Starting August 1, Nike will boost the paychecks of 7,000 workers across the 74,000-strong company.
The Wall Street Journal first reported the pay adjustment, which comes as the athletic apparel leader concluded an internal pay review that also will update how the company awards annual bonuses.
The pay bumps will affect both male and female employees “across all levels, geographies, functions and brands,” a Nike spokesperson said.
“Through NIKE’s Total Rewards program, we strive to meet the diverse needs of our employees, deliver differentiated, competitive pay and benefits, and support a culture in which employees feel included and empowered,” a Nike spokesperson told Sourcing Journal. “As part of this approach and commitment we have made the following changes to pay and rewards.”
Though the retailer undertakes compensation reviews annually as employees move to new roles and new divisions, Nike said it “conducted a deeper analysis of all roles, at all levels globally”—which could be the result of numerous executive changes and promotions earlier this year. The pay adjustments are designed to help keep Nike “competitive to market,” especially as athletic wear continues its hot streak in influencing the fashion industry and driving sales.
The Beaverton, Ore.-based company also reshuffled its approach to annual bonuses, abandoning payouts dictated by a cocktail of company, individual and team performance in favor of a One Performance Sharing Plan that measures success solely on company-wide performance, Nike said. What’s more, employees who are eligible to receive stock options now can select how they prefer to receive their annual awards, either as 100 percent stock options, 100 percent restricted stock units (RSUs), or a 50/50 combination of stock options and RSUs.
News of the compensation changes arrives on the heels of unprecedented corporate upheaval that saw several executives expelled from Nike’s leadership ranks. Over the course of several weeks, the sportswear firm acted on the results of memo circulated internally that documented instances of discrimination and harassment in what amounted to a “boys’ club culture” poisoning the work environment for marginalized employees.