Nike CEO Resigns as Company Stock Jumps Nearly 10 Percent

Nike CEO John Donahoe will step down next month, as the company faces its weakest financial results to date. The role will be taken over by company veteran Elliott Hill. Nike shares rose by nearly 10% following the leadership change announcement.

Nike’s Board of Directors issued a press release on Thursday announcing that Elliott Hill, who retired in 2020, will return to take over as CEO starting October 14, 2024.

Elliott Hill, 60 years old, was born in Austin, Texas. The American began his 32-year career at Nike as an intern. He later held sales positions and went on to lead all commercial and marketing operations for Nike and Jordan Brand. Elliott Hill retired in 2020, during the COVID pandemic.

Donahoe, a former consultant at Bain & Company and former chief executive officer at eBay, was the second CEO in Nike’s history to be hired from outside the company. He has held the role since January 2020 and was initially praised for guiding the brand through the coronavirus pandemic. He is also known in the industry for accelerating the shift toward direct-to-consumer (“direct to consumer”) sales.

The Board of Directors and John Donahoe have decided that he will step down from his roles as President and Chief Executive Officer, as well as from the Board of Directors, effective October 13, 2024. He will remain with the company as an advisor to ensure a smooth transition until January 31, 2025.

At the end of June, the company reported its financial results for the fourth fiscal quarter. Through this report, Nike warned that it expects a 10% drop in sales, driven by weak demand in Asia as well as global consumer trends. After the negative report, the company had the worst trading day in its history, with some analysts speculating that Donahoe would soon be replaced by a new CEO. At that time, Nike co-founder Phil Knight stated that John Donahoe had both his full confidence and support.