University of Oregon graduate and Nike co-founder Phil Knight announced on June 30 his plans to step down as chairman of the company in a press release.
Knight also announced he has started Swoosh, a limited liability company that would hold a majority of his Nike Class A Common Stock shares —roughly 15 percent of the company’s total shares.
“For me, Nike has always been more than just a company – it has been my life’s passion,” Knight said. “Over the years, I’ve spent a great deal of time considering how I might someday evolve my ownership and leadership of Nike. Today, we have taken a number of important steps that will continue to promote Nike’s long-term growth.”
A board of directors established by Knight will determine how the shares are going to be used moving forward. Knight, 77, will hold two of the five votes assigned to the board to ensure his “long-term stability in the ownership and governance of the company.”
“Swoosh will itself have a governance structure that is designed to make thoughtful and forward-looking decisions with respect to the ongoing voting and management of those shares,” Knight said. “I believe this structure will maintain Nike’s strong corporate governance, which has focused our management on serving the consumer and pursuing profitable, long-term growth.”
Nike said CEO Mark Parker, a former Nike shoe designer, will replace Knight as company chairman in 2016 on Knight’s recommendation. Phil’s son, Travis Knight, a movie executive and former rapper, will join Nike’s board of directors.
“I have long felt a great responsibility to provide clarity and certainty for the long-term governance and leadership of Nike and for my ultimate transition as chairman,” Phil said. “I have worked closely with the Nike board in developing this plan and in identifying the most qualified person to serve as my successor in this role.”
Phil said Parker has been “an outstanding CEO for the past nine years.”
“[Parker] has demonstrated time and again his love for this company and his clear vision for capturing the tremendous potential Nike has to innovate, inspire and drive growth,” Phil said. “For myself, I intend to continue to work with Nike and look forward to contributing to its future well after my chairmanship ends.”
Parker also issued a statement in the release:
“Phil founded Nike to serve athletes,” Parker said. “That vision and inspiration continues to drive our success today around the world. I have been privileged to work with Phil for over 35 years, and Nike’s exceptional management team and I are committed to building on Phil’s vision to drive the next era of growth for Nike.”
Phil ran track for the Ducks under coach Bill Bowerman, with whom he co-founded Nike. A sports reporter for the Daily Emerald, he earned a journalism degree and graduated a brother of Phi Gamma Delta fraternity.
Phil and his wife, Penny, have contributed more than $300 million to the university. They funded the renovations of the Knight Library and Autzen Stadium, paid for the Jaqua Academic Center for student-athletes and 145,000 square-foot Hatfield-Dowlin Complex for the football team, and helped finance structures such as the William W. Knight Law Center and Matthew Knight Arena.
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