- Push-out Score determined
- After about 14 years in the position
- Carlos Crespo taking over
- Isla will remain as Executive Chairman at Inditex
(exechange) — A Coruña, Spain, May 23, 2019 — Pablo Isla, chief executive of Inditex, leaves the position. As announced by Inditex SA in a news release on Thursday, May 23, 2019, Pablo Isla leaves his post as Chief Executive Officer at the clothing company after about 14 years in the role, effective in July 2019.
It is the end of an era.
Pablo Isla’s duties as CEO will be taken over by Carlos Crespo, currently Chief Operating Officer of Industria de Diseño Textil, S.A.
“The natural next step”
A reason for Pablo Isla’s departure from the CEO post was not explicitly provided. Inditex said: “Carlos Crespo’s track record within the Group and his responsibilities as COO made this promotion the natural next step. Last year, Pablo Isla announced that all Inditex stores would be fully digital, integrated with the online platform and sustainable by 2020. By then, the RFID system, already completely operational at Zara, Massimo Dutti and Uterqüe, will have been deployed across the rest of the Group’s brands, coinciding with completion of the rollout of the eco-efficient store programme, which already covers 86% of the store estate.”
Isla will remain as Executive Chairman at Inditex
“The company’s shareholders will also be asked to re-elect Pablo Isla as Executive Chairman at the AGM,” Inditex said.
“At the proposal of … Pablo Isla”
Inditex said: “Inditex’s Appointments Committee, at the proposal of its Executive Chairman, Pablo Isla, has agreed to submit for approval to the Board of Directors the appointment of Carlos Crespo, currently Chief Operating Officer (COO), as the Group’s Chief Executive Officer (CEO). The appointment will take effect following approval by the Board of Directors, once appointed Director by the Annual General Meeting (AGM), to be scheduled in July.”
Share price decline
The announcement follows a decline in Industria de Diseño Textil, S.A.’s share price of 30 percent since May 2017.
In the position of CEO since 2005
Pablo Isla Álvarez de Tejera has been the Chief Executive Officer of Industria de Diseno Textil SA since June 09, 2005 and has been its Chairman since July 19, 2011.
He has been the Deputy Chairman and CEO since 2005.
He is a graduate in Law from the Complutense University of Madrid (1987) and became Spanish State Attorney (Abogado del Estado) in the 1988 year, ranking #1.
From 1992 to 1996 he was Group General Counsel of Banco Popular.
He went on to be appointed General Director of State Assests at the Ministry of Economy and Finances.
From July 2000 to 2005 he was Chairman of Altadis group.
He currently is a member of the Board of Directors of Nestlé.
He was re-elected to the Board of Directors of Inditex by the AGM held on July 13, 2010 and July 14, 2015.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
exechange reached out to Inditex and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 21.2019 ($).