Falabella Ex-President Ostalé’s $2.3M Pay & New Leadership Era

The Chilean retail giant Falabella is navigating a leadership transition as Enrique Ostalé prepares to step down as president on March 17th, coinciding with the release of figures detailing his substantial 2025 compensation. According to the company’s annual report, Ostalé received a total gross remuneration of 2,118 million Chilean pesos (approximately US$2.3 million) for the fiscal year, a record amount that has drawn significant attention within the Chilean business sector. This comes as Falabella aims to close several major asset sales this year, according to The Business of Fashion.

The significant increase in Ostalé’s pay is directly linked to Falabella’s strong financial performance throughout 2025. The conglomerate reported substantial profits and a considerable rise in its stock value, triggering higher variable compensation components. This payout positions Ostalé as one of the highest-paid executives in Chile, significantly exceeding local market averages. The timing of this disclosure also coincides with a broader restructuring of Falabella’s board of directors, as Bloomberg Línea reports, with Gaston Bottazzini also recently resigning as CEO.

Breakdown of Ostalé’s Remuneration

Ostalé’s total remuneration of 2,118 million pesos is comprised of two primary components, as outlined in the company’s remuneration policy. A fixed fee accounted for 289 million pesos (approximately US$315,500) for the 2025 fiscal year. Although, the majority of his earnings came from variable pay, totaling 1,829 million pesos (US$2.00 million). This substantial variable payment was fueled by the distributable net profits reported by Falabella during the year. An additional 47 million pesos (US$51,300) was awarded for his role as a director of Plaza S.A., further solidifying his position as the highest-paid director on Falabella’s nine-member board, which collectively received 4,040 million pesos (US$4.4 million).

The scale of Ostalé’s 2025 compensation represents a dramatic increase compared to previous years. In 2024, he received 277 million pesos (US$302,400), consisting solely of fixed fees. His first year in the role, 2023, saw a total remuneration of 187 million pesos (US$204,150). This exponential growth underscores the direct correlation between the company’s performance and executive compensation.

Profit and Stock Performance Drive Payout

Falabella’s reported profits of US$1.485 billion in 2025 were a key driver of Ostalé’s substantial bonus. However, it’s important to note that this figure included a revaluation of properties to market value. Excluding this accounting effect, the company’s net profit would have been closer to US$897 million. The performance of Falabella’s stock, which saw an 83% return during the year, also played a crucial role in the variable pay calculation. The company’s remuneration policy stipulates a monthly fee of 615 UF (Unidad de Fomento, a Chilean inflation-indexed unit of account) for the president, along with a variable component equivalent to 0.2% of profits, and additional compensation linked to sustained increases in the company’s share price.

Ostalé’s earnings surpassed those of other Chilean business leaders. For instance, Pablo Granifo, president of Banco de Chile, received approximately 1,172 million pesos (US$1.2 million), compared to Ostalé’s 2,118 million pesos (US$2.3 million). Both figures represent gross remuneration and are subject to the highest tax rates.

A Changing of the Guard at Falabella

Enrique Ostalé’s departure marks the end of an era for Falabella, as he is not seeking re-election to the board on March 17th. He was the first president external to the controlling families in the company’s history, taking the helm in April 2023 during a period of internal tension. His prior experience as a senior executive at Walmart brought a fresh perspective to the organization. The board renewal process has seen a slate of candidates nominated to fill the nine available positions, including current directors Carlo Solari, Cecilia Karlezi, Juan Carlos Cortés, Paola Cúneo, and Alfredo Moreno. There are also proposed changes, such as replacing José Luis del Río with his brother, Juan Pablo del Río.

The Müller and Fürst families, representing a latest group of shareholders, have nominated Tomás Müller Benoit for a board seat. AFPs (Chilean pension funds) have put forward Carlina Schmidt, a former minister and commercial engineer. There is a consensus among the various controlling branches to support Fernando De Peña as the next president. De Peña served as general manager of Mallplaza for 35 years and is considered the leading candidate to succeed Ostalé.

The transition at Falabella occurs as the company continues to navigate a competitive retail landscape and pursue strategic asset sales. The incoming board will be tasked with maintaining the company’s positive momentum and adapting to evolving market conditions. The outcome of the March 17th vote will be a key indicator of the direction Falabella will seize in the coming years.