BEAVERTON, Ore. — Nike announced Thursday that John Donahoe will retire from his role as president and CEO, effective Oct. 13. Elliott Hill, a former president of consumer and marketplace at the company, will replace Donahoe as president and CEO, starting Oct. 14.
Donahoe will stay on as an advisor at Nike through the end of January 2025. Hill will also become a member of the board of directors and 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," said Mark Parker, executive chairman of NIKE, Inc.
"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," Parker concluded.
Nike employees were also happy about the appointment of Hill, according to Matthew Kish, business reporter for the Oregonian who has covered Nike for more than a decade.
"My cell phone all afternoon I've been getting text messages from current employees who are very happy about the news," Kish told KGW. "They've described him as authentic, a good leader, someone who knows the business. It does signal that Nike wants to continue to kind of refocus on sports and products."
Hill held senior leadership positions at Nike, including as president of consumer and marketplace for Nike and Jordan Brand, before he retired in 2020.
"Nike has always been a core part of who I am, and I'm ready to help lead it to an even brighter future. For 32 years, I've had the privilege of working with the best in the industry, helping to shape our company into the magical place it is today," Hill said. "I'm eager to reconnect with the many employees and trusted partners I've worked with over the years, and just as excited to build new, impactful relationships that will move us ahead. Together with our talented teams, I look forward to delivering bold, innovative products, that set us apart in the marketplace and captivate consumers for years to come."
Parker thanked Donahoe in the news release for his time as president and CEO at Nike, citing specifically Donahoe's role in leading the company during the COVID-19 pandemic. Donahoe became CEO of Nike in 2019 after Mark Parker retired.
"It's been an honor and privilege to be part of this incredible company, and I'll always value my time at Nike and the opportunity to lead the organization. I have great respect for Phil, Mark, Nike and its employees," Donahoe said. "It became clear now was the time to make a leadership change, and Elliott is the right person. I look forward to seeing Nike and Elliott’s future successes."
Nike has had a challenging year. The company, which employs about 83,000 workers worldwide, including more than 11,000 at its Beaverton headquarters, announced in February that it would lay off 2% of its workforce across the world, including about 740 employees in Beaverton. The company's stock has fallen from $122.53 in late December 2023 to $87.10 on Thursday.
Kish explained that Donahoe came from a technology and consulting background and under him, the business shifted its focus more on where Nike was selling its products than on innovation. Under Donahoe, Nike pulled its product from stores and tried to focus on selling its products on the Nike apps or in its own stores.
"And what Nike is signaling now is maybe a little bit more focus is going to be back on what you see on shelves," Kish said.
A Wall Street analyst told Kish that while Thursday's move is a great short-term move, particularly for employee morale, there's still a lot of work to do.
"In the end, there also needs to be strategic changes," Kish said. "There needs to be more continued momentum on growing the business, going back into wholesale accounts and getting fresher, more interesting products back on shelves."
Other shoe brands, like Hoka and On, have now provided Nike with true competition, especially since Nike pulled its products from store shelves. Customers went elsewhere, Kish explained, and liked what they found.
"Those companies now have consumers that have embraces their products and once you move away from a brand, it's harder to get a consumer back. So that's going to be one of Hill's challenges," Kish said.
