Adidas Governance Crisis: Can Overboarded Leadership Steer Through Turbulence?

The boardroom battles at Adidas are heating up ahead of its May 15 annual general meeting (AGM), as investors increasingly question whether Thomas Rabe’s overstretched leadership poses an existential threat to the sportswear giant. With Rabe’s multiple executive roles at Bertelsmann, RTL Group, and Adidas raising red flags about overboarding, and no successor named after years of promises, shareholders face a critical choice: tolerate a governance structure that prioritizes continuity over accountability, or demand a leadership overhaul to protect long-term value.

The stakes couldn’t be higher. While Adidas reported a 13% revenue surge to €6.15 billion in Q1 2025, its reliance on a chairman who’s already leading two other major companies—while overseeing a board with no clear succession plan—creates a ticking time bomb. Add geopolitical instability, rising U.S. tariffs, and proxy advisors’ warnings about governance failures, and the risks to shareholder value become glaring.

The Overboarding Quagmire

Rabe’s role as Chairman of Adidas’ supervisory board is but one thread in a sprawling web of responsibilities. As CEO of Bertelsmann, a media conglomerate with €18 billion in annual revenue, and CEO of RTL Group, Europe’s largest TV broadcaster, he is effectively managing three Fortune 500-scale enterprises. This trifecta of roles has drawn sharp criticism from Allianz Global Investors (AllianzGI), which has openly opposed his re-election, arguing: “The incoming chair must possess senior management expertise… and avoid concurrent executive roles.”

The data underscores the concern:

While Nike and Puma have seen modest gains, Adidas’ shares have stagnated—a stark contrast to its financial performance. Investors are pricing in governance risks, even as earnings climb.

A Succession Void and ESG Reckoning

AllianzGI’s opposition is part of a broader shift in ESG-driven investor priorities. Proxy advisors like ISS have twice recommended voting against Rabe, citing not only overboarding but also the lack of gender diversity on Adidas’ board. Glass Lewis piled on, lambasting Adidas’ “excessive severance payouts”—notably a €15 million exit for ex-CEO Kasper Rorsted in 2022—as evidence of poor governance.

The succession vacuum is particularly alarming. Despite Rabe’s 2024 pledge to name a successor by 2025, no candidate has been announced. This delay leaves Adidas in limbo as it faces rising U.S. tariffs—potentially forcing price hikes that could deter consumers. A leader distracted by dual CEO roles at Bertelsmann and RTL is ill-equipped to navigate such challenges.

The AGM Crossroads

Adidas shareholders now face a pivotal decision. Backing Rabe’s re-election risks amplifying governance concerns, potentially deterring ESG-focused investors and further widening the gap between earnings growth and stock performance. Conversely, rejecting him could force Adidas to finally prioritize accountability over inertia—a move that might unlock long-term value.

AllianzGI’s stance signals a paradigm shift: ESG-conscious investors are no longer content with short-term financial wins. They demand boards that reflect modern governance standards—diverse, focused, and prepared for leadership transitions. For Adidas, clinging to a chairman with divided loyalties is a gamble that could backfire spectacularly.

Final Call to Action

Investors holding Adidas stock should vote against Rabe’s re-election at the AGM and demand transparency on succession planning. The financials may look strong now, but overboarding and weak governance are silent killers of shareholder value. With geopolitical storms looming and competitors sharpening their strategies, Adidas needs a leader fully committed to its future—not a part-time chairman.

The writing is on the wall: governance matters. Don’t let Adidas’s boardroom chaos overshadow its potential.