June 23 (Reuters) – Nike on Tuesday named Pfizer executive David Denton as CFO, replacing Matthew Friend, as the footwear maker struggles through a turnaround amid supply chain issues and stiff competition.
Nike has been working through elevated inventory levels and weak demand in key markets such as North America and China, with top executives, including Friend and CEO Elliott Hill, saying in March that its turnaround was slower than anticipated.
Hill took over the top job in October 2024 and has pushed for a return to athletic roots in terms of style, while rebuilding its partnerships with wholesalers.
The turnaround has led to a company-wide management shakeup, including in divisions such as marketing and product innovation.
Denton, 60, joins Nike from Pfizer, where he has been the finance chief since May 2022. His appointment is effective August 17. The U.S. drugmaker announced Denton’s departure on June 18.
“There has been massive house cleaning at Nike since Hill came in as CEO. The many executive changes reflect Nike’s struggles over the past few years and the slow pace of the turnaround,” Morningstar analyst David Swartz said.
While a change at CFO was disappointing, it doesn’t necessarily mean Nike’s business was getting worse, Swartz added.
Nike shares were up about 1% in extended trading.
Denton was CFO at home improvement retailer Lowe’s before moving to Pfizer and had served in a similar role at CVS Health during his two-decade-long stint with the company.
Denton’s compensation will include an annual base salary of $1.45 million, a target annual bonus of 120% of base salary and an annual target long-term incentive award of $11.5 million, Nike said in a regulatory filing.
Friend joined Nike in 2009 and took over the CFO role 11 years later after leading the company’s various divisions.
Nike also said its quarterly results, due on June 30, will include a benefit from tariff refunds. Nike has said it paid about $1 billion in tariffs on imports into the U.S.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Anil D’Silva)
