Nike’s stocks rise 10 percent after changing CEO
Date
9/22/2024 3:55:14 AM
(MENAFN) Nike, the American athletic footwear and apparel giant, experienced a significant surge in its stock price on Thursday, rising 10 percent following a major change in its executive leadership. In after-hours trading, Nike’s shares jumped to USD89.26, up from a closing price of USD80.98 earlier in the day on the New York Stock Exchange. This dramatic increase reflects investor confidence in the company's new direction under a familiar face.
The company’s board of directors announced that CEO John Donahoe will retire from his position, with longtime Nike veteran Elliott Hill stepping in as the new president and CEO. Hill's return to the top leadership role is seen as a strategic move, given his extensive experience with the company. He will also join both the board of directors and the executive committee, which underscores the board's commitment to integrating his leadership into the company's future plans.
Mark Parker, the Executive Chairman, commented on the decision, highlighting the board's careful succession planning process. He emphasized that Hill's global expertise, leadership style, and profound understanding of the industry and its partners make him exceptionally well-suited to guide Nike through its next phase of growth. Parker noted that Hill’s passion for sports, as well as for the brand and its consumers, positions him as the ideal leader for the company’s future endeavors.
During his 32 years at Nike, Hill held various senior leadership roles in both Europe and North America, contributing significantly to the company’s growth, which now exceeds USD39 billion in revenue. Meanwhile, Donahoe will remain with Nike in an advisory capacity until January 31, 2025, to assist during the transition. He expressed confidence in the timing of this leadership change, stating, “It became clear now was the time to make a leadership change, and Elliott is the right person. I look forward to seeing Nike and Elliott’s future successes.”
MENAFN22092024000045015839ID1108700534
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.