Nike on Thursday named a company veteran, Elliott Hill, to be its next CEO, an announcement that immediately boosted the company’s flagging stock price and elicited cheers from insiders.

Hill, 60, will succeed embattled CEO John Donahoe on Oct. 14. The company also named Hill a member of the board. Donahoe will remain as an adviser to the company until Jan. 31.

“I am excited to welcome Elliott back to Nike,” Executive Chairman Mark Parker said in a news release, noting Hill’s “global expertise, leadership style, and deep understanding of our industry and partners, paired with his passion for sport, our brands, products, consumers, athletes, and employees.”

Hill spent 32 years at Nike, overseeing sales before he left the company in 2020. His experience may now be central to the turnaround of a company that’s expected to report a sales decrease this fiscal year.

“Nike has always been a core part of who I am, and I’m ready to help lead it to an even brighter future,” Hill said in the press release. “For 32 years, I’ve had the privilege of working with the best in the industry, helping to shape our company into the magical place it is today. I’m eager to reconnect with the many employees and trusted partners I’ve worked with over the years, and just as excited to build new, impactful relationships that will move us ahead.”

Nike also recently brought back Tom Peddie, another move geared towards improving sales.

Donahoe’s tenure was marked by hitting a $50 billion sales goal, but also overseeing the company during a time of poor employee morale and betting too heavily on selling directly to customers, rather than through third-party retailers.

Hill’s return — coming in an otherwise grim year, as Nike moves to cuts $2 billion in costs and after two rounds of layoffs — was well received by insiders given his previous time at the company. He was described by current and former employees as an authentic leader who understands the company’s roots in sports.

A former executive said Hill was well-regarded during his earlier stint at Nike, which concluded with him serving as Nike’s president of consumer and marketplace.

“Elliott is a people-driven leader, focused on building culture and a positive employee experience first,” said Melanie Strong, a former Nike vice president who now works as a venture capitalist. “He knows that business results, innovation and growth can only happen when employees feel valued. I think this is a great move for the company.”

Hill’s hiring announcement didn’t include any updates on Nike’s business plans. The company will next announce quarterly earnings on Oct. 1. It will have an investor day in November, the type of event at which it has historically announced new strategies.

In recent months, Donahoe announced a turnaround plan that includes focusing on sports, getting new products to market quicker, “bigger, bolder storytelling” and continuing to rebuild Nike’s wholesale business. At an annual meeting last week, Donahoe said the plan is showing “early momentum.”

In the press release, Donahoe said he recognized it was “time to make a leadership change.” He added Hill is the “right person.”

“It’s been an honor and privilege to be part of this incredible company, and I’ll always value my time at Nike and the opportunity to lead the organization,” Donahoe said.

Hill’s compensation package, filed with the U.S. Securities and Exchange Commission, includes a $1.5 million annual salary, a maximum annual bonus of $3 million. Additionally, Nike promised Hill long-term bonuses structured to pay him $15.5 million annually if the company performs as it expects.