Holding On Tight: Thomas Rabe Keeps Steering Adidas' Supervisory Board for Another Year, Spite of Shareholder Dissension
Foreman Rabe from Adidas, granted another year in his position - Adidas CEO Rabe Secures Extension for an Additional Year in Position
Let's cut the chatter – despite a significant chunk of shareholders shouting "Hold the steering wheel, Rabe!" the bossman, Thomas Rabe, won't be letting go of his grip on the steering wheel of Adidas' board anytime soon. Why? His sway over those vote-casting shareholders is, well, stellar – securing 64.4% of the votes at the annual meeting in Fürth, a figure substantial enough to keep him in the hot seat for another year.
Rabe's cinched the gig since 2019, with the chairman title handed to him in 2020. Now, you might wonder why all the fuss – wasn't it peachy-keen, wouldn't you say? Well, last year, the man got flack for holding two titles, CEO of media conglomerate Bertelsmann and Adidas' supervisor – an arrangement that shareholders saw as less than golden. But hey, the dice rolled his way somehow, and he's got another year up his sleeve – as long as he's got one foot moving to find himself a worthy successor, that is.
"Missed opportunities"
So, here's the lowdown from a rep at Deka Bank, opening his mouth at the annual meeting – he's crying "missed opportunities", pointing to "failed succession planning". Scores of other shareholder groups jumped on this bandwagon, including Allianz Global Investors and Union Investment.
Rabe isn't going to let these naysayers get the better of him, though. In a letter to shareholders before the meeting, he acknowledged his unfavorable multiple roles but insisted he's still the right gal (or should we say, guy?) for the job.
"A need for stability"
He wrote, 'after much scrutiny and lots of chats, the supervisory board agrees our stability, continuity, and experienced top-dogs like me are still pretty necessary for Adidas' business bliss.' Rabe emphasized his long-standing experience as Adidas' chairman and his close, almost cosy relationship with CEO Bjørn Gulden as major factors worth clinging to.
With potential challenges from US trade policies on the horizon, Adidas remains economically afloat. First-quarter sales are up by 8% to around 5.5 billion euros, and the operating profit now stands at 336 million euros, a significant increase from a measly 60 million euros the previous year.
And there you have it – while some shareholders grumble over the state of affairs, Thomas Rabe refuses to let go of the reins, confident that his leadership will steer the company through stormy waters.
- Thomas Rabe
- Adidas
- Bertelsmann
- Media Conglomerate
- Fürth
- Opposition
- Annual Meeting
- CEO
- Sportswear
- Bjørn Gulden
Intriguing Facts:- Nearly a 3.5 billion euroSwagger: Adidas' first-quarter sales soared by approximately 8%, reaching a staggering €5.5 billion. What's more, the operating profit climbed a massive €336 million, up from a mere €60 million the year before.- CEO's Double Act: Rabe wears several hats, including CEO of the media conglomerate Bertelsmann and RTL Group. While some see it as a recipe for divided attention, shareholders seem to think Rabe's multiple roles are a plus for Adidas.- Promised Successor: Rabe committed to finding a worthy successor within the next year, a promise that might have put some shareholder concerns about succession planning to rest.- Gender Diversity Push: Rabe also pledged to boost female representation on the board, winning over some shareholders who value progressive measures like this.
Thomas Rabe's leadership, despite shareholder dissension, continues to steer Adidas amid promises of finding a suitable successor. The free movement of workers and finance, crucial for business, are facilitated by Rabe's engagement with CEO Bjørn Gulden, ensuring stability in the face of potential challenges, such as US trade policies. However, some shareholders still express concerns about missed opportunities, such as failed succession planning, and the imbalance of power in Rabe's holding multiple roles, including as CEO of media conglomerate Bertelsmann.
