1. In the same week, Fashion lost two living legends: Italian designer Nino Cerruti passed away on 15 January and, just three days later, so did legendary Vogue editor André Leon Talley. Now retired, both were part of the elite of creators and journalists who, in the 20th century, turned fashion into the cultural and economic global phenomenon that we know today. To better understand their legacies, we recommend reading this obituary of the Italian creator written by Mariana Torres for hola.com and this heartfelt article by Hamish Bowles for vogue.com in which he recounts his memories of André Leon Talley.
2. LVMH bets on Aime Leon Doré: the French luxury giant has acquired an undisclosed stake in the New York-based brand through its investment company LVMH Luxury Ventures. ALD is an independent brand founded in Queens in 2014 by creative Teddy Santis whose specialty is updating American fashion classics by paying homage to the country’s ethnic richness and continental roots. His unique reinterpretation of American fashion has earned him the devotion of avant-garde consumers since its beginnings. For more information, read this article by Robert Williams for Business of Fashion.
3. Inditex perseveres in its sustainability goal. The Galicia-based group has improved its results in “The Global 100”, one of the most reputable corporate sustainability rankings on a global scale. More details of the news in this article by Eva García Morales for Fashion Network España.

Buen fin de semana!

Image: Getty

The Board of Directors of Inditex resolves the appointment of Marta Ortega as Chairwoman, and Óscar García Maceiras as CEO

The Board of Directors of Inditex, at the proposal of its Chairman Pablo Isla and its founder Amancio Ortega, and following the proposal of the Appointments Committee, has approved the appointment of Marta Ortega Pérez as Chairwoman of the Group, with the status of dominical director, an appointment that will be effective as from 1 April 2022, according to the relevant fact published today by CNMV (Spanish National Stock Market Commission).

Likewise, Óscar García Maceiras, until now General Secretary and Secretary of the Board, has been appointed CEO of Inditex. Óscar García will take over from Carlos Crespo González, who until now and for approximately two years has had a long career in the company after joining in 2001.

“We are enormously grateful to Pablo Isla for his extraordinary work and dedication over all these years. I would like to highlight his immense contribution, not only to our Group but also to the fashion industry in general. I have lived this company since my childhood and I have learned from all the great professionals I have worked with over the last 15 years. I have always said that I would dedicate my life to developing the legacy of my parents, looking to the future but learning from the past and in the service of the Company, our shareholders and our customers, wherever I am most needed. I am deeply honoured and committed by the trust that has been placed in me, and enormously excited about the future that we are all going to undertake together. Marta Ortega.

The new organisational structure incorporates a Management Committee, made up of executives from different corporate and business areas and with a long track record in the Group, as follow:

• Carlos Crespo González, General Manager of Operations, Sustainable and Digital Transformation, INDITEX, S.A. Digital, INDITEX
• Pablo del Bado Rivas, General Manager, PULL&BEAR
• Miguel Díaz Miranda, Chief Financial and Operations Officer, ZARA
• Ignacio Fernández Fernández, Chief Financial Officer, INDITEX
• Javier García Torralbo, General Manager of e-Commerce, ZARA
• Begoña López-Cano Ibarreche, Chief People Officer, INDITEX
• Beatriz Padín Santos, Women’s Director, ZARA
• Jorge Pérez Marcote, General Manager, MASSIMO DUTTI
• Óscar Pérez Marcote, General Manager, ZARA

The appointment of Carlos Crespo in 2019 was a foreseeable move, as he was considered until then, in fact, the number 2 of Pablo Isla, until now the Chairman of the Board of Inditex (and former CEO of the group), after his resignation today. His position as the group’s internal audit director had given him extensive knowledge of all the company’s departments. He was considered by many to be a “man of the house” and this led many to believe that he would be accepted by the whole team. However, it was also pointed out at the time that he had little connection with the product area, where Amancio Ortega’s trusted managers were and are to be found.

For some time now, there have been rumours of a change and reorganisation of the group’s management structure, motivated by the distrust of some of the executives close to Amancio Ortega, which presages the imminent departure of Carlos Crespo as CEO. Who will be his successor? This morning it was confirmed that he will be succeeded by Óscar García, until now Secretary General of the Board.

Until now the composition of the Board was as follows:

Source: www.inditex.com/es/compliance/buen-gobierno-corporativo/consejo

According to the last Annual Corporate Governance Report of Inditex, the chief executive officer (Carlos Crespo) as well as the executive chairman (Pablo Isla), would be entitled to receive a gross severance payment for an amount equivalent to 2 annual payments calculated on their respective fixed remuneration established for the current year, in the event that their contract is terminated unilaterally by the Company (as seems to have been the case), as well as the resignation of the managing director or the executive chairman due to certain causes (among these, company succession, or change of ownership of the company affecting more than 50% of the share capital or voting rights, provided that, at the same time, there is a significant renewal of the governing bodies or a change in the content and approach of its main activity, if the request for termination is made within 6 months following the occurrence of such succession or change. For these purposes, no succession or change of ownership shall be deemed to exist in the case of a direct or indirect family succession in the ownership of the company.

Pablo Isla and Carlos Crespo’s departure joins other departures that have taken place in recent months. Rodrigo Loderio (former Security Director), Antonio Abril Abadín (former General Secretary of the Board), Ramón Reñon (former Deputy General Manager to the Chairman), Ramón Rubio (former Financial Manager of Massimo Dutti) and Jordi Blasi (former Head of Zara’s men’s division) are some of the executives who have left the company.

Until now, Inditex has known how to listen to the market and take advantage of the right moment to review its structures and adapt its processes.

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