Nike Co-Founder Quits as President, CEO

Nike co-founder Philip H. Knight, who began his career at the company by selling track shoes from the back of a station wagon, today resigned as president and chief executive officer of the giant athletic shoemaker.

Knight, 66, will remain with the apparel company as chairman.

William D. Perez, 57, head of consumer products maker S.C. Johnson & Son, will succeed Knight as president and CEO of the Beaverton, Ore.-based company. The management change takes place Dec. 28.

Nike directors, at Knight’s request, began looking for a successor in early 2003.

“This begins an exciting new chapter in Nike’s ongoing business evolution,” said Knight in a statement. “In the near term, I will focus my efforts on ensuring an effective transition and on evolving into my role as an active chairman. I also plan to maintain my status as the world’s number one sports fan.”

Under Knight, Nike capitalized on the fitness boom of the 1970s and 1980s and the popularity of professional sports to build a global giant with annual revenues of more than $12 billion and a workforce of 24,000 people. It’s savvy marketing has made Nike, along with the company’s “swoosh” logo and “Just Do It” slogan, among the most recognized corporate brands.

However, in recent years, Nike’s reputation has been tarnished by allegations that it has exploited workers at its overseas factories, many run by contractors, by paying extremely low wages and permitting substandard working conditions.

Perez, a 34-year veteran of S.C. Johnson and an avid runner, has held jobs in sales, marketing, brand management and general management before becoming president and CEO in 1996 of the consumer products company, which makes Pledge, Ziploc bags, Raid and other products.

“I was drawn to this company because the Nike brand perpetually stays current, making it one of the best managed on the globe,” Perez said. “I look forward to working with a terrific team of people and helping build a future that will drive greater value for our shareowners, employees, consumers and communities.”

In 1962, Knight and University of Oregon track coach Bill Bowerman founded Blue Ribbon Sports, which was renamed Nike in 1972.