A second veteran Nike exec is leaving in the wake of "internal complaints about inappropriate workplace behavior," according to sources cited by Germano & Lublin of the WALL STREET JOURNAL. Sources said that Nike VP & GM/Global Categories JAYME MARTIN was "forced out of the company and is no longer an employee." Martin, who joined Nike in '97, was a "top lieutenant" to Nike Brand President TREVOR EDWARDS, who on Thursday resigned from his role. A source said that Nike has "received complaints" pertaining to Martin, but "no direct complaints" about Edwards. Germano & Lublin noted Martin has "already left the company," while Edwards will "remain on the payroll as a consultant and retire as a Nike employee in August." A source said that Martin and Edwards "protected male subordinates who engaged in behavior that was demeaning to female colleagues." The source said that their lieutenants "bullied people who weren't in their group," such as "women and individuals from foreign countries." The departures of two longtime execs is "unusual for Nike, which has prized loyalty and groomed talent from within" (WALL STREET JOURNAL, 3/17). In Portland, Mike Rogoway noted Nike "didn't specify the reason for Martin's departure." The "sudden, staggered ousters of two of Nike's most important and visible executives suggest the company is facing a reckoning over issues around workplace behavior -- and is struggling to come to grips with them" (Portland OREGONIAN, 3/17). CNBC's Scott Wapner called the exit of Edwards a "bombshell" that raises "some serious questions about the company’s future." But Nomura analyst Simeon Siegel said, "There’s something to be said for the fact that we’re seeing this headline come out of Nike, not from an external source" ("Power Lunch," CNBC, 3/16).
ENOUGH IS ENOUGH: The WALL STREET JOURNAL's Germano & Lubin cite sources as saying that a group of female employees at Nike last year "circulated an informal survey about alleged inappropriate behavior by men" at the company, a move that "preceded" the exits of Martin and Edwards. Sources said that the women were "frustrated with what they saw as pay disparity and a gender imbalance at the highest ranks of Nike." Sources added that the women were also "concerned about allegations circulating internally of inappropriate workplace behavior by some men and drew up the survey to gather information about these issues." The distribution of the survey "came to the attention" of Nike Chair, President & CEO MARK PARKER in recent months and "triggered a formal review of workplace behavior by an outside firm" (WSJ.com, 3/19). Pro4ma Founder & CEO Lizabeth Dunn said, "The market will shake this off. I don’t know that it should. Culture and people are enormously important … (and) at a company like Nike, culture has to be very, very important and it’s troubling" ("Power Lunch," CNBC, 3/16).
HEIR TO THE THRONE: In Portland, Clare Duffy noted Edwards' exit is "opening new questions about who will eventually succeed" Parker, who "somewhat abruptly announced his intention" to stay in his position beyond '20 after Edwards' announcement. Susquehanna analyst Sam Poser said, "Nike's CEO succession plan is now very much in question." Poser added the company's "swift restructuring" of the companies executives -- highlighted by moving ELLIOTT HILL to President of Consumer & Marketplace and having President of Categories & Product MICHAEL SPILLANE report directly to Parker -- is a "cause for concern." Poser: "While Mr. Edwards' departure may be good for Nike in the long-run, it is unclear how the disruption will impact Nike in the near-medium term" (BIZJOURNALS.com, 3/16). CNBC contributor Stephanie Link said Edwards was highly thought of inside Nike, but they "have a very deep bench,” and the announcement that Parker is staying beyond ’20 “actually more than offsets” Edwards' departure ("Power Lunch," CNBC, 3/16).
