The company is clearly broken. Nothing is working together, and the strategy isn’t driving growth. That starts at the top. So, how much longer does EH have before being replaced?
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@jh Anonymous: Thank you for stating the future, textbook economics. Even with my C average in economics I can see this reality. This company must reduce expenses and improve margin. This company spends so much money chasing competitors and being overly frivolous with the checkbook. And with way too many employees. I bet a bigger round of layoffs soon and maybe a return to the company size of 10 years ago or earlier. I am certain my tenure is ending soon too.
He'll stay bc the BoD can't take any more humiliation.
Kinda miss MP slunking around campus in his dark suit. At least you sorta knew where things stood then.
@jh this is probably the most likely reality of Nike’s future
Can’t fire EH or he’ll cry and say he loves this place so much
The cost savings discussed are already happening. Cut wellness week, lower merit, close distribution centers and cut heads. Expect much more of if revenue does not grow. Profit will grow one way or another.
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I have said this before but in all likelihood Nike has maxed out its market potential and must now shrink to reflect reality and bring operational overhead more in line with reduced expectations. Nike still collects billions of dollars in sales every year...just not at the rate that reflects unrealistic, never-ending growth which was pie in the sky dreaming to begin with. I think what's not being said publicly is that the definition of an EH "turnaround" isn't going to be strictly based on increased sales...but instead increased margins and therefore profit made possible through further (massive) headcount reduction.
EH will be considered "successful" by shareholders and institutional investors (and probably the board) if he can cut headcount and capex by a third (or more) and maintain the existing sales numbers (growth won't be as critical in that scenario). It may have been plan A to hope for actual revenue growth without slashing human capital, but I would assume Plan B was also considered a viable path forward.
I am not trying to catastrophize and I don't enjoy that potential reality...I am assuming I'll be eliminated before the end of the year. It's just basic economics and capitalism. CEOs and boards are very much copycats and they see how other CEOs have purged massive numbers of employees and managed to maintain or even improve their company numbers over the last three years. EH may never have been intended to act as the employee savior...but he may yet be the shareholder's savior.
How long have you and I got is the more important question to answer. This ship is taking on water fast.
They are prepping VA to take on the reins as the FIRST INDIAN CEO.
@df No in any business the board should be looking for a real athletic and sport leader, then exercise EH options out. Or sell the company. PHK and his memory investment at Stanford will not keep the lights on. And PHK has an obvious ailment should not have board voting rights. And what is MP doing?
Targeting employees simply based on their work location. We lost a lot of good people who actually got sh-t done regardless of where they worked from. All while keeping the dead weight just because they live nearby.
He’s part of the problem. You can put a massive problem in front of him and he won’t do anything to right the wrong. He’s turned a blind eye to the toxic culture that can’t innovate because it’s paralyzed by low class, unethical leaders. He’s blind at this point! Give him his papers and let him walk. The company will stay toxic and status quo.
Better to go with the Devil you know versus the Devil you don’t know.
cycling CEO's too quickly is going to be a bigger market signal for things to drop than keeping a flailing CEO. Unless they have a banger replacement, it's better to just let him sit and just neuter his decision making abilities from the board
Replaced by whom? External, internal... Any serious ideas? The company is still reeling and not recovered from the disaster that was JD. And I don't know of anyone who's competent to take the reins inside Nike. Not VA and definitely not CS, god help us.
I'd rather have someone who's atleast earnest like EH than a total narcissist and out of touch leader.
Hopefully not much longer. Dude is floundering HARD
Some time after Q1 earnings
Probably after 2 or 3 more massive reorgs to a new strategy.