Nike Inc ( NKE ) shares are jumping in Thursday’s after-hours session after the company announced a CEO transition.

What Happened: After the market close on Thursday, Nike ( NKE ) announced that longtime Nike ( NKE ) veteran Elliott Hill will become president and CEO of Nike ( NKE ), effective Oct. 14. Hill will also become a director on the board and a member of the executive committee.

The board and John Donahoe made the decision that Donahoe will retire from his role as president and CEO of Nike ( NKE ), effective Oct. 13. The exiting CEO will remain an advisor to the company through Jan. 31, 2025, to ensure a smooth transition.

“Given our needs for the future, the past performance of the business, and after conducting a thoughtful succession process, the Board concluded it was clear Elliott’s global expertise, leadership style, and deep understanding of our industry and partners, paired with his passion for sport, our brands, products, consumers, athletes, and employees, make him the right person to lead Nike’s next stage of growth,” said Mark Parker, executive chairman of Nike ( NKE ).

“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.”

Related Link: What’s Going On With Nike Stock?

Throughout his career at Nike ( NKE ), Hill held senior leadership positions across Europe and North America before retiring in 2020. Before his retirement, he was president of the company’s Consumer and Marketplace divisions, leading operations for Nike ( NKE ) and Jordan brands.

“For 32 years, I’ve had the privilege of working with the best in the industry, helping to shape our company into the magical place it is today,” Hill said.

“I’m eager to reconnect with the many employees and trusted partners I’ve worked with over the years, and just as excited to build new, impactful relationships that will move us ahead.”

NKE Price Action: Nike ( NKE ) shares closed Thursday up 0.099%. At publication time, the stock was up 10.01% at $89.09 in extended trading, per Benzinga Pro.