BEAVERTON, Ore. – Phil Knight stepped down Thursday as president and chief executive officer of Nike Inc., the $12 billion athletic shoe and clothing company he co-founded.
He will be succeeded by William Perez, head of S.C. Johnson &Son Inc., maker of Glade air fresheners and Drano drain cleaner.
Knight, 66, will remain as chairman of the company’s board of directors, Nike said.
A former University of Oregon track star, Knight founded Blue Ribbon Sports Inc. with Bill Bowerman in 1968. Knight’s first shoes, which he sold out of the trunk of his car, had soles made on Bowerman’s waffle iron.
The company was renamed Nike in 1972.
Under Knight’s direction, Nike has become the world’s largest shoemaker, and its business continues to grow.
In September, Nike reported a 25 percent increase in first-quarter profits. The company also reported a large increase in its U.S. orders, up 11 percent to $1.4 billion – reversing a declining trend in the national shoe market over the last several years.
Under Knight, Nike has been recruiting star athletes to promote its products, including Michael Jordan and Tiger Woods.
Nike has had its share of critics, including activists who brought attention to working conditions at the company’s foreign factories. Nike says it has improved conditions in the factories.
Perez, 57, has been president and chief executive of S.C. Johnson since 1996. He has worked for the consumer products company for 34 years.
“I am confident that as CEO of Nike Inc., Bill will lead Nike’s extraordinary team of people to create an even bigger and better global company,” Knight said in a statement.
He did not give a reason for relinquishing the titles. His resignation is effective Dec. 28.
Perez said he would stay true to Knight’s vision.
“You can feel the innovative spirit that Phil and his team inspires from product design, to retail to athlete partnerships. And I’m a strong believer in ‘Just Do It,’ ” Perez said in a statement.
Shares of Nike fell 99 cents to close at $85 on the New York Stock Exchange before the news was released. In after-hours trading, the shares fell another 50 cents.
Analysts said the move did not come as a complete surprise.
“It can be likened to when an Andy Grove steps aside at Intel or Bill Gates hands the reins to Steve Ballmer at Microsoft. It’s somewhat the passing of the torch. I think it’s a natural transition, though a rather significant one in the history of this company,” said Paul Swangard, managing director of the Warsaw Sports Marketing Center at the University of Oregon in Eugene.
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