Nike Appoints Elliott Hill as New CEO, Stock Surges 9% After-Hours

Sep 19, 2024, 09:23 PM

Nike has announced a significant leadership change with Elliott Hill replacing John Donahoe as CEO. Hill, a veteran of the company with over 32 years of experience, started his career at Nike as an intern and has held various roles, including helping to take the Jordan brand global. The leadership change comes amid rising competition and strategic missteps that have pressured Nike's sales. Donahoe's contract was set to expire in Spring 2025, and he was initially backed by Phil Knight despite concerns. Donahoe, who focused on digital expertise, saw Nike's stock decline during his tenure. Following the announcement, Nike's stock surged by 9% in after-hours trading. Hill's compensation as CEO will include an annual base salary of $1.5 million. The market reaction reflects investor optimism about Hill's ability to steer the company back on track.