On Tuesday, the athletic giant said president and COO Patrik Frisk would take over for Plank in the day-to-day management of the business come January.
On the heels of the news, the company’s stock jumped more than 6%, netting the outgoing chief, who owns 33.8 million shares, or 15%, in common stock, roughly $89 million. Overall, Under Armour shares are up about 17% since the beginning of the year, but shares have dramatically fluctuated over time, meaning Plank’s net worth rises and falls with the stock. On Wednesday, for instance, the stock declined about 2%.
Frisk, who will report to Plank, takes over at a time when the company is grappling with concerns about its growth strategy and culture.
“As my partner during the most transformative chapter in our history, [Patrik] has been exceptional in his ability to translate our brand’s vision into world-class execution by focusing on our long-term strategy and reengineering our ecosystem through a strategic, operational and cultural transformation,” Plank said in a statement on Tuesday.
The Under Armour founder launched the business when he was still a college student in 1996, leading it to its breakthrough in the footwear space a decade later and raking in $1 billion in annual sales in under 15 years.
“It takes a long time to be great in this industry, and anyone can do a release and say, ‘Here’s a shoe, and here’s a thousand units,’ ” Plank said about the footwear business in an exclusive interview with FN in January. “But when you’re doing it at scale and making 35 million-plus pairs of shoes a year, that’s doing it great. What we’ve [also] been able to do is focus ourselves to stop doing so much and get more narrow and a lot deeper.”
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