Nike CEO Announces Policy Changes Following Sneaker Resale Scandal
John Donahoe addressed the circumstances surrounding Ann Hebert’s resignation.
Nike CEO John Donahoe has addressed the sneaker resale scandal involving former North American vice president and general manager Ann Hebert, who resigned last week. According to a recently published Bloomberg Business report, Hebert’s 19-year-old son used her credit card to purchase over $100,000 USD worth of limited-edition Nike sneakers to flip for profit. In response, the footwear giant will change its employee policies.
According to a report by Complex, which reviewed a recording of a recent Nike all-hands meeting, Donahoe hopes the company can rebuild customer trust following the scandal. “The fact of the matter is, this incident has sparked questions in some of our consumers about whether they can trust us, particularly around launch product,” he said, going on to announce that Nike’s updated policies will provide a clearer picture of what is and isn’t permissible for employees and their family members when it comes to product launches.
Nike’s President of Consumer and Marketplace Heidi O’Neill also attended the virtual meeting to explain the circumstances surrounding Hebert’s voluntary resignation. Nike reportedly conducted an internal review of the former VP’s ties to her son’s resale business and found that she “had not explicitly violated company policies,” O’Neill said.