Phil Knight, who more than 50 years ago co-founded the sports footwear and apparel company that became the world's largest, on Tuesday announced plans to step away from the company.

Nike issued statements saying Knight, 77, had recommended that chief executive Mark Parker replace him as company chairman, a change likely to occur in 2016.

Knight also announced that he had created a limited liability company called Swoosh that would hold a majority of his Nike Class A Common Stock shares.

"Swoosh will itself have a governance structure that is designed to make thoughtful and forward-looking decisions with respect to the ongoing voting and management of those shares," Knight said. "I believe this structure will maintain Nike's strong corporate governance, which has focused our management on serving the consumer and pursuing profitable, long-term growth."

Also, the company announced that Knight's son, Travis Knight, 41, chief executive of movie studio Laika, would join the Nike board of directors.

Parker was named president and chief executive of Nike in 2006.

Stock analysts were not surprised at Parker's elevation, or Knight's easing away from the company, saying it was only a matter of timing when such a transition would occur.

"At the end of the day Phil obviously has created his mark on history and with the business in general," said stock analyst Christopher Svezia of Susquehanna Financial Group.

"Mark has done a great job in his role. It doesn't shock anybody about what's going on. It was just a question of timing. So here we are: Phil steps aside and he has at least his name represented on the board with his son."

Phil Knight explained the moves in the statement issued about an hour after the close of markets.

"I have long felt a great responsibility to provide clarity and certainty for the long-term governance and leadership of Nike and for my ultimate transition as chairman. I have worked closely with the Nike board in developing this plan and in identifying the most qualified person to serve as my successor in this role.

"I believe Mark is the best choice to succeed me. He has been an outstanding CEO for the past nine years, and has demonstrated time and again his love for this company and his clear vision for capturing the tremendous potential Nike has to innovate, inspire, and drive growth.

"For myself, I intend to continue to work with Nike and look forward to contributing to its future well after my chairmanship ends."

Parker, who joined the company as a footwear designer after receiving a degree in political science at Penn State Univeristy, said in the statement:

"Phil founded Nike to serve athletes. That vision and inspiration continues to drive our success today around the world. I have been privileged to work with Phil for over 35 years, and Nike's exceptional management team and I are committed to building on Phil's vision to drive the next era of growth for Nike."

The news release also outlined the basics of Swoosh LLC and the management of Knight's Nike Class A Common Stock -- which, based on Tuesday's closing price of about $108, is valued at about $13.88 billion.

The Swoosh shares represent about 15 percent of the combined total outstanding shares of NIKE Class A and Class B Common Stock.

Knight has formed a Board of Directors of Swoosh to serve as its governing body, which will determine how the Class A shares are voted and managed going forward. The Board of Directors will initially have four members, who exercise five votes.

Of the five votes assigned to the Swoosh board, two will initially be held by Knight, and the other three will be held by: Parker; Alan Graf, Jr., FedEx Corp. executive vice president and CFO and a Nike director since 2002; and John Donahoe II, eBay chief executive and a Nike director since last year.

In the future, Knight may choose to appoint an additional director and assign one or both of his votes to that director.

The selection of Travis Knight, an accomplished filmmaker, is curious as the Nike co-founder's son had not shown previous interest in following in father's sneakered footsteps. Travis Knight, in fact, is rarely seen in Nike footwear and attire.

Phil Knight, Laika's owner and board chairman, led a hands-off management approach to his son's venture. Laika, founded in 2003, has earned Academy Award nominations for films The Boxtrolls (2014) and ParaNorman (2012). Travis Knight won an Annie Award, the animation industry's highest honor, for his character animation work ion ParaNorman.

"He's certainly not an expert in film production, but what he does bring is a lifetime of business experience," Travis Knight once said of his father.

When he calls: "He's just haranguing me. He's trying to keep me honest, make sure I know what I'm doing."



"On a personal level it's been extraordinarily rewarding to work with my father in this way."



"It's taken our relationship to a different level."

Another time, Travis Knight said of his father:

"He's not a super wordy guy. One of his favorite phrases is: 'In 25 words or less,' and then he'd just get to the core of it. He's not a guy that's just going to sit and chat over the fire ad infinitum."

Staff Reporter Mike Rogoway contributed to this story.

This story will be updated.

--Allan Brettman

503-294-5900

@allanbrettman