Allianz Global Investors preparing to oppose Adidas chair's re-election amidst revival of controversy over excessive board involvement.
Revamped Article:
Thomas Rabe's future as Adidas' chairman is in doubt again, thanks to Allianz Global Investors (Allianz GI). The fund manager has announced it will vote against Rabe's re-election at Adidas' AGM on May 15, citing concerns about his overcommitment and the absence of a transparent succession plan.
The €571 billion behemoth tossed its hat in the ring against Rabe last year, too, but ultimately agreed to reappoint him based on Adidas' assurance of a transition plan. The tune has changed now, as Allianz GI claims that Adidas has yet to present a convincing successor or a solid succession strategy, questioning whether Rabe has enough time to dedicate to Adidas given his multiple roles.
Rabe is also CEO of listed media giant RTL and German conglomerate Bertelsmann, keeping him extra busy. Allianz GI deems this overload of responsibilities unwise for someone helming Adidas, urging the sportswear empire to come clean with investors about a succession plan and a suitable candidate, ASAP.
Adidas shareholders overwhelmingly backed Rabe's re-election last year despite recommendations to the contrary from Institutional Shareholder Services (ISS). This time around, however, it remains to be seen if other top investors will follow Allianz GI's lead.
Matt Christensen, Global Head of Sustainable and Impact Investing for Allianz GI, went on record saying, "The incoming chair should possess strong leadership skills, industry experience, unquestionable independence, and enough time to lead the board, especially in times of crisis."
Behind the Scenes:
Insiders claim that shareholders prefer a chair with a history in senior management, international experience, and exceptional leadership skills [1]. Furthermore, with geopolitical disruptions looming, the incoming chair should be free from executive duties and totally independent [1].
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- The ongoing dispute about Thomas Rabe's re-election as Adidas' chairman has raised concerns about the lack of a clear succession plan and a suitable successor in the finance and business world, leading investors like Allianz Global Investors to question whether he can dedicate enough time to Adidas given his multiple roles.
- With geopolitical disruptions looming, Allianz Global Investors has expressed the preference for an incoming Adidas chair who possesses strong leadership skills, industry experience, unquestionable independence, and enough time to lead the board, especially in times of crisis.
