Key insights
- On Holding (ONON) shares fell 11% after announcing CEO Martin Hoffmann will step down, replaced by co-founders David Allemann and Caspar Coppetti as co-CEOs. The market reacted negatively to the executive turnover, despite the company's claim that this change will drive the next phase of global expansion. The new CFO will be Frank Sluis. The stock was already down 15% YTD and 18% over the last 12 months.
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Swiss sneaker maker On Holding (ONON) announced its longtime chief executive would be stepping down. Investors didn't care for the news.
Shares of On Holding were down 11% recently after the Zurich-based company said that "following a successful 13-year tenure at On, Martin Hoffmann has chosen to step down as CEO."
On added that "to drive the next phase of global expansion," its co-founders, David Allemann and Caspar Coppetti, will serve as co-CEOs.
On Holding is moving back to founder-led leadership as it pushes global expansion. Investors appear to be wary of executive turnover, especially after recent stock declines, according to the market reaction—even though the move may position the company for long-term growth.
Hoffmann, who has served as CEO for five years and also held the role of chief financial officer for the past 13 years, will step down from his roles on May 1. Hoffmann became On Holding's sole CEO on July 1, 2025, after Co-CEO Marc Maurer left the company following 12 years at the helm.
Frank Sluis will take over as CFO on May 1, and Hoffmann will remain an advisor through March 2027, said On, which saw annual net sales surpass 3 billion Swiss francs ($3.8 billion) in 2025.
"The timing to move on feels right," Hoffmann said. "Over the past 12 months we have been highly engaged in defining the next growth horizon and leadership structure for On. This next chapter will be driven by the talented and experienced leaders who I’ve worked closely with over many years."
Shares of On Holding, which is partly owned by Swiss tennis legend Roger Federer, entered Wednesday down 15% this year and 18% over the last 12 months.