Starbucks (SBUX.US) change of leadership sparks a chain reaction, Nike (NKE.US) may become a new target for aggressive investors

After news of Starbucks (SBUX.US) CEO's unexpected departure, Nike (NKE.US) is in focus as the next target for activist investors. Dave Powell, former CEO of Deckers, is the ideal candidate to succeed Nike CEO after retirement, according to a report from Gordon Haskett analyst Don Bilsen.

Bilsen noted that Nike's management changes will not be under external pressure, unlike Starbucks, because founder Phil Knight has a decisive influence on the board.

Nike announced on Tuesday (August 13th) that former Chipotle CEO Brian Nicholson will replace Lakshmi Narasimhan, who took over last year, as the new CEO. The change was made under pressure from activist investors Elliott Management, which owns a large stake in Starbucks and has been pushing for better performance and higher stock prices.

Moreover, UBS increased its stake in Nike by about 11 million shares in the second quarter, bringing its total holdings to 27 million shares. This move has raised eyebrows because UBS sometimes works with activist investors, including Elliott Management.

Pershing Square Capital Management, run by Bill Ackman, also disclosed a new stake in Nike. The firm added about 3 million shares of Nike worth $229m in the second quarter. Despite facing challenges with sales, Ackman has previously indicated he would work with management in a more low-key way.

The market is watching whether activist investors will get more involved in Nike. The company had its worst day ever in June when it forecast a year-over-year decline in revenue. The Pershing Square filing does not indicate whether it plans to overhaul Nike, and Nike's board remains controlled by co-founder Phil Knight.

It is noteworthy that US companies are currently experiencing a wave of CEO turnover. According to research firm Exechange, 191 CEOs of Russell 3000 index companies have left their positions this year, 74 of whom were fired or forced out. This is the highest number since 2017.