The Annual General Meeting (AGM) at Adidas Group on May 15 has the potential for intrigue and backroom dealings this year as a few investor groups have signaled a willingness to vote against Adidas’ Supervisory Board Chair Thomas Rabe in his reappointment effort. Some Adidas shareholders have cited a lack of a promised succession plan for the chair position of the Supervisory Board, while others point to the chair’s busy schedule and heavy responsibilities on Rabe’s shoulders.
Investment firm Allianz Global Investors (Allianz GI), which reportedly has a 1 percent stake in Adidas AG, said it would vote against Rabe’s re-election, citing concerns of “over-boarding.” Allianz GI is not among Adidas’ Top 10 major shareholders.
The Financial Times (FT) reported that four asset managers intend to vote against Rabe’s re-election, also due to concerns regarding his multiple roles and mandates, and the company’s failure to set a succession plan, the FT reported, citing the asset managers.
German investment firm Deka also said it would vote against Rabe’s re-election, noting it agreed to his re-election a year ago on the condition that the company would use this year for succession planning. Deka holds a 0.64 percent stake in Adidas, according to LSEG Refinitiv data and reporting from MarketScreener.
“One year is a period in which we can allow exceptions. We will no longer agree to another extension,” a Deka spokesperson reportedly told MarketScreener.
WS, the asset management arm of Deutsche Bank, also said it will oppose Rabe’s re-election because of a “repeated breach of expectations,” according to FT reporting. They will reportedly join Deka, Allianz GI and Union Investment in opposing Rabe’s re-election.
On the other side of the vote, Norwegian public investor Norges Bank Investment Management, which reportedly has a 4.7 percent stake in Adidas, said it would support Rabe’s re-election.
In a letter to shareholders, Rabe said that his re-election, supported by the Nomination Committee, Supervisory Board and Adidas CEO Bjorn Gulden, was needed to ensure a sustainable turnaround under plans made in 2024 and to give time for an orderly handover of the role.
“One further year will give us the additional time required to ensure a smooth handover — in the interest of short-term continuity and for the benefit of the company’s long-term success,” Rabe said.
In addition to assuming a role on the Adidas AG Supervisory Board in 2019 and ascending to the Board chair role in 2020, Rabe has served as CEO and chairman of the Executive Board of Bertelsmann since 2012, CEO of RTL Group since 2019, and chairman of the Management Board of RTL Deutschland in 2022.
A majority of Adidas shareholders backed the re-election of Rabe at the company’s AGM in 2024, securing his role for a fifth year, with the assurance that they would appoint a successor in 2025.
Allianz GI voted to re-elect Rabe last year on the grounds that Adidas had a transition plan in place, even though it claimed that this was “too many commitments in addition to his role at Adidas.”
Proxy advisory firm Institutional Shareholder Services (ISS) recommended in April 2024 that investors vote against Rabe’s reappointment due to what it argued was an “excessive” number of roles at other companies, according to reports from Reuters at that time.
“The incoming chair should possess strong leadership skills, industry experience, unquestionable independence, and enough time to lead the board, especially in times of crisis,” commented Allianz GI’s Global Head of Sustainable and Impact Investing Matt Christensen, according to multiple press reports.
In addition to his other board and CEO roles, Rabe holds a diploma and a Doctorate in Economics from the University of Cologne, Germany. He started his career in 1989 at the European Commission in Brussels.
Images courtesy Adidas and RTL Group
