Spanish fashion retailer giant Inditex said today that Marta Ortega, the daughter of its founder, will replace Pablo Isla, who successfully led the company for a decade.
Ortega will take over as chairwoman of the group in April with a new CEO, as a last step of a generational handover that started a decade ago, the company said.
Shares in Spain's largest listed company fell as much as 5.3% on the news.
Isla took over from her father Amancio Ortega, Spain's wealthiest man, in 2011 as chairman. Isla had been deputy chairman since 2005, the company said.
Oscar Garcia Maceiras, who had become the company's general counsel and secretary of the board in March, will support Marta Ortega as CEE.
He will replace Carlos Crespo, who took up the post two years ago.
Brokerage Kepler said the reshuffle was "moderately negative," highlighting that Isla, who had worked alongside Inditex's founder, was responsible for Inditex's big international expansion over the past 17 years.
"We believe that the timing is not the best as we believe that both Marta Ortega and the CEO Oscar Maceiras have a lot to prove when it comes to their ability to run this big monster in the middle of the COVID crisis," Kepler said.
Crespo will remain the company's Chief Operating Officer.
Marta Ortega, 37, has been working for the company in different areas for the last 15 years.
"I have always said that I would dedicate my life to building upon my parents' legacy, looking to the future but learning from the past and serving the company, our shareholders and our customers," she said in a statement.
Amancio Ortega still owns 59.29% of Inditex, while Sandra Ortega, a daughter from his first marriage, is the second largest shareholder with a 5.05%, Refinitiv data showed.
