Nike’s top pick for its next CEO resigns
Women employees conducted an informal workplace culture survey
The #MeToo movement hit sportswear giant Nike (NKE +1.66%) sending two of its top executives, Trevor Edwards and Jayme Martin running from the company. This comes in the wake of reports they protected male employees who demeaned women in the U.S. and individuals from other countries.
Why This Matters: Here’s another example of women taking the lead in rooting out a troubling culture across Corporate America. When CEO Mark Parker found out about a women-led informal survey about inappropriate behavior at the company, he launched a formal investigation which led to Martin and Edwards resignation.
Nike is losing two top executives at a time when the company is fighting off a surging Adidas brand that reported a 27% increase in its North America sales in its latest quarter. Compare that to Nike’s expected 1.9% increase in sales in the same region. Edwards, who served as president of the Nike brand, oversaw Nike’s effort to turn around its North America performance. Now the company will have to push harder to keep the turnaround on track.
Nike joins the ranks of competitor Lululemon Athletica (LULU +1.49%), the L.A. Times, Ford (F -0.18%), and Wynn Resorts (WYNN +1.42%) as companies dealing with inappropriate behavior involving high-profile executives this year.
Situational Awareness: It’s odd that Trevor Edwards as a senior executive would see the need to resign from his position and the CEO remain untouched by this scandal. Parker stated in a memo to employees last week he will remain at Nike until 2020. Look out to see if more details emerge that bring into question whether Parker remains at the helm of the company that long.
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