Nike has announced that Elliott Hill will replace current CEO John Donahoe, leading to a significant boost in the company’s stock, which surged by up to 11 per cent in after-hours trading.
Mr Hill, 60, is returning to Nike after a four-year retirement. He previously held numerous leadership roles within the company, overseeing operations across Europe and North America and leading commercial and marketing efforts for both the Nike and Jordan brands.
To welcome Mr Hill back, Nike has offered him a compensation package valued at €24 million. This includes €6 million in equity and cash awards to compensate for earnings left behind to rejoin Nike, along with a possible €17 million in cash and stock awards, with a €13.8 million long-term equity incentive tied to performance metrics.
Nike’s Executive Chairman, Mark Parker, highlighted Mr Hill’s global expertise, leadership style, and passion for sports as key factors in his appointment. “I’ve worked with Elliott for more than 30 years and look forward to supporting him and his team as they seize the opportunities ahead,” said Mr Parker, describing Mr Hill’s return as part of a carefully planned succession process.
Mr Donahoe, who has been Nike’s CEO since 2020, will remain with the company until his retirement on 31st January 2025. He will continue as a full-time non-executive employee during this period, with his equity awards vesting until his departure. Last year, Mr Donahoe’s total compensation was valued at €25 million. While he has led Nike through challenging times, the company recently reported a 2 per cent drop in quarterly revenue and projected a sales decline for fiscal 2025. In June, Nike’s market cap fell by €21 billion.
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