Coverage: Nike’s No. 2 exec resigns amid workplace complaints

Nike Inc. conducted a probe of questionable workplace behavior and announced the departure of a top executive who was considered a possible candidate to eventually become CEO.

Sara Germano of The Wall Street Joiurnal had the news:

The company said Trevor Edwards, Nike brand president and a potential successor to Chief Executive Mark Parker, will leave his position immediately and retire from the company in August.

In an internal memo to staff announcing the departure, Mr. Parker disclosed that the company in recent weeks had received reports of “behavior occurring within our organization that do not reflect our core values of inclusivity, respect and empowerment.”

“We’ve heard from strong and courageous employees,” he wrote, which was reviewed by The Wall Street Journal.

Mr. Parker didn’t specify the nature of the complaints or whether they involved Mr. Edwards or other executives. A Nike spokesman said there were no allegations against Mr. Edwards and declined to provide details.

Mr. Edwards didn’t immediately respond to a request for comment.

Matthew Townsend of Bloomberg News reported that Edwards was one of the highest-ranking African-Americans in the industry:

Edwards was one of a handful of executives in line to potentially move into the top job. The others include Eric Sprunk, chief operating officer, and Michael Spillane, who oversees design, products and merchandising. Another executive, Elliott Hill, was elevated to the role of overseeing the consumer and marketplace division as part of Thursday’s announcement.

Edwards, one of the highest-profile African-American executives in the industry, will remain an adviser to Parker during the transition. The Beaverton, Oregon-based company didn’t immediately respond to a request to speak with Edwards.

“I am committed to stay in my role as chairman, president and CEO beyond 2020,” Parker said in a statement. “Trevor has decided to retire.”

While Nike could look outside for its next CEO, that scenario isn’t likely. The company took that step once before, when it named William Perez as CEO in 2004 to replace co-founder Phil Knight. Perez lasted less than two years before Knight asked him to resign.

Charlie Carballo of Footwear News reported that Nike is reviewing its human resources processes:

An internal memo revealed that the company is conducting an investigation into misconduct in the workplace, in addition to a review of human resources practices and its system of reporting complaints.

“Over the past few weeks, we’ve become aware of reports of behavior occurring within our organization that do not reflect our core values of inclusivity, respect and empowerment at a time when we are accelerating our transition to the next stage of growth and advancing our culture. This disturbs and saddens me,” Parker said in the memo.

Nike has not alleged that Edwards or any of its executives have been accused of inappropriate behavior.

Last year, Parker said Nike accelerated its international growth and fostered momentum in domestic business under a new strategy focused on on digital, innovation and targeting consumers in key cities. “For the back half of the fiscal year, Nike innovation lineup is as strong as it’s ever been, and we’ll continue to actively shape retail through new differentiated experiences,” he explained in December.