Nike chief executive John Donahoe to step down

Nike’s chief executive will step down next month after a turbulent year for the sportswear brand’s shares amid increased competition from rivals.
John Donahoe, 64, who has served as president and chief executive since January 2020, will step down from the roles next month. He will be replaced by Elliott Hill, 60, a former president of consumer marketplace at Nike, who left the company in 2020 and is returning to lead its turnaround efforts.
Nike’s shares have fallen 24 per cent since the start of the year, with the stock falling sharply in June when the company forecast a surprise drop in annual sales.
Investors are worried about the loss of market share to rival brands such as the Roger Federer-backed On and Deckers Outdoor.
Wall Street analysts had raised the possibility of a management shake-up ahead of the company’s investor day in November.
In a statement, Nike said the board and Donahoe had mutually decided that he would retire from the board of directors on October 13. He will remain as an adviser to the company to ensure a smooth transition through to the end of January.
In the course of his 32-year career at Nike, Hill has held senior leadership positions across Europe and North America. Since retiring from Nike, he has taken on multiple board roles, including at Culligan International, a water treatment company, and Tecovas, a cowboy boots retailer.
Nike’s shares were up almost 8 per cent to $87.31 in extended trading in New York on Thursday night.
Nike said in a regulatory filing that Hill’s compensation as president and chief executive would include an annual base salary of $1.5 million. The leadership change “gives a positive signal because it is someone that knows the brand and knows the company very well”, Jessica Ramirez, analyst at Jane Hali & Associates, said.