American sports apparel giant Nike is giving raises to more than 7,000 employees and adjusting their bonus plans for employees globally. The changes were announced Monday after the company completed an internal pay review and are meant to address pay equity and improve company culture.
The Wall Street Journal first reported the news.
The Beaverton, Ore. company faced criticism this past spring when several top executives stepped down among complaints about lacking female leadership and a culture that some characterized to the Journal as a “boys’ club.” Company shares have rebounded since the scandals.
The Journal notes that 10% of Nike’s 74,000 employees will receive pay adjustments with the aim of establishing compensation equity between the same job roles at facilities around the world. The company said the adjustments, beginning in August, are to ensure “more competitive pay” and to “support a culture in which employees feel included and empowered.”
Both men and women in roles across “all levels, geographies, functions, and brands” will receive salary adjustments, a Nike spokeswoman said.
Staff eligible for annual bonuses will be “measured against a companywide earnings target starting this fiscal year,” the Journal noted, instead of in the previous system which based bonuses on a collection of factors. The bonuses will be “tied to Nike’s budgeted earnings before interest and tax,” and employees will be able to choose how they receive the bonus: as stock options, restricted stock units, or a mix.
