On Holding’s Big Leadership Change: What It Means for the Future
Swiss sportswear brand On Holding is making a bold move at a crucial time in its growth journey. The company has announced that its co-founders, David Allemann and Caspar Coppetti, will step in as co-CEOs, replacing current CEO Martin Hoffmann.
This leadership change comes as the company prepares for what it calls its “next growth phase.” But investors didn’t react positively—shares dropped 11% following the announcement.
So what’s really going on behind the scenes? Let’s break it down in a simple and engaging way.
A Major Shift at the Top
Founders Step Back Into Leadership
Starting May 1, David Allemann and Caspar Coppetti will officially take over as co-CEOs. Both are original founders of the company and have played key roles in shaping its identity and rapid rise.
This move signals a return to founder-led leadership, which often happens when companies want to refocus on long-term vision and brand identity.
What Happens to Martin Hoffmann?
Martin Hoffmann, who has been CEO for the past five years, isn’t leaving entirely. Instead:
- He will stay on as an advisor until March 2027
- He plans to shift focus toward philanthropic activities
Hoffmann has been a major part of the company’s journey, including leading its successful IPO in 2021.
Why Is On Making This Change?
Preparing for the “Next Growth Phase”
The company made it clear that this leadership shift is about the future. As On continues to expand globally, it wants leadership that is deeply connected to its original vision.
Founder-led companies often:
- Move faster in decision-making
- Focus more on brand storytelling
- Take bold, long-term strategic bets
This suggests On is not just thinking about short-term gains but aiming to build a lasting global brand.
Investors React: Shares Drop 11%
Market Concerns
Despite the company’s optimism, the market reacted negatively. On’s stock fell 11% on the day of the announcement.
Why?
Investors may be worried about:
- Leadership uncertainty during the transition
- Slowing growth expectations
- Execution risks in a competitive market
Slower Growth Forecast Adds Pressure
Earlier in the month, On had already warned that its sales growth would slow more than expected this year.
This combination of slower growth and leadership change likely made investors nervous.
On’s Rise: A Fast-Growing Challenger Brand
Competing With Industry Giants
On has quickly become a strong competitor to established brands like Nike and Adidas.
Its success has been driven by:
- Innovative running shoes
- Premium pricing strategy
- Strong brand identity
Winning Over a Broad Audience
According to Allemann, the company has managed to attract what he calls an “ageless athlete”—a wide range of customers across different age groups.
On is also expanding into multiple categories, including:
- Running
- Tennis
- Performance apparel
This diversification is helping the brand grow beyond its original niche.
The Strategy: Premium and Selective Growth
Not Chasing Everything
One interesting part of On’s strategy is its focus on being selective.
Instead of expanding aggressively into every category, the company is choosing specific areas to invest in and grow.
This “premium play” means:
- Higher-quality products
- Stronger brand positioning
- Less risk of overexpansion
Long-Term Thinking
Allemann has emphasized that the company isn’t just building for the next few years—it’s thinking decades ahead.
This aligns with the decision to bring founders back into leadership, as they are often more focused on legacy than short-term results.
Leadership Changes Beyond the CEO Role
New CFO and Operational Leadership
The leadership shakeup doesn’t stop at the CEO level.
Starting May 1:
- Frank Sluis will take over as Chief Financial Officer
- Scott Maguire will become President and Chief Operating Officer
These changes suggest a broader restructuring aimed at supporting the company’s next phase of growth.
Hoffmann’s Legacy: A Transformational Era
Leading the IPO
Martin Hoffmann played a crucial role in taking On public in 2021, marking a major milestone for the company.
The IPO helped:
- Raise capital for expansion
- Increase global visibility
- Strengthen its position in the market
Ambitious Growth Goals
Under Hoffmann’s leadership, On launched a plan to:
- Double its sales by 2026
- Become the most premium global sportswear brand
While the company is still working toward these goals, the leadership change suggests a shift in how it plans to achieve them.
What This Means for the Future
A Founder-Led Comeback
Bringing founders back into leadership often signals a desire to:
- Reconnect with the brand’s roots
- Strengthen innovation
- Take bold strategic risks
This could be a positive move if executed well.
Risks to Watch
However, there are also challenges:
- Co-CEO structures can sometimes lead to decision conflicts
- Slowing growth could pressure leadership
- Competition from global giants remains intense
Key Takeaways for Investors
Short-Term vs Long-Term View
In the short term, the market reaction shows uncertainty. But in the long term, this move could strengthen the company’s identity and strategy.
What to Watch Next
Investors should keep an eye on:
- How the co-CEO structure works in practice
- Future earnings and growth trends
- Expansion into new markets and categories
Final Thoughts
On Holding is at a turning point. The decision to replace its CEO with its founders is bold, but not uncommon for companies entering a new phase of growth.
While the stock market reacted negatively, the long-term impact will depend on how well the new leadership executes its vision.
If the founders can combine their original passion with a clear strategy for global expansion, this move could mark the beginning of an exciting new chapter for the brand.
