Why Nike and Disney Are Bringing CEOs Out of Retirement: A Closer Look at Executive Talent

When Nike recently hired Elliott Hill as their new CEO, the move raised some eyebrows. Hill had already retired after 30 years with the company, having run a major division before stepping down. Similarly, a few years ago, Disney made headlines when they brought their former CEO, Bob Iger, out of retirement after his successor didn’t meet the company’s expectations. In both cases, these companies didn’t promote an internal executive or bring in fresh blood from outside. Instead, they chose to tap into the wisdom and experience of seasoned leaders who had already called it a day. So, why did they make this choice?

It’s easy to think that companies like Nike and Disney, with their deep benches of talented executives, would have a natural successor ready to step up. After all, these global giants have an army of experienced leaders managing massive parts of their business operations. And with their iconic brands and enormous pay packages, you’d think they could recruit the best talent from the outside. Yet, these companies chose to reach back into the past instead of moving forward with new leadership. Why?

The media often focuses on excessive CEO pay, and in many cases, it’s hard to argue against the notion that executive compensation can get out of hand, especially when it doesn’t align with corporate performance. But the recent decisions by Nike and Disney to bring their former CEOs out of retirement shine a light on something deeper: the scarcity of talent capable of running companies at this scale. Just as there are only a handful of athletes who can play at the highest levels of professional sports, there are very few executives who can successfully steer a global giant like Nike or Disney.

Running a company like Nike or Disney isn’t just about managing people or overseeing operations. It’s about understanding the complexities of a multinational, multi-billion-dollar organization, balancing the demands of investors, customers, and employees, all while preserving the company’s brand and navigating the shifting tides of global markets. CEOs of this caliber aren’t just promoted; they are groomed, developed, and tested over decades. Even then, not everyone has the skill set—or the resilience—to step into the top role and succeed.

This is why it’s not as simple as promoting one of the many high-ranking executives already working in the company. Sure, there are talented leaders running major divisions, but the leap from overseeing a business unit to running the entire organization is monumental. A CEO must see the big picture, align long-term vision with short-term execution, and make decisions that can affect the global economy. In other words, not just anyone can do it.

It’s also why these companies, despite their global reach and influence, sometimes opt to bring back someone like Iger or Hill. These leaders know the company inside and out. They have a deep understanding of its culture, its customers, and its unique challenges. They’ve already proven they can handle the pressure and make the right calls. And perhaps most importantly, they’ve built trust with the board, shareholders, and employees over many years of service.

Could Nike or Disney have hired an external CEO? Certainly. But when you’re leading a brand as iconic and complex as these two, the risk of bringing in an outsider might be too great. Hiring from outside comes with its own set of challenges—there’s always the potential for a culture clash, misaligned priorities, or simply a steep learning curve. A high-profile failure at the CEO level can set a company back for years, and when you're as big as Nike or Disney, you can’t afford that kind of misstep.