Hill, 60, is returning to Nike four years after retiring from the sneaker giant. According to the company, Hill spent decades in leadership positions in Europe and North America, serving as president of its consumer and marketplace business units and leading commercial and marketing operations for the Nike and Jordan brands. After the company announced that Donahoe would step down, share prices leapt as high as 11% in after-hours trading.

To welcome him back into the fold, Nike offered Hill a total compensation package valued at $27 million. That includes equity and cash awards valued at $7 million to make him whole for compensation he’s leaving behind to reunite with Nike, and total possible cash and stock awards valued at $20 million. His cash bonus, and a long-term equity incentive award valued at $15.5 million, are tied to performance metrics. 

“Personally, I have worked with Elliott for more than 30 years and I look forward to supporting him and his senior management team as they seize the opportunities ahead,” Nike executive chairman Mark Parker said in a statement. Parker said Hill’s return was part of a “thoughtful succession process” and Hill landed the gig due to his global expertise, leadership style, and passion for sports and athletes. 

John Donahoe, who has led Nike since 2020, will stay on until he steps down on Oct. 14. Donahoe will stick around as a full-time non-executive employee of the company until his Jan. 31, 2025 retirement date. His outstanding equity will vest during that time. Donahoe’s total compensation last year was valued at $29 million, according to Nike. He joined Nike as a board member in 2014 before being tapped as president and CEO in 2020. 

His performance leading the shoe giant has been mixed. In the most recent quarter, revenues were down 2% and the company projected sales declines for fiscal 2025. In June, the company’s market cap shed $24 billion.