Nike's CEO Perez Resigns

Nike Inc. CEO William Perez has resigned following disagreements with founder and chairman Philip Knight over how to lead the world's largest athletic shoe company, Nike said on Monday.

Nike brand co-President Mark Parker will take over from Perez, who steps down after just 13 months with the company. As a result, Charlie Denson the other co-president of the Nike brand became the sole president of the Nike brand.

Nike is still enjoying robust demand within the United States for its shoes and apparel, but investors and analysts have shown concern over increased competition from the pending merger between Adidas-Salomon and Reebok International Ltd and challenging market conditions in Europe and Japan.

Nike, based Beaverton, Oregon, said its board and Perez mutually agreed to end his relationship.

"Succession at any company is challenging, and unfortunately the expectations that Bill and I and others had when he joined the company a year ago didn't play out as we had hoped. I want to personally thank Bill for his dedication and commitment over the past year."

Perez joined Nike in December 2004 after a long career with consumer products company S.C. Johnson & Sons, and was expected to be instrumental in taking the Nike brand further into international markets, as well as growing a stable of brands beyond Nike. However, worries over his lack of experience in the athletic shoe business have trailed him

"I have great respect for the Nike brand, the company and the
Board," Perez said. "Nike is an incredible organization with
tremendous growth opportunities. However, Phil and I weren't entirely aligned on some aspects of how to best lead the company's long-term growth. It became obvious to me that the long-term interests of the company would be best served by my resignation."

Regarding the promotion of Mark Parker, Knight said, "Mark has a proven track record in driving creativity, innovation and growth. He's an experienced, talented executive
and has played an instrumental role in building our business and making the Nike brand as strong as it is today. Mark is the right person to drive our business forward."

Parker, 50, joined Nike in 1979 and and has served in various
management capacities in product design, development, marketing and brand management. Nike said he is widely recognized as the product visionary for the Nike Air franchise and many other industry-leading product
design and performance innovations. Prior to heading the Nike brand, Parker ran the company's multibillion dollar footwear and apparel businesses.

"I've spent my life building the Nike brand, and I'm excited to lead one of the world's most dynamic organizations," said Parker, who will also succeed Perez on the company's board. "I
am committed to continue delivering profitable growth for our
shareholders, creating distinctive product innovation and compelling brand connections for consumers, and building strong relationships with our retail partners. We have a strong management team in place that I will continue to develop, and I have tremendous confidence in our ability to continue growing the Nike, Inc. portfolio and delivering long-term value to shareholders."

Meanwhile, Denson, 49, the new president of the Nike brand, also joined Nike in 1979, starting as an assistant manager in one of Nike's original retail stores in Portland, Oregon. He has held a variety of senior general management roles including leadership of Nike's U.S. and European businesses.