Nike on Thursday introduced it might replace CEO John Donahoe together with his former colleague, Elliott Hill, sending the inventory hovering on the information.
Hill, 60, is returning to Nike 4 years after retiring from the sneaker big. In accordance with the corporate, Hill spent many years in management positions in Europe and North America, serving as president of its client and market enterprise items and main business and advertising and marketing operations for the Nike and Jordan manufacturers. After the corporate introduced that Donahoe would step down, share costs leapt as excessive as 11% in after-hours buying and selling.
To welcome him again into the fold, Nike provided Hill a complete compensation bundle valued at $27 million. That features fairness and money awards valued at $7 million to make him complete for compensation he’s forsaking to reunite with Nike, and complete potential money and inventory awards valued at $20 million. His money bonus, and a long-term fairness incentive award valued at $15.5 million, are tied to efficiency metrics.
“Personally, I’ve labored with Elliott for greater than 30 years and I look ahead to supporting him and his senior administration staff as they seize the alternatives forward,” Nike govt chairman Mark Parker mentioned in a press release. Parker mentioned Hill’s return was a part of a “considerate succession course of” and Hill landed the gig on account of his world experience, management type, and keenness for sports activities and athletes.
John Donahoe, who has led Nike since 2020, will keep on till he steps down on Oct. 14. Donahoe will stick round as a full-time non-executive worker of the corporate till his Jan. 31, 2025 retirement date. His excellent fairness will vest throughout that point. Donahoe’s complete compensation final 12 months was valued at $29 million, in accordance with Nike. He joined Nike as a board member in 2014 earlier than being tapped as president and CEO in 2020.
His efficiency main the shoe big has been mixed. In the newest quarter, revenues have been down 2% and the corporate projected gross sales declines for fiscal 2025. In June, the corporate’s market cap shed $24 billion.
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