Tim Cook's custom sneakers from the iPad Pro unveiling in May – Image source: Apple via Hypebeast
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Apple CEO Tim Cook has been on Nike's board of directors for nearly 20 years, and now he’s tasked with helping steer a major sports brand through stormy weather.
Like Apple, Tim Cook has a long-standing relationship with Nike. The Apple CEO has been on Nike’s board since 2005, the longest-serving member of any board member, and has helped the brand continue to thrive during his tenure.
Cook will continue his advisory role to chairman Mark Parker and co-founder Phil Knight through late 2024. However, the market is becoming challenging for Nike.
In a profile of Cook’s work with Nike, Bloomberg writes that Nike is struggling in 2024. In March, two months before Cook wore special Nike sneakers to launch the iPad, Nike warned of financial troubles.
Demand for its shoes was falling, driven by competition from smaller, newer shoe brands eating into its market share. Nike also made a series of layoffs in the first half of the year.
In response, Cook recommended changes to the way the company was run, including bringing back Nike veteran Elliott Hill as CEO.
Cook will soon have to work with the rest of the board to approve Hill’s turnaround strategy, especially as sales fell 10% year over year in the most recent quarter.
Knight’s Moves
Cook’s role as an outside adviser has helped him become the voice of Nike, providing commentary on everything from China to technology and helping to recruit new leaders.
His arrival on the board in 2005 was when he was still Apple's chief operating officer and the iPhone was still in development. At the time, Knight welcomed him and called Cook “a great asset.”
Ted Lasso T-shirts were sold at Apple Park, one of many Apple-Nike facilities.
After Knight stepped down as chairman, Cook took on a more active role as lead independent director. He currently serves as chairman of the compensation committee.
Working with Cook, Knight called him a “great collaborative leader” in a speech at Stanford. Writing a 2021 Time 100 profile of Cook, he added that the Apple CEO “is able to think tactically and strategically in an industry very different from his own.”
Amid poor financial performance in 2019 and allegations of sexual harassment by executives, John Donahoe was brought in as CEO, and he also considered Cook an ally. Cook had previously advised Donahoe on how to handle activist investors at eBay and was seen as a sounding board and mentor in return.
Cook's Advice
In addition to handling management issues, Cook has also helped Nike in other ways. For example, employees at Nike's global headquarters have received suggestions from Cook on retail store designs.
Cook has also pushed for Nike to focus on core products and avoid market saturation, which is in line with Apple's long-term operating strategy.
The Apple CEO's influence will also help revamp Nike's digital ecosystem in China. Executives have often cited Cook when they say Nike complies with laws in the regions where it operates.
As for current CEO Hill, Cook has been supportive. Having spent more than three decades at Nike before retiring, Cook has a strategy of using executives who know and support the company's culture.
With Cook continuing to hold senior positions at Apple and enjoying the good graces of Nike's board, it's likely he'll remain with the shoe company for a long time to come.
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