Parker's time at Nike will be remembered for considerable growth but also several controversiesGETTY IMAGES
MARK PARKER said his decision to step down as Nike President & CEO had "absolutely nothing to do" with the company shutting down the Oregon Project after head coach ALBERTO SALAZAR was banned four years for violating anti-doping rules. Parker said, "The succession planning is a really important part of any CEO's role and certainly has been a part of mine, so we've spent a lot of time over many months working on succession planning so this is not something that happens in a matter of weeks (and) it's really unrelated to Oregon Project or any other issues." He added, "This is really about me and the board really wanting to build on the momentum that we've got, add the horsepower, accelerate against our strategy and do it while I'm here and really in a position to lean in and make this as successful as possible." Parker will be replaced by Nike BOD member JOHN DONAHOE, who he called "absolutely the right leader for Nike" and what the company is "looking for moving forward." Parker: "He's a proven CEO of three successful companies, he's no stranger to Nike and we feel that he's actually the best choice to come in and actually usher this next wave of growth for Nike. ... He's very familiar with Nike over the past five years." Parker said he will be "very actively engaged" working with Donahoe as a "partnership" ("Closing Bell," CNBC, 10/22).
LOOKING BACK: In Portland, Jeff Manning notes the CEO transition, which will take effect Jan. 13, "marks just the second time in Nike history it has hired an outsider as the top executive or heir apparent to the top job." While Donahoe, the President & CEO of cloud computing firm ServiceNow, has "never worked for Nike, he has served on its board" since June '14. The company has "awarded him signing bonuses in stock and cash" worth up to $45M. Parker in his 13 years at Nike's top job "led the company to awesome growth." In a note to employees, Parker "implied the transition was his idea." The note also "indicates that Parker's future and rumors of his departure had circulated among employees." He wrote, "To be clear, I'm not going anywhere, I'm not sick. There are no issues I'm not sharing." The "surprise move comes after multiple issues became apparent at Nike, most recently a doping scandal" that led to Salazar's ban. Parker "adamantly denied he knew anything about the doping." Before the most recent issue, there were "plenty of other painful problems" during Parker's tenure, including women being "frustrated that they were paid less." Also, rival factions "engaged in a debilitating battle for control of the company," and criminal investigators "probed the elite teenage basketball world and found convincing evidence Nike and other sneaker companies were paying top teenage prospects" (Portland OREGONIAN, 10/23).
COINCIDENTAL TIMING? FOOTWEAR NEWS' Katie Abel wrote while Nike "positioned Donahoe's appointment as a natural move for the company as it steps up its digital-focused efforts, some insiders speculated that controversies surrounding Parker and the company played a role in the shift" (FOOTWEARNEWS.com, 10/22). In London, Matt Lawton noted Parker is stepping down "only three weeks after he was implicated" in the Salazar scandal. The "fact that Parker knew of the experiment" may have caused "massive reputational damage" to the brand (LONDON TIMES, 10/23). The FINANCIAL TIMES' Gray & Wells noted Parker's decision ends a tenure "celebrated on Wall Street for the sportswear brand's financial performance but also marked by a series of controversies" (FT.com, 10/22). CNBC.com's Thomas & Gilbert noted under Parker's leadership, Nike has "seen its stock surge and sales climb." But the company has also "faced its share of corporate culture scandals and backlash over controversial marketing campaigns" (CNBC.com, 10/22).
ON THE UP & UP: In N.Y., Creswell & Futterman noted Nike's stock has "nearly doubled in the past three years, reflecting Nike's growth in key markets like China and its focus on selling directly to consumers, both online and in its own stores" (N.Y. TIMES, 10/23). USA TODAY's Charisse Jones notes Nike's sales have "been on the rise as the company focuses on selling more of its swoosh-branded sneakers online and on its apps" (USA TODAY, 10/23).
WHAT WILL DONAHOE BRING? The L.A. TIMES notes in Donahoe, Nike gets a five-year board member who also "brings an outsider perspective." In addition to ServiceNow, Donahoe is currently PayPal Chair, and he "previously served" as eBay President & CEO. The decision to "pick a leader outside Nike's executive ranks followed a shake-up over misconduct last year" (L.A. TIMES, 10/23). The WALL STREET JOURNAL's Khadeeja Safdar notes Donahoe has a "background in the tech world rather than in sportswear" (WALL STREET JOURNAL, 10/23). Streetwear boutiques A Ma Maniere and Social Status owner JAMES WHITNER said Nike is "pushing more toward digital, so the most revealing information was not necessarily about (Parker) leaving and more about who is taking over." Whitner: "I'm curious to see how (their digital shift) affects the boutique landscape." Sneaker boutique Sportie LA CEO ISACK FADLON said Donahoe's hire "indicates where Nike is going in the digital realm, with technology and direct-to-consumer" (FOOTWEARNEWS.com, 10/22). At presstime, shares of Nike were trading at $93.22, down 2.49% from the close of business yesterday (THE DAILY).
