Adidas Announces New CEO, Stocks Surge
Adidas announced this week that current Henkel (maker of laundry powders and Dial Soap) Chief Executive Karsten Rorsted will take over as CEO in October, replacing Herbert Hainer, who has faced widespread investor discontent.
According to the Wall Street Journal, the company's stock soared 11% since the news was announced, "with investors confident Mr. Rorsted can restore growth at the company following a tenure at Henkel that is considered a clear success."
The 51-year-old will become a full board member in August before fully taking over as a CEO on October 1.
"We welcome the appointment of Rorsted as successor to Hainer and hope that the long dry spell for Adidas's profitability will come to an end," said Ingo Speich, fund manager at Union Investment, which owns roughly 1.2% of Adidas's stock.