Who is William D. Perez and what is his background?

William D. Perez, age 57, is the newly appointed President and Chief Executive Officer of NIKE, Inc. He previously served as President and Chief Executive Officer of S. C. Johnson & Son, Inc., a global consumer products company, since 1996. Mr. Perez joined S. C. Johnson in 1970 and has held various senior roles in marketing, regional, and global management.

What is the role of Philip H. Knight moving forward?

Philip H. Knight, co-founder and previous Chairman and Chief Executive Officer, will continue as Chairman of the Board. He will remain active in this capacity, transitioning from day-to-day operational leadership.

What are the key terms of William D. Perez's employment agreement?

Effective December 28, 2004, Mr. Perez will receive an initial stock option for 200,000 shares and a restricted stock bonus of 100,000 shares, both vesting over three years. His initial annual salary is $1,350,000, with target bonuses of 125% of salary under the Performance Sharing Plan. He is also eligible for annual option grants, restricted stock awards, and long-term incentive program awards.

What governance changes are being made?

NIKE's Board of Directors has approved amendments to the Bylaws to clearly separate and define the respective responsibilities of the Chairman of the Board and the Chief Executive Officer. This change reflects a formalization of distinct leadership roles.

NKE 8-K: Leadership Changes & Corporate Changes

Summary

NIKE, Inc. has announced a significant leadership transition with the appointment of William D. Perez as President and Chief Executive Officer, effective December 28, 2004. This marks a shift in the operational leadership of the company, with co-founder Philip H. Knight transitioning to Chairman of the Board, remaining active in his advisory role. Mr. Perez brings extensive experience from S. C. Johnson & Son, Inc., where he held senior leadership positions for over three decades. This leadership change is accompanied by amendments to NIKE's bylaws to formally separate the roles of Chairman and CEO, underscoring a governance evolution. Investors should note the comprehensive compensation package for Mr. Perez, including significant stock options and restricted stock awards, signaling the company's commitment to retaining and incentivizing its new top executive. The details of his employment agreement, including severance provisions, have been disclosed.

Key Highlights

1William D. Perez appointed President and CEO, effective December 28, 2004.
2Philip H. Knight transitions from CEO to Chairman of the Board, remaining active.
3Bylaws amended to formally separate the roles of Chairman and CEO.
4William D. Perez has over 30 years of experience at S. C. Johnson & Son, Inc., most recently as President and CEO.
5Perez's compensation package includes initial grants of 200,000 stock options and 100,000 restricted shares, vesting over three years.
6He will receive an annual salary of $1,350,000, with substantial target bonuses and long-term incentive awards.
7Severance provisions are detailed in the employment agreement, offering protection in case of termination under specific circumstances.

NIKE, Inc. 8-K Report, Executive Changes (Nov 18, 2004)

Summary

Key Highlights

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