On Holding AG (NYSE:ONON) shares declined about 5% on Wednesday after the company revealed that Chief Executive Officer Martin Hoffmann will step down after 13 years with the Swiss sportswear company.
Starting May 1, company co-founders David Allemann and Caspar Coppetti will take on the roles of Co-CEOs while continuing to serve as Executive Co-Chairmen of the Board. The leadership change comes as On enters a new phase of expansion following annual net sales exceeding CHF 3 billion in 2025.
Hoffmann, who previously served as chief financial officer before becoming CEO five years ago, will leave the role on May 1 and remain with the company in an advisory capacity through March 2027. Frank Sluis will assume the position of CFO beginning May 1.
As part of the organizational reshuffle, Scott Maguire has been promoted to President and Chief Operating Officer, where he will oversee the entire value chain—from research and development and production to marketing and global commercial activities. Maguire previously led the scaling of On’s LightSpray technology and helped develop the Superfoam innovation used in the Cloudsurfer 3.
The company said the management changes aim to better align founder-driven strategy with operational execution as it continues expanding globally. Co-founder Olivier Bernhard will remain responsible for performance product development and athlete engagement as an Executive Member of the Board.
After Hoffmann’s departure, the company plans to propose converting his 16,250,000 Class B voting shares into 1,625,000 Class A ordinary shares at the Annual General Shareholders’ Meeting scheduled for May 28.