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4 More Nike Executives Are Out Amid Inquiry Into Harassment Allegations 5 More Nike Executives Are Out Amid Inquiry Into Harassment Allegations
(about 2 hours later)
A sweeping investigation into workplace behavior at Nike has resulted in the departure of four more top-level executives, raising to 10 the number of senior managers to leave the company as it continues to overhaul its upper ranks amid widespread allegations of harassment and discrimination against female employees. A sweeping investigation into workplace behavior at Nike has resulted in the departures of five more top-level executives, raising to 11 the number of senior managers to leave the company as it continues to overhaul its upper ranks amid widespread allegations of harassment and discrimination against female employees.
Together, the departing executives oversee some of the most important business categories and highest-profile departments at the world’s largest sports footwear and apparel company. Together, the departing executives oversee some of the most important business categories and high-profile departments at the world’s largest sports footwear and apparel company.
The four additional people who have either left the company already or will depart soon, Nike confirmed on Tuesday, are Steve Lesnard, the head of running in North America; Helen Kim, who oversaw Eastern North America; Simon Pestridge, a head of marketing for the performance categories; and Tommy Kain, Nike’s director of sports marketing. Nike confirmed on Tuesday morning that four managers were leaving: Steve Lesnard, the head of running in North America; Helen Kim, who oversaw Eastern North America; Simon Pestridge, a head of marketing for the company’s performance categories; and Tommy Kain, Nike’s director of sports marketing.
Later in the day, a Nike spokeswoman also confirmed the departure of Ibrahem Hasan, a senior creative director who former employees said had been involved with the company’s marketing campaigns with the British female singer FKA Twigs.
None of the five departing executives responded immediately to requests for comment.
In a companywide address last week, Mark Parker, Nike’s chief executive, apologized to employees and said that departures related to the company’s broad investigation into workplace behavior would be completed by this week.In a companywide address last week, Mark Parker, Nike’s chief executive, apologized to employees and said that departures related to the company’s broad investigation into workplace behavior would be completed by this week.
Inside Nike, the new departures may provide more reassurance to employees seeking signs that Mr. Parker is trying to address the workplace problems that have plagued the company in recent years. But for Wall Street, the internal turmoil could be worrisome and prompt questions about whether Nike will have the leaders it needs in place to execute its aggressive business strategy. Six executives had already left the company or said they would leave in connection with the inquiry. That group included Trevor Edwards, president of the Nike brand and a potential successor to Mr. Parker; and Jayme Martin, who oversaw many of Nike’s global businesses. Nike’s head of diversity and inclusion and a head of footwear were among the other managers to part ways with the company.
Six top executives have previously left the company or have said they would leave in connection with the investigation. In March, Nike announced the departures of Trevor Edwards, the president of the Nike brand and a potential successor to Mr. Parker; and Jayme Martin, who oversaw many of Nike’s global businesses. Other managers who subsequently left included the head of diversity and inclusion and a head of footwear. Those departures came after a group of female Nike employees began an informal survey that sought input on sexual harassment and discrimination against women. The survey was presented to Mr. Parker on March 5. Ten days later, the executive shake-up began with the announcement that Mr. Edwards was resigning.
The latest departures come amid a rash of rumors and speculation that more managerial changes are in store at the company’s Beaverton, Ore., campus in the wake of a revolt, led by women, that is shaking up Nike’s executive ranks. Inside Nike, the latest departures may provide more reassurance to employees seeking signs that Mr. Parker is trying to address the workplace problems that have plagued the company in recent years. In his address to employees, Mr. Parker said that Nike was taking steps to become a more collaborative workplace where all voices were heard, and would be more open about efforts to improve the diversity of its work force and its progress toward meeting equal pay goals.
Earlier this year, a group of women at the company began an informal survey that sought input on discrimination and sexual harassment at the company. The survey was presented to Mr. Parker on March 5, and 10 days later, the executive shake-up began with the announcement that Mr. Edwards was resigning. But the exodus of so many top executives could also heighten scrutiny of Mr. Parker, 62, who worked closely with many of those who are leaving. So far, Nike’s board of directors has not made any comments on the management overhaul or whether it still has confidence in Mr. Parker’s leadership.
The moves come a little more than a week after The New York Times, using interviews with more than 50 current and former Nike employees, reported about women’s complaints of being marginalized, harassed and thwarted in their careers at the company, and about indignities that included humiliating visits to strip clubs and unwanted kisses. Many of those interviewed said when they took their grievances to human resources, they seemed to not be taken seriously. For Wall Street, the turmoil could be worrisome and prompt questions about whether Nike will have the leaders it needs in place to execute its aggressive business strategy.
Mr. Parker, who has been chief executive since 2006, has set a goal of increasing Nike’s revenue from around $36 billion to $50 billion by 2022. Achieving that will involve transforming the company’s business by shifting away, in part, from its traditional sports-athlete focus to the women’s and so-called athleisure markets. It also plans to sell more of its products in its own retail stores and through its website.
“Nike has a deep bench and has a history of moving people around the different businesses,” said Sam Poser, an analyst with Susquehanna Financial Group. “But we haven’t before seen the exits of people like this who have been there for a very, very long time, and the question is, are the people who are replacing them ready to take on these new jobs?”
Nike shares were down 1.21 percent, to $68.50, in trading on Tuesday afternoon.
The latest moves come a little more than a week after The New York Times, using interviews with more than 50 current and former Nike employees, reported on women’s complaints of being marginalized, harassed and thwarted in their careers at the company, and about indignities that included humiliating visits to strip clubs and unwanted kisses. Many of those interviewed said when they took their grievances to human resources, they did not seem to be taken seriously.
Since then, current employees have said, Nike’s Beaverton, Ore., campus has been awash in rumors and speculation that more managerial changes were in the works. On Tuesday, those rumors turned to fact.