El Corte Inglés eliminates its Executive Committee, strengthening CEO authority
What: El Corte Inglés streamlines governance structure by abolishing executive committee ahead of CEO's strategic transformation plan.
Why it is important: The timing of this organisational change, coinciding with Bottazzini's upcoming strategic plan and McKinsey partnership, signals El Corte Inglés' commitment to rapid transformation in an evolving retail landscape.
El Corte Inglés is undertaking a significant governance restructuring by abolishing its executive committee, marking a crucial step in its organisational transformation. The change strengthens CEO Gastón Bottazzini's position as he prepares to unveil a comprehensive strategic plan for 2025-2030. This restructuring includes replacing the executive committee with a non-executive monitoring committee, chaired by Marta Álvarez, focusing on strategic oversight rather than operational management. The timing is particularly significant as the company shows strong financial performance, with an 11% increase in net profit to EUR 203 million and global revenue of EUR 8.041 billion in the first half of 2024-2025. The governance changes align with broader transformation initiatives, including a EUR 428 million investment in store renovations and significant digital expansion. Under Bottazzini's leadership since July 2024, the company is positioning itself for more agile decision-making and faster implementation of strategic initiatives.
IADS Notes: El Corte Inglés' governance restructuring represents the latest phase in its comprehensive transformation journey. In March 2024, the company began implementing significant changes with Bottazzini's appointment as CEO, followed by a strategic partnership with McKinsey in October 2024 to develop a new transformation plan. The abolition of the executive committee in April 2025 builds on earlier organisational changes, including the October 2024 departure of retail director José María Folache and the creation of a new Transformation Office. These developments align with the company's broader strategy of modernising operations while maintaining its core retail strengths, as evidenced by its February 2025 investment in store renovations and digital innovation. The streamlined governance structure supports the company's vision of becoming a more agile, technology-driven retailer while preserving its traditional market leadership.
