Nike CEO Mark Parker Will Be Replaced By ServiceNow's John Donahoe Next Year

The sportswear industry is seeing a massive executive shakeup.

The same day Under Armour Inc UAA founder Kevin Plank announced he will step down as CEO, Nike Inc's NKE chairman announced his plan to step down from the same position.

Nike CEO Mark Parker will be replaced in 2020 by ServiceNow Inc NOW CEO and current Nike board member John Donahoe. Parker will still hold his position as Executive Chairman.

See Also: Under Armour Founder Kevin Plank To Step Down As CEO

“He is absolutely the right leader for Nike and what we are looking for," Parker told CNBC on Tuesday afternoon. "He is a proven CEO. He is no stranger to Nike and we feel he is the best choice to usher in this next wave for Nike.”

Parker said digital transformation is a key part of Nike strategy and says Donahoe is the right choice.

Parker has served as Nike’s top executive since 2006.

Nike's stock closed Tuesday's session at $95.60 per share and traded up about in the 1% after-hours session.