Nike CEO Mark Parker promised to overhaul the athletic apparel maker’s systems for handling workplace-behavior complaints after reports of improper conduct that spurred a shakeup in the firm’s executive ranks.
Nike didn’t provide further specifics, though Parker said the actions described didn’t reflect its core values of “inclusivity, respect and empowerment” in an internal memo, which was first reported by the Wall Street Journal, then picked up by other news media including an Oregon television reporter who shared it on Twitter.
In addition to reviewing Nike’s personnel practices, Parker also realigned his leadership team to focus more sharply on culture: Elliott Hill will become president of consumer and marketplace, overseeing areas including the Michael Jordan brand; and Michael Spillane will continue to lead categories, design, product and merchandising.
Trevor Edwards, who spent 25 years at Nike and had been Parker’s top lieutenant, resigned the post of Nike brand president effective immediately and will retire in August, the company said in a regulatory filing. There were no direct allegations of misconduct against him, said Ilana Finley, a company spokeswoman.
Edwards, who received total compensation of $4.99 million in the Beaverton, Ore.-based company’s most recent budget year, “helped us grow and strengthen our brand on a global scale,” Parker said in a statement.
The CEO, who committed to remaining in Nike’s top post beyond 2020, said he’s determined to “make the necessary changes so that our culture and our company can evolve and grow.” Parker received total compensation of $13.9 million in the firm’s 2017 budget year.
“We’ve heard from strong and courageous employees,” he said in the memo. “This has been a very difficult time, and we are still talking to team members to better understand what we need to change.”
Nike fell as much as 0.6 percent in New York trading on Friday before rebounding to $66.50.
