Get All Access for $5/mo

Under Armour CEO Unexpectedly Steps Down, Receives $7.1 Million in Severance After two years on the job, Patrik Frisk will step down as CEO of Under Armour, effective June 1.

By Madeline Garfinkle Edited by Jessica Thomas

Opinions expressed by Entrepreneur contributors are their own.

After two years on the job, Under Armour CEO Patrik Frisk announced on Wednesday he will be stepping down, effective June 1, with COO Colin Browne filling the role in the interim while the brand seeks a permanent replacement.

Frisk didn't share a concrete reason for his unexpected departure, and he declined to comment when prompted by CNBC, but it's undeniable that the struggling athletic brand had a disappointing quarter — after a disappointing few years.

Although the brand has seen periods of bounceback, Under Armour stock has generally plummeted since 2015, dropping 52% in the past year alone.

Related: Under Armour Stock Was Up 27 Percent Today. Here's Why.

When the former CEO stepped on the scene in 2017, he set out to revamp operations, putting in place a restructuring plan that concluded in March and cost the company $571 million. In the past few years the company has been committed to "building the foundation," Browne said, per Yahoo Finance. "We're at that next iteration."

The company is optimistic about the transition, and looks forward to finding its next leader to take the brand to "new heights."

Frisk will remain with the firm as an advisor until September 1 to assist with the transition, and he received a severance package worth $7.1 million.

"It has been the greatest privilege of my career to serve Under Armour athletes, customers, shareholders, and teammates. I am extremely proud of what we've accomplished as a team," Frisk said in a statement. "Colin has an intimate understanding of the Under Armour business and our industry. I have every confidence that his stewardship will allow for a seamless transition."

Related: Under Armour's CEO Was "Broke" After Year One. Here's What Happened Next.

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Starting a Business

How to Start a Freight Brokerage Business

Get your entrepreneurial destiny really moving by becoming a broker--matching shippers and transportation servicess--for the freight industry.

Business News

'I'm Not Trying to Land on Mars': Mark Cuban Takes Dig at Elon Musk to Explain Why His Online Pharmacy Isn't Trying to Make More Money

Mark Cuban Cost Plus Drug Co. is an online pharmacy co-founded by Cuban and radiologist Alex Oshmyansky.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Meta Makes $1 Million Dollar Donation to Donald Trump's Inaugural Fund

Meta CEO Mark Zuckerberg also reportedly gave Trump a pair of Ray-Ban Meta smart glasses.

Business News

'It's Not About You': How to Fire Someone Effectively, According to Kevin O'Leary

O'Leary says that if you can't fire someone, you aren't the right leader for the organization.