Adidas Governance Analysis

Sofia Cedrone

March 29, 2016

Professor Drobile

Corporate Finance

Adidas Governance Analysis

        Adidas is a globally operating public company that comes out of Herzogenaurach, Germany. It follows the German stock corporation law. A dual board system, that assigns management to the company to Executive Board and supervision of Executive Board to the Supervisory Board, is the fundamentals of the principals of the German Stock corporation law. These boards are strictly separated both in terms of members and of competencies.

The CEO of Adidas is Herbert Hainer, who is at the age of 61. Hainer is also on the Supervisory Board chairman of the FC Bayern Munich AG. Hainer has been the CEO of Adidas since 2001. Before becoming CEO he started from the very bottom like everyone else. He joined the Board, which consist of 5 members in 1997 then quickly made his way up to the top. Hainer first started as a Sales Director, then moved to Senior Vice President in Sales Logistics to then the CEO of the company. Last year Herbert Hainer made 5.7 million dollars being the CEO of Adidas.

        The Board of Directors for Adidas holds just 5 members. The CEO, Herbert Hainer, Roland Auschel, Glenn Bennett, Eric Liedtice, and Robin J. Stalker. Head of Global sales is in charge by Auschel who has been head of that department since 2013. Global Operations is operated by Bennett since 2003. Since 2014 Liedtice has been head of Global Brands. Stalker is the Chief of Financial Office since 2001.

(DIFFRENRENT SECTION) Based on Adidas database they currently have a little over 70,000 shareholders. In February of this year 100% of Adidas shares have been outstanding. 87% of the shares are held by Institutional investors, being the largest investment group. Just 8% of shares are from private investors. Group Executive and Supervisory Boards hold less than 1% of the shares. Adidas holds just 4% of the shares in treasury shares. When it comes to the geographical distribution North America is accountable for 33% of shareholdings. The UK holds the second highest of 26%. Just 9% of the shares are held by Germany, Switzerland and France are accountable for 6% and 5%. Around the world shareholders were identified of having 21% of the holdings.