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Under Armour CEO stepping down with $6.9M separation agreement

Patrik Frisk is stepping down as Under Armour’s president and CEO. (Submitted Photo)

Patrik Frisk, who took over as CEO and president of Under Armour in 2020 and led the Baltimore company as it navigated through the turbulence of a global pandemic, is leaving as its top leader.

The company announced that Frisk will step down on June 1 and that Chief Operating Officer Colin Browne will fill in until a permanent CEO and president is named.

“On behalf of the board, I want to thank Patrik for his valuable contributions to Under Armour over the past five years,” said Kevin Plank, Under Armour founder, executive chairman and brand chief. “During his tenure, we made significant strides in advancing enterprise-wide operational excellence, and Patrik’s steadfast leadership has been crucial to strengthening our foundation and positioning the company for our next growth phase.”

In a news release, the company praised Frisk, who joined Under Armour in 2017, for advancing a long-term strategic plan that reengineered its structure, systems, and go-to-market process. Frisk was only the second CEO since the company was founded in 1996. Plank, who controls the company’s voting shares, was the first.

“I am extremely proud of what we’ve accomplished as a team,” Frisk said. “Together, we have done a tremendous amount of work to strengthen this iconic brand while significantly solidifying its operations.”

In a separation agreement detailed in a filing with the U.S. Securities and Exchange Commission, Under Armour said it will pay Frisk a lump sum of $6.9 million, which is twice his annual base salary and target level incentive awards; $238,000 for potential relocation costs; and $1.3 million to serve as a consultant through September 2023.

In return, Frisk will forfeit all of his unvested equity awards.

Browne joined the company in 2016 and became COO in 2020. In that role, he has overseen Under Armour’s supply chains, global planning, sustainability, information technology and enterprise data management operations.

Like its competitors in the sports apparel and footwear sector, Under Armour has been hit by disruptions in its supply chains and market uncertainties due to the coronavirus pandemic.

Earlier this month, Under Armour reported an unexpected loss of $59.6 million in the first three months of the year, prompting a steep drop in its share price.

The footwear and sports apparel company said the poor results were a combination of several factors — chiefly, global supply chain snarls, COVID-19 uncertainty and inflationary pressure.

The company’s stock price closed at 10.53 a share Wednesday but was drifting lower in after-hours trading. It’s 52-week high is $23.00

Locally, the company is moving forward with its plans to relocate its global headquarters from Locust Point to Port Covington a few miles away in Baltimore, recently unveiling the design of the next phase of the campus.