Adidas hires Henkel CEO to replace Hainer as boss

Rorsted is now Chief Executive Officer of German consumer goods maker Henkel AG & Co.

At Monday’s extraordinary meeting of Adidas’ Supervisory Board in Herzogenaurach, Rorsted was appointed as ordinary member of the company’s executive board effective August 1, 2016 and as CEO of Adidas effective October 1, 2016.

Investors had hoped Adidas would appoint an external candidate, believing an outsider might be more likely to take tough decisions to boost profitability and potentially sell more non-core businesses, such as fitness brand Reebok. Yet it is not only the financial metrics that are notable: “Under Herbert Hainer, Adidas has become one of the most sustainable corporations in Europe and one of the world’s most attractive employers”. Rorsted’s record in nearly eight years in charge of Henkel provides grounds for optimism: Under his leadership, the company’s shares have tripled, while the operating profit margin has widened to record levels.

“With the appointment of Hans Van Bylen as new CEO we have named a strong successor to the CEO position at an early time – as it is common practice at Henkel”. Hainer has presided over a series of forecast cuts, hurt by the shrinking golf market and the ruble’s slump, which eroded the value of its business in Russian Federation.

In addition, on behalf of the entire Supervisory Board, Igor Landau thanked Herbert Hainer, who will leave the company on September 30, 2016, for his achievements: “Herbert Hainer has done a tremendous job for the adidas Group”.

He is now the boss of Henkel, whose brands include Persil detergent and Schwarzkopf shampoo.

Rørsted is now working as the CEO of another German company, Henkel, which produces homecare and beauty care products. Adidas said this will ensure a smooth executive transition.