NEW YORK — Nike Inc. co-founder Philip Knight is stepping down as president and chief executive officer of the $12 billion athletic shoe and apparel company he made into a global brand.
He will be succeeded by William D. Perez, who has been president and ceo of S.C. Johnson & Son, the maker of consumer products such as Windex, Ziploc bags and Glad air freshener. The appointment is effective Dec. 28.
Knight, 66, will remain as Nike’s chairman and is likely to still be a presence in the company. The move, though not a surprise to analysts, is another sign that he is loosening his control of Nike, which he founded with former University of Oregon track coach Bill Bowerman in 1972.
“I think this is a natural step and something that has been in the works for a while,” said analyst Matt Powell of Princeton Retail Analysis. “He is stepping back at a time when Nike is at the top of its game; it’s a good time for this kind of transition.”
Nike has reported strong earnings and sales gains this year. In the quarter ending Aug. 31, earnings surged 25 percent to $328.1 million, as revenues rose 17.7 percent to $3.56 billion.
“Nike has enjoyed tremendous success as we have grown to become a $12 billion global company,” Knight said in a written statement. “As I’ve said many times over the past three years, Nike’s current management team, led by brand presidents Charlie Denson and Mark Parker, is the strongest it’s ever been. With Bill, we become even stronger.”
Knight was not available for further comment.
After Nike’s most recent earnings, Lehman Brothers analyst Robert Drbul wrote: “We strongly believe Nike has never been better managed from a strategic and financial perspective.”
Powell said Perez, 57, was a good choice to lead Nike because he has broad international experience, and Nike has been aggressively building its business outside the U.S.
Perez, who joined privately held S.C. Johnson in 1970 and spent the last 34 years there, has served in several positions, including general manager of S.C. Johnson Spain and Iberia, vice president and regional director of consumer products in Latin America and vice president of the U.S. Home Care business. The company is based in Racine, Wis.
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Raised in Colombia in South America, Perez is not a total stranger to the fashion business. He was a board member at May Department Stores until May. He is also on the board of the Kellogg Co., the cereal maker.
Perez indicated in a written statement that he would retain the company’s direction. “I was drawn to this company because the Nike brand perpetually stays current, making it one of the best managed on the globe,’’ he said. “And I’m a strong believer in ‘Just Do It,’” which is Nike’s slogan.
Perez is an avid runner and has participated in 11 marathons, Nike said. In addition to being president and ceo, he will be a director on Nike’s executive board.
Knight, who started by selling track shoes out of the trunk of his car, has overseen and guided Nike’s growth into the world’s largest athletic company, selling a broad range of categories and hard goods. He was a pioneer in using athletes such as Michael Jordan to promote Nike products.
In recent years, Nike has branched into new arenas with the acquisitions of Converse, Cole Haan and Hurley. Earlier this year, Nike acquired Starter, a mass athletic brand, heralding a new distribution strategy.
The company has come under fire for working conditions at its overseas factories, but has worked to improve its standards in recent years.
While Nike is best known for footwear, apparel has become a fast-growing category, and U.S. apparel sales were $391.3 million in the recent quarter. Nike employs 24,000 people in about 200 countries.
Knight’s total 2003 compensation was $3.7 million, of which $2.3 million was in bonus pay. He also owns 12 percent of the company’s shares.
The news was announced after the market closed. Nike’s shares fell 99 cents to $85 Thursday on the New York Stock Exchange.