Nike CEO Mark Parker to step aside; John Donahoe steps into his shoes

Come January 13, Nike’s CEO Mark Parker will step down after running the company for more than a decade, announced the sportswear company on its website. The sporting goods giant on Tuesday has named former eBay head John Donahoe as the new CEO who will take over from Parker as the President and Chief Executive officer from January 13. Meanwhile, Mark Parker will continue to lead the company's board of directors.

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Change part of digital transformation: Parker

Reports suggested that Paker said that change was a part of Nike's attempts to speed up the digital transformation of the company's business. Parker joined the company in 1979, worked his way up the ranks over the years to become the chairman, president, and CEO in 2016. He is all set to become the board's executive chairman and work closely with Donahoe, Nike said in a statement.

Donahoe currently serves as the president and CEO of ServiceNow, a tech services firm, and is also a member of Nike's board — a position which he will maintain even after assuming the position. Parker said that change was directed towards using technology to increase the company's output and efficiency. He further added that Donahoe's expertise in digital commerce, technology, global strategy, and leadership will make him an ideal candidate to speed up the company's digital transformation. 

Moments before the announcement, Parker said that the goal is to utilise the digital tools available to lift the company's ability to compete and expand the business. It is all about accelerating the strategy, he said adding, he will be actively engaged and will work with the successor to make ensure a smooth transition. Under Parker, Nike's sales skyrocketed and witnessed rising stock prices. 

Read: Nike CEO Mark Parker’s Involvement In Doping Scandal Raises Concern

Mark's term riddled with scandals

As per reports, the company has been facing controversy in recent weeks after it shut down an elite training program for athletes after coach Alberto Salazar was banned for four years for doping violations. Parker initially supported Salazar in that scandal. However, Parker said that this change has nothing to do with Salazar. 

Last year, about a dozen executives were removed at Nike and Parker apologised citing reports of widespread sexual harassment and bullying. The scandal had put Nike in an awkward position as the brand was recognised by equality and empowerment. The Nike change has been the second management shakeup at a sports goods company on Tuesday after Under Armour founder announced that he will step aside on January 1.

(With inputs from PTI) 

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