El Corte Ingles chairman Dimas Gimeno survives shareholder revolt

The current chairman of Spanish department store chain Dimas Gimeno is to remain in his role after dodging a major shareholder revolt on Wednesday.

Dimas Gimeno, chairman of El Corte Inglés - Europa Press

According to Spanish newspaper El Confidencial, the revolt was led by heiresses Marta and Cristina Alvarez, the daughters of former company chairman Isidoro Alvarez, who tried to force Gimeno’s departure by proposing a censure motion against their cousin at the company’s annual general meeting this week.

The attempt failed as both the representative of the Qatari investor Hammad bin Jazzim bin Jaber al Thani, and independent director Manuel Pizarro voted against the motion. Other board members including Florencio Lasagna y Carlos Martinez Echevarria also declined, despite sources reporting the were initially on board with the dismissal.

The directors’ change of heart could be due to a new agreement put forward to manage the departure of Gimeno in the medium term, thus avoiding a series of lawsuits for alleged irregularities in the company’s security, IT and travel divisions.

The board of directors had been called to discuss a new strategic plan for the company and its IPO plans, however the revolt and the company’s internal crisis dominated the meeting on Wednesday.

An extraordinary general meeting will be held between 5-12 June.

Translated by Barbara Santamaria

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