Nike CEO John Donahoe Steps Down After 5 Years As Former Company Veteran Elliott Hill Returns
It looks like a series of missteps have resulted in Nike CEO John Donahoe stepping down from the nation's largest sportswear company, NIKE Inc.
The company made the head-turning announcement Thursday, claiming Donahoe "decided he will retire from his role as President and Chief Executive Officer from NIKE, Inc."
Following Donahoe's retirement after five years, long-time NIKE veteran Elliott Hill will make a comeback, effective October 14, 2024. Hill is also set to join NIKE's Board of Directors, in addition to becoming a member of the executive committee.
"I am excited to welcome Elliott back to NIKE. Given our needs for the future, the past performance of the business, and after conducting a thoughtful succession process, the Board concluded it was clear Elliott's global expertise, leadership style, and deep understanding of our industry and partners, paired with his passion for sport, our brands, products, consumers, athletes, and employees, make him the right person to lead Nike's next stage of growth," Mark Parker, Executive Chairman of NIKE, Inc, stated.
"Personally, I have worked with Elliott for more than 30 years and I look forward to supporting him and his senior management team as they seize the opportunities ahead."
🚨BREAKING: Nike CEO John Donahoe to step down
— AJ Huber (@Huberton) September 19, 2024
Why so many people are stepping down?
Enjoy the movie. 😎 Mass arrests... pic.twitter.com/PlkDOrrkYI
According to the 'BBC,' the company's demand for trainers has been declining in international markets such as China, resulting in a drop in the stock price. However, shares surged over 9% in after-hours trading after the announcement that Elliott Hill would be returning to the company.
The news outlet also reported that Donahoe's role has been difficult, marked by significant changes in the retail landscape during the Covid-19 pandemic and rising inflation in the following years.
The footwear brand has also contended with intense competition from newer brands like On and Hoka, which some analysts consider to be more innovative and in tune with current trends.
"It became clear now was the time to make a leadership change," Donahoe stated, per 'BBC,' before suggesting that Hill was "the right person" for the job and is excited to see him move forward successfully.
