.jpeg)
Adidas has announced that its chief executive Kasper Rorsted will stand down in 2023, three years ahead of the end of his contract.
No reason was given for the surprise departure, but a statement posted on the sportswear giant’s website said the CEO and the company’s board had “mutually agreed” that he would hand over the reins “during the course of 2023”.
Rorsted became Adidas CEO in 2016 and has overseen a turbulent period in the company’s history but there had been no indications that the company was dissatisfied with his performance. In 2020 the firm agreed to extend his contract until July 31, 2026.
Thomas Rabe, chairman of the supervisory board of adidas AG, said: “After three challenging years that were marked by the economic consequences of the COVID-19-pandemic and geo-political tensions, it is now the right time to initiate a CEO transition and pave the way for a restart. We are pleased that Kasper will ensure a smooth transition at the helm of the company during the upcoming months jointly with the Supervisory Board and Executive Board of adidas AG.”
The outgoing CEO focused on speeding through the company’s digital transformation, with Adidas claiming online sales grew fivefold during his tenure.
On his watch, Adidas also sold off its TaylorMade, Reebok, and CCM Hockey businesses as part of a strategy to focus on its core brand.
Read this: Reebok chief O’Toole says brand will flourish away from ‘big brother’ Adidas
Prior to joining Adidas, the Danish executive served in a variety of roles for technology businesses including Oracle, Compaq and Hewlett Packard. Between 2005 and 2016 he worked for German multinational chemical and consumer goods company Henkel, becoming the firm’s CEO in 2008.
He then replaced Herbert Hainer at the Adidas helm with the former CEO subsequently becoming the president of Bundesliga club Bayern Munich in 2019.
Rorsted said in the statement: “As a company, we have achieved great progress in strategic areas of our business. I am proud of our achievements as a team. The past years have been marked by several external factors that disrupted our business significantly. It required huge efforts to master these challenges. This is why enabling a restart in 2023 is the right thing to do – both for the company and me personally.
“Our business is heading in the right direction. We are growing double-digit in 85% of our business. In the months to come our focus will be to accelerate our growth as soon as all markets can operate without major disruptions. Together with the adidas team I am looking forward to realizing this growth and, jointly with the Supervisory Board, to ensuring a smooth transition at the helm of the company.”
Rabe added: “We would like to thank Kasper for his major achievements. During his tenure since 2016 he has strategically repositioned the company and fast-forwarded its digital transformation.”
He continued: “In North America, the world’s largest sporting goods market, adidas has doubled its sales. In addition, adidas has strengthened its leadership position in sustainability and increased diversity, equity and inclusion throughout the company. One example is the share of women in leadership positions that increased significantly during his tenure. Following the successful divestiture of TaylorMade, CCM Hockey and Reebok the company is now able to focus its efforts on its core brand adidas.”
