Bertelsmann media group's chief executive officer, Thomas Rabe, can continue as chairman of the supervisory board of German sportswear manufacturer Adidas for another year, despite strong opposition from shareholders. At the annual general meeting in Fürth, Rabe received only 64.4 percent of the votes from Adidas shareholders. However, the result is sufficient for another year in office.
Rabe has been a member of the supervisory board since 2019 and was elected its chairman in 2020. Rabe had already faced criticism last year because shareholders viewed his dual role as Bertelsmann chief and Adidas supervisor critically. However, the 59-year-old received a mandate for another year, coupled with a request to intensify the search for a successor.
‘Failed succession planning’
A representative from Deka-Bank said at the annual general meeting: “We approved the re-election of Mr Rabe one year ago, under the provision that the supervisory board would use the year for succession planning.” He now spoke of a “missed opportunity” and of a "failed succession planning". Other shareholder groups, including Allianz Global Investors and Union Investment, supported the argument.
Rabe himself is convinced that he is still the right person for the job. In a letter to the shareholders, he had already admitted in advance that the accumulation of offices could be perceived as unfavourable.
He wrote: “After thorough examination and detailed discussions in the nomination committee, in the overall supervisory board and with our chief executive officer, Bjørn Gulden, we have now come to the conclusion that stability, continuity and experience at the top of the supervisory board continue to be of critical importance for our business success”.
Against this background, the supervisory board is convinced that his “many years of experience as chairman of the supervisory board of Adidas and other listed companies” as well as the “very close and good cooperation” with group chief Gulden in this “phase of great opportunities for Adidas is very valuable and necessary in order to continue to guarantee the sustainable turnaround”, the letter continues.
Despite the challenges posed by customs policy in the US, Adidas is in a solid economic position. In the first quarter, sales rose by 8 percent to almost 5.5 billion euros. Operating profit climbed to 336 million euros, after 60 million in the same period last year.
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