Nike Names Elliott Hill as CEO, Stock Surges 8%

Sep 20, 2024, 09:34 AM

Nike has announced a major leadership change, with John Donahoe stepping down as CEO and being replaced by Elliott Hill, a veteran of the company with a 32-year career. The move comes amid declining sales and rising competition, which have pressured the sportswear giant. Nike's stock surged by approximately 8% in after-hours trading following the announcement. Hill's compensation as CEO will include an annual base salary of $1.5 million. Investors and analysts are optimistic about Hill's appointment, believing his extensive experience within Nike will help steer the company back to growth. During Donahoe's nearly five-year tenure, Nike spent nearly $104 million on his pay and benefits, while the company's market value declined by nearly $40 billion. The leadership change is seen as a necessary step to address strategic mistakes and reinvigorate the brand.