Tim Cook’s custom-made sneakers from May’s iPad Pro launch – Image source: Apple via Hypebeast
Apple CEO Tim Cook has been on Nike’s board for almost 20 years, and now he has to help guide the major sports brand through some stormy weather.
Like Apple, Tim Cook has a long relationship with Nike. The Apple CEO has been on the Nike board of directors since 2005, the longest of any board member, and has helped the brand continue to thrive in his tenure.
At the end of 2024, Cook is continuing in his advisory role to the company chairman, Mark Parker, and co-founder, Phil Knight. However, the market is becoming problematic 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 for the iPad launch, Nike warned of financial issues.
Demand for its shoes was falling, triggered by competition from smaller new footwear brands eating into its market share. Nike also held a round of layoffs in the first half of the year.
In response, Cook advised on a change in how the company was managed, including bringing back Nike veteran Elliott Hill as CEO.
Cook will soon have to work with the rest of the board to approve a turnaround strategy by Hill. Especially since sales dropped 10% year-on-year in the last quarter.
Knight moves
Cook’s outside advisory role has helped him become a major voice for Nike. He has passed comment on everything from China to technology, as well as helping secure new executives.
His arrival on the board in 2005 was when he was still Apple COO, with the iPhone still in development. At the time, Knight welcomed him and called Cook “a great asset.”
‘Ted Lasso’ shirts sold at Apple Park, one of many Apple-Nike productions.
After Knight retired as chairman, Cook took on a more active role as the lead independent director. He currently holds the compensation committee chair.
Working with Cook, Knight referred to him as “a great collaborative leader” at a Stanford talk. Writing the Time 100 profile for Cook in 2021, he added that the Apple CEO is “able to think tactically and strategically in an industry far different from his own.”
During 2019’s poor financial performance and managerial sexual harassment allegations, John Donahoe was brought in as CEO, who also considered Cook an ally. Cook previously advised Donahoe on how to handle activist investors at eBay, and was considered a sounding board and mentor in return.
Cook advice
Aside from dealing with managerial matters, Cook also helped Nike in other ways. For example, employees at Nike’s world headquarters would get suggestions for retail store designs from Cook.
Cook also insisted that Nike should focus on core products and avoid saturating the market. This is in line with Apple’s long-time operating strategy.
The Apple CEO’s influence would also feed into Nike’s digital ecosystem revamp in China. Executives would frequently quote Cook in saying Nike follows the laws in regions it operates in.
As for the current CEO, Hill, he was supported by Cook. After spending over three decades at Nike before retiring, this follows Cook’s strategy of using executives who know and encourage the company’s culture.
With Cook continuing to ride high at Apple and having the favor of the Nike board, it’s likely he will be at the shoe maker for quite some time to come.