Nike Inc. has given Chief Executive Mark Parker a $30 million stock award to stay with the athletic gear maker for at least the next five years.
Lauding the company’s “strong performance under Mr. Parker’s leadership,” and to provide an incentive for the top executive to stay at the Oregon-based company, Nike’s (NKE) compensation committee decided to grant Parker a restricted stock award with a target value of $30 million.
That award is far higher than the stock grants Nike typically gives Parker in any given year. Annual stock awards for the executive have hovered around $3.5 million in recent years, and total compensation in the past three years have been about half of the stock award Nike gave Parker.
Nike said 60% of the award’s maximum value is based on the company’s performance.
Since Parker became CEO in early 2006, Nike’s shares have surged 438%, far exceeding the 69% notched by the Dow Jones Industrial Average over the same period. Nike even joined the DJIA in 2013 in a nod to the company’s increased relevance among U.S. stocks.
Sales and profits have also soared under Parker’s leadership. In fiscal 2007, the first year that Parker fully ran the company, Nike reported annual revenue of $16.3 billion on a profit of $1.5 billion. In the most recent year, those figures were $30.6 billion and $3.3 billion, respectively.
Nike, the largest sportswear maker in the world, has benefited from investments in product technology, as well as expansion abroad, the increased popularity of athletic wear as casual attire, and the poor performance of top rival Adidas AG (ADDYY) in the U.S. market.
Parker may even soon consolidate control at the top of Nike. Late last month, Nike co-founder Phil Knight said on Tuesday that he is stepping down as chairman next year. He wants Parker to succeed him in that role.