Nike’s Long Time CEO is Suddenly Leaving the Company

Things may shake up soon for athletic apparel retailer Nike after the company announced that its longtime CEO is stepping down.

Chief Executive Mark Parker is leaving the company in January of 2020 and in his place will be John Donahoe, the ex-CEO of eBay as well as a Nike board member. Donahoe is currently the CEO of ServiceNow and is chairman of the board at PayPal.

ServiceNow shares tumbled over 10% on the news while Nike shares were slightly moving up and down on the announcement.

Parker will become the company’s executive chairman, according to a press release. He has been with Nike for four decades and had roles as vice president of global footwear and co-president.

According to Parker, who spoke with CNBC’s Wilfred Frost, Donahoe is “no stranger” at Nike and decidedly is “the best choice to come in.”

Donahoe should “enable this next level of growth,” digitally, for the company, said Parker. And he added Nike’s board has spent “many months working on succession planning. … This is not something that happens in a matter of weeks.”

“This is an exciting time for Nike where we see brand strength and momentum throughout the world and great opportunity for future growth,” said Parker. “I am delighted John will join our team. His expertise in digital commerce, technology, global strategy and leadership combined with his strong relationship with the brand, make him ideally suited to accelerate our digital transformation and to build on the positive impact of our Consumer Direct Offense. I look forward to continuing to lead the Board as Executive Chairman, as well as partnering closely with John and the management team to help him transition to his new role.”

“It is an honor to become President and CEO of this amazing, innovative company, and to join the more than 76,000 talented and passionate employees dedicated to serving athletes,” said Donahoe. “Over the last five years, I’ve been proud to be connected to Nike through my role on the Board and now look forward to being a full-time member of the team, working even more closely with Mark, building on Nike’s success and seizing the opportunities ahead.”

It was also this week that Kevin Plank, the CEO of Under Armour, announced that he is stepping aside as CEO on Jan. 1 and will be succeeded by COO Patrik Frisk.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.