Nike Names Elliott Hill as New CEO, Stock Surges 8%

Sep 20, 2024, 08:11 AM

Nike has announced a significant leadership change, appointing Elliott Hill as the new CEO, replacing John Donahoe. Hill, a company veteran with a 32-year tenure at Nike, started his career as a sales intern and has now ascended to the top position. The leadership change comes amid declining sales and strategic missteps under Donahoe's nearly five-year tenure, during which Nike's stock fell approximately 25% year-to-date and the company lost nearly $40 billion in market value. Donahoe received $104 million in pay and benefits during his tenure. The market reacted positively to the news, with Nike's stock surging by 8% after-hours. Hill's appointment is seen as a move to return to Nike's product roots and repair relations with retailers, a strategy that had taken a backseat under Donahoe. Analysts and investors are optimistic about Hill's potential to drive a turnaround for the sportswear giant.