer, with a remit covering digital transformation and
sustainability. Mr. Garcia said as the new CEO, he would continue
to develop the business trends the group has worked on in recent
To help ensure a smooth transition, Inditex has also created a
new management committee within the group structure. The committee
will include Mr. Crespo and group finance chief Ignacio Fernandez
Fernandez, as well as representatives from the group's major brands
including Zara, Massimo Dutti and Pull & Bear.
The departure of the experienced Mr. Isla could nevertheless
leave a temporary management void at the top of Inditex, analyst
Cedric Rossi of Bryan Garnier said after the news. Mr. Isla, in
place since 2011, has overseen a major expansion phase at the group
and could leave a "great void" behind him, though the new
management committee should boost the organization's structure and
limit managerial risk ahead, Mr. Rossi said.
Shares in Inditex dropped Tuesday after the news. At 1248 GMT,
shares were trading 5.9% lower at EUR27.93.
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(END) Dow Jones Newswires
November 30, 2021 08:06 ET (13:06 GMT)
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