Wednesday, July 30, 2014

How Much Does Nike's CEO Make Year.

Nike's robust fiscal year, which included a nearly 10 percent increase in revenue and a 24 percent jump in stock price, resulted in another round of big paychecks for the company's top executives.

Here's the value of the 2014 compensation awarded to the company's top five executives, according to an annual proxy statement filed Friday:

CEO Mark Parker: $14.7 million
Chief Financial Officer Don Blair: $4.1 million
Nike Brand President Trevor Edwards: $4.6 million
Chief Operating Officer Eric Sprunk: $4.3 million
Product and Merchandising President Jeanne P. Jackson: $4.2 million
Parker's compensation included $1.5 million in salary, $3.5 million in stock awards, $2.5 million in stock options and a $6.5 million bonus.

Like many public companies, Nike uses a "pay for performance" philosophy to decide executive bonuses. It also adheres to what many consider best practices by awarding bonuses based on one-year and three-year operating performance. The approach decreases the likelihood of executives making short-term decisions at the expense of long-term success and profitability.

Nike's three-year operating bonus is based on a combination of earnings and revenue growth in order to align the interests of management and shareholders.

Nike's top five executives earned 134 percent of the maximum long-term bonus in the just-concluded fiscal year, down from 147 percent last year.

For the year, which ended May 31, Nike's revenue climbed nearly 10 percent to $27.8 billion. Net income increased 9 percent to $2.7 billion. The stock (NYSE: NKE) climbed 24 percent to $76.91.

By The Numbers

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