Nike to Bump Up Pay for 7,400 Employees After Internal Review
(Bloomberg) -- Nike Inc. is raising the salaries of about 7,400 employees worldwide, following an internal review of the company’s pay structure.
Starting next month, the athletic shoe giant is adjusting pay for 10 percent of its global workforce, across all job levels, Nike spokeswoman Ilana Finley said Monday in a statement. The changes are being made to ensure that Nike salaries remain competitive within the industry, and help “support a culture in which employees feel included and empowered.”
While Nike analyzes its compensation annually, it took a deeper look this year. The pay announcement comes at a time of transition for the company and its workforce. Earlier this year, Nike fired a handful of male executives for behavior issues. Some media reports tied the ousters to sexual harassment and bullying. Chief Executive Officer Mark Parker called it “behavior inconsistent with our values.”
It’s not unusual for companies to make changes based on annual pay reviews, and lately, a handful of companies have focused explicitly on pay equity. This year, for example, Citigroup Inc. announced widespread reform aimed at narrowing discrepancies for women, minorities and others who warranted better compensation. Cloud-computing giant Salesforce.com recently spent $3 million adjusting the salaries of 11 percent of its employees.
In addition to the raises, Beaverton, Oregon-based Nike is also changing how it determines bonus payouts. Moving forward, they will be based primarily on companywide success, not the performance of specific individuals or their teams. And employees who are eligible to receive stock awards will now have more options.
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