Opposition forming against Rabe's candidacy as Adidas's chairman of the supervisory board
Let's give it a kick:
Thomas Rabe, the CEO of Bertelsmann, is bracing for some rough weather as he prepares for his upcoming re-election to Adidas' Supervisory Board. Powerful shareholder advisor ISS, along with Union Investment and Allianz Global Investors (AllianzGI), have made it clear they won't be voting for Rabe in this year's annual general meeting in Fürth, scheduled for Thursday.
The accusations against Rabe, who has been chairing the nomination committee since 2020, include the slow pace in finding a successor and the lack of gender diversity within the supervisory board. Despite his original intention to depart from Adidas by the end of 2026, Rabe has decided to run for another year, requiring only a simple majority for confirmation.
The hunt for a successor has been prolonged
Adidas had already requested an extension of Rabe's tenure through 2024 to provide ample time to find a new Supervisory Board chairman. However, since then, the company has yet to present a suitable candidate or propose a compelling succession plan, as per AllianzGI. Rothacker, a corporate governance expert at Union Investment, shared his concerns, stating, "Once more, we're voting against Rabe's re-election due to the overlap of roles and a weak succession plan."
In a letter to shareholders, Rabe argued that a smooth transition necessitates thorough preparations and open communication. He requested his re-election, stating, "We didn't make this decision lightly. But we believe it's the right move for Adidas." He argued that the extra year would allow for a seamless transition, benefiting both the short-term stability and long-term growth of the company.
Insights from Reuters:
Currently, there's no identified individual as the potential successor for Rabe as Adidas Supervisory Board Chairman. Despite shareholders' criticisms, Rabe was re-elected with 64.43% of votes. Adidas has indicated that it will appoint a successor in 2025, but no official announcements have been made regarding the candidate.
In the unfolding business landscape, the finance sector's influence extends beyond Bertelsmann, with Thomas Rabe's re-election controversy at Adidas also impacting the sports industry. The unsettled successor issue, coupled with criticisms about the lack of gender diversity and slow pace in finding a replacement, has raised concerns among shareholders.
