Thomas Rabe under pressure: Adidas shareholders demand clear perspectives!

Thomas Rabe under pressure: Adidas shareholders demand clear perspectives!

Thomas Rabe, 59, chaired Adidas' general meeting today and was present in a black training jacket. Rabe has been a member of the Supervisory Board since 2019 and has held the position of Chairman since 2020. However, his position as chairman of the supervisory board is under pressure. Doubts from investors about his ability to lead both Bertelsmann and RTL as well as Adidas are rife South German newspaper quite common.

Before the general meeting, four major fund companies - Allianz Global Investors, Union Investment, DWS and Deka Investment - expressed their intention to vote against the extension of Rabe's mandate. Points of criticism include the lack of a successor candidate and the measly proportion of women on the supervisory board, which is only 4 out of 16 members. In the end, however, Rabe received 64.4 percent approval for continuing his mandate, which is interpreted as a weak result.

Challenges and strategies

Meanwhile, CEO Bjørn Gulden, who moved from Puma to Adidas at the beginning of 2023, describes the company's current challenges. These are characterized by global political uncertainties and difficult customs policy. Despite the difficulties, Gulden sees positive developments and has announced that Adidas is aiming to return to the sports sector. At the same time, the company plans to regain market share in Europe, while Nike is showing weaknesses.

Gulden presented a new strategy aimed at strengthening the independence of regional markets. Adidas expects sales of 23.7 billion euros and an operating profit of 1.34 billion euros for 2024, with an increase to 1.8 billion euros in 2025. These ambitious goals should be achieved under the given market conditions.

Changes in the supervisory board

Another important aspect of the general meeting was the election of Christian Klein, CEO of SAP, to the supervisory board. Due to the Corona crisis, the members of the Supervisory Board have foregone 30 percent of their compensation for the current financial year. The savings are donated to the SOS Children's Villages, among others. This measure comes after the significant losses suffered by Adidas during the pandemic. In the second quarter, a loss of 306 million euros was recorded, while the same period last year ended with a profit of 462 million euros.

During the crisis, Adidas was dependent on aid loans of up to three billion euros, supported by the KfW Group. In April 2020, 70 percent of Adidas stores worldwide were closed. So Rabe and Gulden are faced with the task of navigating the company through this turbulent phase while ensuring future success, while insiders expect that Rabe could potentially present Oliver Mintzlaff as his successor in 2026.

In summary, Adidas' general meeting shows that, despite existing challenges and criticism, there is a certain hope for positive developments and a strategic realignment. The next steps will be crucial for the future of the company.