Under Armour said Monday it approved a two-for-one stock split, and will issue a new class of shares without voting rights.
The company said holders of a share of Class A or Class B common stock will get one share of the new non-voting Class C stock. It did not say when it will issue the shares, but said they will trade under a different stock ticker than its Class A shares.
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The new shares won't give their owners the power to vote on board elections, company resolutions or other matters.
The Baltimore-based company had 179.4 million Class A shares and 36.2 million Class B shares as of March 31. Founder, Chairman and CEO Kevin Plank owns all the Class B shares, which have 10 times as much voting power as the Class A shares. That gives Plank majority control of the company.
Under Armour also disclosed Monday that Plank signed an agreement not to compete with Under Armour for five years if he leaves the company.
Under Armour is calling a special shareholder meeting on Aug. 26 to have shareholders vote on proposed changes to its charter. Plank agreed to vote his shares in favor of those changes, and it said the changes will be implemented before it splits its stock.
Class A shares of Under Armour Inc. fell 10 cents to $81.19 on Monday.