Phil Knight will step down as Nike chairman, the company announced Tuesday.
No specific date was given for Knight's departure, but the company says it plans to name a new chairman in 2016. Nike said Knight recommended that chief executive Mark Parker succeed him as chairman.
Knight plans to stay involved with the company after he steps down, the Associated Press reported.
Knight, a middle-distance runner at the University of Oregon, cofounded Blue Ribbon Sports with his coach, Bill Bowerman, in 1964. Blue Ribbon became Nike in 1971 and is now the world's largest footwear, apparel, and equipment company.
Last week, Nike announced its annual profit had grown 22 percent to $3.27 billion.
Knight, 77, is chairman of the board of directors for Nike and has been the company's president for various periods over the years.
Forbes named Knight the 35th richest person in the world earlier this year, with a net worth of $21.5 billion.