Nike has announced a significant change at the top of the company. John Donahoe, who has served as CEO since January 2020, will step down from his position on October 13, 2024. He will be replaced by Elliott Hill, a Nike veteran with more than three decades of experience at the sportswear giant.
This leadership transition comes at a crucial time for Nike, as the company has faced challenges in recent months. Despite reaching its goal of $50 billion in annual revenue last year, Nike has lost market share to competitors and struggled with product innovation. The company’s stock price has reflected these difficulties, with a significant drop in June after the company lowered its fiscal 2025 guidance.
Elliott Hill, 60, is no stranger to the inner workings of Nike. After starting as an intern, Hill rose through the ranks to eventually oversee Nike and Jordan Brand operations in all four of the company’s geographic regions. His most recent role before his retirement in 2020 was President of Consumer and Marketplace. Hill’s deep understanding of Nike’s culture and operations is seen as a key asset in returning the company to its former glory.
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Nike’s board of directors, including Executive Chairman Mark Parker, expressed confidence in Hill’s ability to lead the company forward. Parker said, “Elliott’s global expertise, leadership style, and deep understanding of our industry and partners make him the right person to lead Nike’s next stage of growth.“
The market’s initial reaction to the leadership change was positive, with Nike shares jumping 10.2% in after-hours trading following the announcement. That jump added nearly $12.4 billion to Nike’s market capitalization, bringing it to approximately $134 billion.
Hill’s compensation package reflects the high stakes of his new role. He will receive an annual base salary of $1.5 million, with a target bonus of 200% of that salary and an annual target incentive award of $15.5 million. To earn these incentives, Hill will need to address the challenges that have plagued Nike in recent years.
One of Nike’s biggest problems has been its struggle to maintain dominance in key categories such as running. Critics have pointed to a lack of innovative products and a loss of market share to emerging brands such as On and Hoka. In addition, Nike’s Consumer Direct Acceleration program, launched under Donahoe’s leadership, has come under scrutiny for its aggressive focus on direct-to-consumer and digital channels at the expense of traditional wholesale partnerships.
In response to these challenges, Nike has recently begun to rebuild relationships with key retailers such as DSW, Macy’s and Foot Locker. This move signals a potential shift back to a more balanced distribution strategy.
As Hill prepares to take the reins, he expressed enthusiasm for the task ahead: “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.“
Hill’s return to Nike’s executive team is not an isolated event. In July, the company rehired former executive Tom Peddie as vice president of marketplace partners, underscoring its commitment to leveraging experienced talent to address current challenges.
As Nike prepares to report first-quarter earnings next month, all eyes will be on Elliott Hill and his strategy to reinvigorate the brand, regain market share and drive innovation in an increasingly competitive sportswear landscape.
