Adidas’ investors Allianz Global oppose Chairman's re-election

Adidas is under renewed pressure over its board after Allianz Global Investors (AllianzGI) confirmed it will vote against the re-election of its Chairman, Thomas Rabe, at the Annual General Meeting on 15 May.

The asset manager stated its intention to oppose Rabe’s re-election, citing unresolved concerns around "overboarding" and a lack of visible progress on succession planning.

Rabe is currently CEO of both RTL Group, a listed media company, and Bertelsmann Management SE, in addition to his Chairmanship at Adidas - commitments AllianzGI believes are excessive for a role that demands full focus.

AllianzGI previously supported Rabe’s re-election back in 2024 despite these concerns. At the time, Adidas assured investors it was extending his term by just one year to allow time to find a successor.

However, the firm said it has seen "neither a successor to the chair nor, in our view, a convincing succession plan since then". Although the firm is not among Adidas’ top 10 shareholders, its stance may influence broader investor sentiment.

"We believe that the selection of a chair should be well prepared and communicated clearly to investors," AllianzGI said, adding that any incoming candidate must bring "senior management expertise, industry and international experience, outstanding leadership skills" and a level of independence that excludes concurrent executive roles.

Matt Christensen, Global Head of Sustainable and Impact Investing at AllianzGI, commented: "Our decision to vote against the re-election of the Adidas Chair reflects the high importance we give to board quality, believing that strong governance is closely linked to better financial performance and high sustainability standards. Overboarding remains a major concern. We also want to stress the importance of proactive succession planning."

He added that the nomination committee must move quickly to define a clear competence profile and present a qualified successor, allowing time for a "seamless handover".

Rabe is seeking a sixth year as Supervisory Board Chair while Adidas is navigating a new global trade environment. Last month, for example, Adidas warned of price hikes for its trainers due to higher tariffs and said the trade policy uncertainty has "put a stop" to any earnings upgrade.

The German sportswear giant said prices will rise in the face of cost increases from US President Donald Trump’s move to raise trade tariffs on goods imported into America, with US customers expected to see higher prices for all its products.

In its most recent financial update, Adidas said pre-tax earnings more than double to €585 million (£497.3 million) in the first quarter, up from €245 million (£208.3 million) a year ago, as revenues rose by 13% on a constant currency basis to €6.15 billion (£5.23 billion).