Nike co-Founder & Chair PHIL KNIGHT yesterday "announced plans to step away from the company" and recommended that CEO MARK PARKER replace him, which is "likely to occur" in '16, according to Allan Brettman of the Portland OREGONIAN. Knight, 77, also announced that he had "created a limited liability company called Swoosh that would hold a majority of his Nike Class A Common Stock shares." The Swoosh shares represent about 15% of the "combined total outstanding shares of Nike Class A and Class B Common Stock." Knight has formed a Swoosh BOD to "serve as its governing body, which will determine how the Class A shares are voted and managed going forward." The board will "initially have four members, who exercise five votes." Nike announced that Knight's son, TRAVIS KNIGHT, 41, who is CEO of movie studio Laika, "would join" the Nike BOD. But Brettman writes the selection "is curious as the Nike co-founder's son had not shown previous interest in following in father's sneakered footsteps." Parker was named CEO of Nike in '06 (Portland OREGONIAN, 7/1). The WALL STREET JOURNAL's Germano & Lublin note Parker taking on the role of Chair "would be in addition" to his current CEO title. Knight in '06 "handed day-to-day management" to Parker, after his previously anointed successor, WILLIAM PEREZ, an "outsider with little experience in footwear, left after 13 months." When Parker took over, he had "worked for the company for 27 years as a designer." A company spokesperson said that Knight is "healthy and active in Nike's affairs" (WALL STREET JOURNAL, 7/1). Knight in a statement said that he "still planned to stay involved with Nike," which he founded in '64. But he added that he "felt it was important to outline a succession plan." In N.Y., Hiroko Tabuchi notes the final decision on Parker "will be made" by the Nike BOD (N.Y. TIMES, 7/1).
GOING OUT ON TOP: WOMEN'S WEAR DAILY's Arnold Karr noted with an estimated net worth of $24.3B, Knight is the "22nd richest man in the U.S." Before "relinquishing active day-to-day management, he built among the largest sports-oriented footwear and apparel companies in the world." Nike has "maintained a steely grip on both sports and culture that is felt in virtually every corner of the globe, including a presence in international sports, inescapable visibility at global sporting events and endorsement arrangements with many of the world's greatest athletes" (WWD.com, 6/30). CNBC’s Kelly Evans noted Nike is “coming off a pretty strong quarter” as well (“Closing Bell,” CNBC, 6/30). CNBC’s Jim Cramer said there was a “period when Nike wasn't that well run" with Knight, then Perez and now Parker. Cramer: "This Nike quarter was the best in terms of tremendous growth in Germany, tremendous growth in Western Europe, tremendous growth in China, not that bad in Brazil despite the falloff from the World Cup." The net’s Sara Eisen noted Knight's resignation marks the "end of an era” (“Squawk on the Street,” CNBC, 7/1). Radio host Dan Patrick said Knight “married pop culture with athletes” and the company has had “so many incredible ad campaigns” (“The Dan Patrick Show,” 7/1).
