Inditex founder to give large chunk of stock to successor

Inditex founder Amancio Ortega is preparing a welcome present for Pablo Isla when he takes over the reins of the world's largest fashion retailer, whose best-known brand name is Zara. Ortega, named by Forbes as the richest man in Spain, plans to give Isla control of 221,254 shares of Inditex treasury stock worth about 13.7 million euroswhen he takes over as chairman next month, according to sources.

"It is a block of shares remaining from the initial public offering to be given [to Isla] due to the important position he will assume," said one company source.

There are no pre-conditions attached to this incentive but stockholders will have to approve the "gift" at their upcoming board meeting on July 19, when Ortega will propose his offering, the source added.

In January, the 74-year-old multi-billionaire announced in a letter to the National Securities Commission (CNMV) that he would hand over the reins of the Galicia-based Inditex to his second-in-command, Isla, who serves as the company's deputy chairman and CEO.

Inditex on Wednesday reported a 10-percent increase in profit for the first quarter on higher sales. Net income for the first quarter increased to 332 million euros from 301 million euros from the same period last year.