Nike's CEO switch underscores the allure and risks of boomerang executives.
In this week's Careers Newsletter, read the latest Workplace & Talent reporting: Nike's CEO Switch Underscores the Allure and Risks of Boomerang Executives: Elliott Hill, the newly named chief executive officer of Nike Inc., came out of retirement last week to help the beleaguered brand regain its footing. He previously spent 31 years at the sneaker and sports apparel company, climbing the ranks from sales intern in 1988 to consumer division president before retiring in 2020. Hill's return is part of a rich history of big companies — Starbucks Corp. and UBS Group AG among them — calling on veteran executives to reestablish equilibrium in times of crisis. The most famous example is Steve Jobs, who returned to Apple Inc. 12 years after he was ousted as CEO in 1985. His return laid the groundwork for the formerly flagging tech brand to become one of the world's most valuable companies. Jobs' wildly successful encore run at Apple set a tantalising precedent for businesses at a leadership crossroads. In the years since, Procter & Gamble, JCPenney Co., Twitter Inc., and Walt Disney Co. all reinstalled proven CEOs when their successors struggled. However, most boomerang executives don't bring blockbuster results. A 2019 study examining 25 years of public company data found that annual stock performance was 10 percent worse under returning CEOs than their non-repeat counterparts. The findings were consistent even when comparing the boomerangers to first-time CEOs hired into crisis situations. → READ MORE | |
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