Footwear and apparel giant Nike made a suspiring move in an attempt to improve slumping sales. The company announced that its current CEO, John Donahoe, will step down from his position and be replaced by company veteran Elliott Hill.
Donahoe will give up his roles of CEO and President as well as his seat on the Board of Directors on October 13. He is expected to remain involved with the company as an advisor through January 2025 to provide assistance during the transition period.
Hill started working at Nike in 1988 as an intern. Since then, he has had several roles across multiple departments, with his latest one being the President of commercial and marketing operations for Nike and the company’s Jordan Brand. Hill decided to retire from the company when Donahoe was named CEO in 2020.
“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 at NIKE, said in a statement.
John Donahoe was announced as Nike’s CEO in 2019, being hand-picked by outgoing chief executive Mark Parker. Upon taking over the role a year later, Donahoe embarked on a cost-cutting effort while placing more focus on building Nike’s own stores and webshop. However, his methods were met with poor results, as the company’s sales not only slumped but it also fractured its relationship with retail partners.