Adidas' Supervisory Board: Thomas Rabe Secures Another Year, Facing Pushback from Shareholders
Adidas' Floor Supervisor Rabe Granted One More Year in Position - Adidas CEO, Rabe, given extension of tenure for an additional year
In the face of shareholder disagreement, Thomas Rabe, the CEO of media giants RTL and Bertelsmann, has successfully retained his position as the head of Adidas' supervisory board for an additional year. This decision was made following the annual meeting in Fürth, where Rabe obtained 64.4% of the votes - a majority that's sufficient to keep him in the role.
Rabe joined the supervisory board back in 2019, assuming the chair position in 2020. Previously, Rabe's dual roles as CEO of Bertelsmann and Adidas board member raised questions among investors. Nevertheless, this year, Rabe was granted a renewed term - under the agreement that he would intensify the search for a successor.
"Missed Opportunities and Failed Succession Planning"Representatives from Deka Bank criticized the missed opportunity for succession planning during the annual meeting. Similar concerns were raised by other shareholder groups, such as Allianz Global Investors and Union Investment. These voices argued that the prolonged tenure without a clear succession plan is concerning.
Despite these criticisms, Rabe remains confident in his abilities. Prior to the meeting, he wrote a letter to shareholders, acknowledging the multi-tasking debate but emphasizing the need for stability and continuity within Adidas' leadership. He asserted that Rabe's vast experience on the Adidas board, coupled with his close collaboration with Adidas CEO Bjørn Gulden, remains imperative for the company's ongoing success and future growth.
Adidas Remains Financially StableNotwithstanding doubters, Adidas' performance this year has remained admirable. Revenue increased by 8% in the first quarter, bringing in close to €5.5 billion. Operaing profit climbed significantly, reaching €336 million, up from €60 million in the previous year.
- Thomas Rabe
- Bertelsmann
- RTL
- Adidas
- Fürth
- Shareholder Opposition
- Annual Meeting
- CEO
- Bjørn Gulden
- Succession Planning
Thomas Rabe, the CEO of media giants RTL and Bertelsmann, continues to navigate challenges from shareholders despite securing another year as the head of Adidas' supervisory board. Investors, such as Deka Bank, Allianz Global Investors, and Union Investment, have voiced concerns about the lack of a clear succession plan due to Rabe's prolonged tenure.
Despite these criticisms, Bjørn Gulden, the CEO of Adidas, emphasizes the importance of Rabe's vast experience on the Adidas board and his close collaboration with Gulden, asserting that this is crucial for the company's ongoing success and future growth. The financial stability of Adidas, with a revenue increase of 8% in the first quarter and operating profit nearly doubling compared to the previous year, underscores the confidence in Rabe's leadership.
