Nike announced Thursday that its CEO, John Donahoe, will step down from his position on October 13. Replacing Donahoe at the helm will be former Nike executive Elliott Hill. Hill retired from Nike in 2020, but had previously served in numerous leadership roles at the company.
“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 Nike executive chairman Mark Parker. Parker added, “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.”
Donahoe will transition to an advisory role to the board through January 31.
Hill, 60, will take the reins of one of the most recognizable and influential companies in the fashion industry. He’s received a compensation package that reflects the magnitude of the position. According to filings with the Securities and Exchange Commission, Hill will receive an annual base salary of $1.5 million, a target bonus of 200% of his salary, and an annual target incentive award of $15.5 million.
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But to cash in on the lucrative bonus and incentive pay, Hill will be tasked with getting Nike back on track. Over the past year, Nike has ceded market share in key categories like running and faced criticism for a perceived lack of innovative products.
Donahoe joined Nike in January 2020, just as the company was accelerating its digital initiatives. He replaced longtime CEO Mark Parker. Donahoe came to Nike from ServiceNow Inc, where he served as president and CEO. He also served as chairman of PayPal Holdings.
Analysts have also been critical of the progress of Nike’s Consumer Direct Acceleration program, which was launched in June 2020 under Donahoe’s leadership. The program was intended to prioritize direct-to-consumer and digital channels, and even pull back from some wholesale channels. In recent months, however, Nike has re-established or reinvigorated wholesale partnerships with retailers such as DSW, Macy’s and Foot Locker.
“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,” Donahoe said.
Prior to his retirement in 2020, Hill served as Nike’s president of consumer and marketplace. In that role, he oversaw Nike and Jordan brand operations across all four of the company’s geographic regions.
“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. He added, “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 is not the first Nike veteran the company has brought back recently to bolster its leadership team. In July, former executive Tom Peddie was rehired as vice president of marketplace partners.
In June, Nike Inc. announced sales results that fell short of expectations. At the time, Donahoe attributed the disappointing sales to a decline in lifestyle sales as well as uncertainty in macroeconomic conditions, which led the company to lower its fiscal 2025 guidance.
Nike is scheduled to report first-quarter earnings next month.
