Inditex approves a $250 million incentive plan for its executives
The second meeting of Inditex shareholders, chaired by Marta Ortega, took place without any shock. The company’s capital approved on Tuesday the incentive plan of 250 million for its directors and up to 750 employees, in addition to the distribution of a dividend of 1.20 euros per share charged to the results of the fiscal year 2022. The number of members The board of directors was also appointed at ten o’clock after the departure of the former head of the Bank Banco Popular Emilio Saracho, founder of the textile giant Amancio Ortega, has also been endorsed as property manager for another four years.
Marta Ortega opened the shareholder meeting claiming the work of the group’s employees, “The results achieved in 2022 and the beginning of 2023 are the result of the great work done by the teams; their effort, the love they put into their work, their courage and commitment made it possible,” said the daughter of the founder of the textile giant. .
Ortega, who took over the presidency in April last year, wanted to thank him in this way for welcoming him into a very difficult year for the group in which he had to face an inflationary situation and the company’s exit from Russia, one of its most favorable markets. “Nothing guarantees the future and we have to keep that in mind. It is the force that explains the trajectory of our brands”, he stressed before giving way to the intervention of the CEO of the group, Oscar García Maceras.
During his speech, García Maceiras presented an ambitious plan with which the parent company of brands such as Zara or Massimo Dutti intends to advance in the short and long term in terms of sustainability. As a very important point, Inditex has committed itself to ensuring that 100% of the textile fibers used in the production of its products will have a lower environmental impact in 2030. As explained by García Maceiras, 25% of the raw materials used will be newly created (before the shortage of stocks on the market); 40% recycled fibers; 25% is organic or renewable fibers and another 10% is matched with other preferred fibers.
As part of this plan, the group also commits to reducing carbon emissions by 50% by 2030 (the current commitment also includes eliminating 100% of emissions by 2040), and expanding its used clothing sales platform, Zara Pre Owned, already in the UK, into Major markets such as Spain, France and Germany throughout this year.
García Maceiras took advantage of his intervention to recall the results obtained by the group last year, also at the beginning of the cycle, as Inditex continues its historical trajectory of sales and profits. Last year, revenues amounted to 32.569 million euros and profits 4,130 million (27% more than in 2021), while in the first quarter of the financial year they exceeded 7,600 million and a net profit of 1,168 million euros (54% more than in 2022). ).
All points approved today
Shareholders gave their approval to all points of the day proposed by the Board of Directors. One of the most significant plans, which is the incentive plan for its managers, including executives and other employees of the group with a maximum of 750 beneficiaries at a value of 250 million.
The plan envisages a combination of a multi-year cash grant and stock delivery (up to a maximum of 7,500,000 common shares equivalent to 0.24% of the share capital) and will last four years. It will be organized in two sessions. The first runs from February 1, 2023 to January 31, 2026 and the second runs from February 1, 2024 to January 31, 2027. CEO Oscar García Maceras may aspire to a maximum of 183,750 shares.
