- Thomas Rabe is also chief executive officer of both RTL and Bertselmann
Allianz Global Investors will vote against the re-election of Thomas Rabe at Adidas’ upcoming AGM, reigniting a row over the chairman’s other work commitments.
The €571billion fund manager said on Monday it would vote against Rabe’s re-election to Adidas’ supervisory board at the 15 May meeting, citing ‘overboarding’ concerns.
A majority of Adidas investors backed Rabe’s re-election last year despite prominent proxy advisory firm Institutional Shareholder Services recommending they vote against the reappointment due to his roles at other companies.
Rabe, who is looking for his sixth year as chair, is also chief executive of listed media group RTL as well as German conglomerate Bertelsmann.
Allianz GI says this is ‘too many commitments in addition to his role at Adidas’, but had voted to reappoint Rabe last year anyway on the basis that the group had a transition plan in place.
However, the fund manager said, Adidas ‘has neither presented a successor to the chair nor, in our view, a convincing succession plan since then’.
Thomas Rabe is also chief executive officer of both RTL and Bertselmann
The group called on Adidas to present to investors a ‘succession plan and ultimately, a candidate, as soon as possible, allowing sufficient time for induction to ensure seamless handover’.
It said: ‘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.’
Allianz GI is not among Adidas’ top 10 major shareholders, so Rabe’s position likely rests with other top investors yet to comment.
Global head of sustainable and impact investing Matt Christensen added: ‘The incoming chair should possess strong leadership skills, industry experience, unquestionable independence, and enough time to lead the board, especially in times of crisis.’
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