In a surprise move, Nike, Inc. on Thursday announced CEO John Donahoe will be retiring Oct. 13 and will be replaced by Elliott Hill, who will serve as president and chief executive and serve on the board of directors and executive committee.
The move comes as the athletic giant struggles with a slumping stock price and competition from smaller rivals. The stock jumped in extended trading on the news.
Hill will be tasked with turning around the company. Here's what to know about the incoming CEO:
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Hill retired from Nike in 2020 after a long career with the company, but the board and Executive Chair Mark Parker asked him to come back, citing their many years of working together.
Before retiring four years ago, Hill was president, consumer and marketplace, leading all commercial and marketing operations for Nike and Jordan Brand. He previously spent more than 30 years at the company and held several executive leadership positions.
In the last quarter, the Jordan brand, created for Chicago Bulls NBA star Michael Jordan, hit nearly $7 billion in sales, up 6% from the prior year.
"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.
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Hill is a graduate of Texas Christian University (TCU) and Ohio University and serves on the board of trustees for TCU.
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Nike's stock is down 24% year to date, versus the S&P 500's nearly 20% rise.
