Investment firm Allianz Global Investors is set to vote against the re-election of chairman Thomas Rabe at Adidas’ annual general meeting (AGM) later this week.
Allianz said that it would vote against the chair’s re-election to the sportswear giant’s supervisory board at its AGM on 15 May, referencing “overboarding” concerns.
Although proxy advisory firm Institutional Shareholder Services recommended that they vote against his re-election because of his positions at other businesses, the majority of the retailer’s investors supported Rabe’s re-appointment last year.
Rabe is seeking his sixth year as Adidas chair, and also sits as CEO of media companies RTL and Bertelsmann.
Although Allianz GI argued that this was “too many commitments in addition to his role at Adidas,” it voted to re-elect the Rabe last year on the basis that Adidas had a transition plan in place.
Despite this, Allianz GI said the sportswear giant “has neither presented a successor to the chair nor, in our view, a convincing succession plan since then”.
The fund manager urged Adidas to present investors with a “succession plan and ultimately, a candidate, as soon as possible, allowing sufficient time for induction to ensure seamless handover”.
It added: “AllianzGI believes that the selection of a chair should be well prepared and communicated clearly to investors.
“This includes a stringent competence profile of the candidate to be selected including, for example, senior management expertise, industry and international experience as well as outstanding leadership skills.
“In times of geopolitical disruption, the incoming chair should have sufficient time to fulfil his duties and not serve as an executive at the same time, and be truly independent.”
The fund manager does not comprise one of Adidas’ top 10 major shareholders, meaning the chair’s status will likely be determined by its other top investors who are yet to comment.
It comes after Adidas pulled in
strong profits in its most recent results last month, but warned that rising tariffs on imports into the US could push up costs and prices in the months ahead.
Revenues rose by nearly €700m to €6.15bn in the first quarter, which represented a 13% increase on a currency-neutral basis. Sales across the Adidas brand grew 17% during the period, with double-digit gains across all markets and channels.
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