- Push-out Score determined
- After 14 years in the position
- John Donahoe taking over
- Parker will remain as Executive Chairman at Nike
- Parker said 101 words
(exechange) — Beaverton, Oregon, October 22, 2019 — Mark Parker, chief executive of Nike, leaves his position. As announced by Nike Inc. in a news release and in a regulatory filing published on Tuesday, October 22, 2019, Mark G. Parker leaves his post as Chief Executive Officer at the footwear manufacturing company after 14 years in the role, effective January 13, 2020.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who announced their departure over the past 12 months was 7.3 years, according to data compiled by exechange. On an accumulated basis, around 27% of the CEOs who announced their departure over the past 12 months left their posts after more than 10 years.
Mark Parker’s duties as CEO will be taken over by John J. Donahoe, currently Chief Executive Officer of ServiceNow, Inc.
The fact that Mark Parker’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
In general, an outsider does not have the constraints of an insider when it comes to leading painful changes or making unpopular decisions.
“To accelerate our digital transformation”
A reason for Mark Parker’s departure from the CEO post was not explicitly provided. Parker said: “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.”
Parker will remain as Executive Chairman at Nike
“John Donahoe will be appointed as the company’s new President and Chief Executive Officer, effective Jan. 13, 2020. At the same time, Mark Parker, CEO since 2006 and Chairman, President & CEO since 2016, will become Executive Chairman and continue to lead the Board of Directors and work closely with Donahoe and the senior management team,” Nike said.
“Cease serving”
Nike said: “The Company also announced that, effective January 13, 2020, Mark G. Parker will cease serving as President and Chief Executive Officer and become Executive Chairman of the Board.”
Share price increase since October 2017
The announcement follows an increase in Nike, Inc.’s share price of 82% since October 2017.
In the position of CEO since 2006
Mark Parker became CEO of the Company in January 2006.
Long before he was named Chairman, President and CEO of Nike, Inc., Mark Parker was leading the company in other ways.
After running competitively at Penn State University, Parker joined Nike as one of the Company’s first footwear designers back in 1979.
And he’s been at the center of Nike innovation ever since.
For more than 30 years, he’s brought innovative concepts and engineering expertise into such vital roles as Vice President of Consumer Product Marketing, Vice President of Global Footwear and Co-President of the Nike Brand.
He’s led the way for Nike Air and a multitude of industry-breakthroughs in product design.
In addition to helping lead the continued growth of the Nike brand, Parker is responsible for the growth of Nike, Inc.’s global business portfolio, which includes Converse Inc. and Hurley International LLC.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
exechange reached out to Nike and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 43.2019 ($).