Chairman of 'Zara' Founding Family Returns After 10 Years...Stock Price Plummets 6.1%

Ascensio Founder’s Daughter Marta Assumes Chairmanship on April 1 Next Year

Marta Ortega Appointed New Chairperson of Inditex
[Photo by EPA Yonhap News]

[Asia Economy Reporter Park Byung-hee] The founding family of Inditex, the Spanish apparel company that owns the 'Zara' brand, is returning to the position of group chairman after more than a decade. As analyses suggest that the existing governance structure, which had entrusted management to professional executives, is being shaken, Inditex's stock price plummeted.

Major foreign media reported that Inditex announced on the 30th of last month (local time) that Marta Ortega, daughter of founder Amancio Ortega, has been appointed as the new chairwoman. Marta is 37 years old this year and has worked at Inditex for 15 years. She will assume the chairmanship on April 1st next year.

This means the founding family is reclaiming the chairman position after more than ten years. Founder Amancio handed over his position to the current Inditex chairman and CEO in 2011.

Since Chairman Amancio is 85 years old this year, there is an assessment that uncertainties regarding succession have disappeared. However, Inditex's stock price, the largest by market capitalization on the Spanish stock exchange, fell sharply by 6.1% in the Madrid stock market on the same day.

Lorenzo Bernaldo de Quir?s, president of Madrid-based consulting firm Primarket, pointed out, "The reason why Chairman Amancio's succession process was excellent was that the company was entrusted to professional managers and the role of the founding family was reduced," adding, "This move is a step backward in that process."

Inditex stated that the new chairwoman Marta will not take on the chairmanship for management purposes like the current chairwoman Isla. They also stated that Marta mainly handled tasks related to the Zara brand image and will continue to be responsible for related duties. Inditex also announced plans to continue expanding Anglo-Saxon style corporate governance elements. Anglo-Saxon style corporate governance refers to shareholder-centered corporate governance. Inditex's founder Amancio is Spain's richest person, holding about 60% of Inditex's shares.

Along with appointing Marta as chairwoman, Inditex appointed director Oscar Garc?a Maceiras, who handles legal counsel on the board, as the new Chief Executive Officer (CEO). At a press conference, the new CEO Maceiras stated that rather than change, they will maintain and further develop Inditex's existing strategy.

Inditex operates more than 6,600 stores worldwide. After the COVID-19 pandemic, it strengthened online sales and achieved nearly 7 billion euros in sales in the third quarter, the highest ever.

This content was produced with the assistance of AI translation services.