2nd exec is out at Nike
Published 12:00 am Saturday, March 17, 2018
Nike confirmed the departure of a second senior executive within 24 hours Friday, an apparent shake-up after the global sportswear giant acknowledged it had received internal complaints about workplace behavior.
Jayme Martin, a vice president and general manager of global categories, has left the company, a spokesman confirmed Friday. His departure follows the exit of Trevor Edwards, a top official whose retirement was announced Thursday.
Greg Rossiter, a Nike spokesman, declined to comment on the reasons for Martin’s departure, or when he had left.
Martin, who joined Nike in the late 1990s, reported to Edwards, who was seen as a potential successor to Nike’s chief executive, Mark Parker. In a statement Thursday that seemed aimed at providing a note of stability, the company said Parker would remain in his role at Nike past 2020.
The Wall Street Journal first reported Martin’s departure Friday.
“Abrupt changes of this nature are rarely good in the short term,” said Sam Poser, an analyst with Susquehanna Financial Group, who added that Nike was known for developing and training employees.
“These are the orchestra conductors at Nike,” he said of Edwards and Martin. “One individual isn’t going to make or break it, generally, but it’s just that this was sudden.”
In an internal memo to staff Thursday, Parker wrote that the company had received complaints of “conduct inconsistent with Nike’s core values and against our code of conduct.”
“Over the past few weeks, we’ve become aware of reports of behavior occurring within our organization that do not reflect our core values of inclusivity, respect and empowerment at a time when we are accelerating our transition to the next stage of growth and advancing our culture,” Parker wrote. “This disturbs and saddens me.”
Edwards, who joined Nike in 1992 and eventually rose to become the company’s brand president, will depart in August. He will serve as an adviser to Parker until then.
Parker’s memo did not characterize what type of complaints Nike had received, or against whom. But a national reckoning over sexual harassment has put pressure on companies in a wide range of industries to seriously address accusations of misconduct against even their highest-ranking officials.
Investors were unfazed. Nike’s stock was little changed in early trading on Friday morning, trading up 0.1 percent at $66.44. They had climbed 6.1 percent this year through Thursday’s close, a sign that shareholders are hopeful its comeback efforts are taking hold.
Parker will turn 65 in 2020 and has been in the CEO position for more than a decade. That’s spurred speculation that a changing of the guard was being planned by that year.
Edwards was one of a handful of executives in line to potentially move into the top job. The others include Eric Sprunk, chief operating officer, and Michael Spillane, who oversees design, products and merchandising. Another executive, Elliott Hill, was elevated to the role of overseeing the consumer and marketplace division as part of Thursday’s announcement.
While Nike could look outside for its next CEO, that scenario isn’t likely. The company took that step once before, when it named William Perez as CEO in 2004 to replace co-founder Phil Knight. Perez lasted less than two years before Knight asked him to resign.
The company then named Parker, a Nike lifer, as his replacement.
— Bloomburg contributed to this report.