July 25, 2018
Athletic footwear and apparel giant Nike intends to raise salaries for more than 7,000 employees and change how it awards annual bonuses to its global staff in an attempt to address concerns about pay equity and corporate culture, CNBC reported on July 23.
The company decided to overhaul its compensation practices after conducting an internal review of its pay practices earlier this year, the business news network said. Nike said about 10% of its employees—both men and women—will receive adjustments to their pay to ensure equal and competitive compensation for the same job functions around the world, according to an internal memo reviewed by CNBC. The company has about 74,000 employees worldwide.
“With movement of internal talent, and the demands of a dynamic market, we analyze pay each year. This year, we have conducted a deeper analysis of all roles, at all levels globally,” the memo said. The company said its benefits program is designed to “support a culture in which employees feel included and empowered.”
The company said bonuses now will be based on company-wide performance instead of a combination that also included team and individual performance, beginning in fiscal year 2019.
Like several other U.S. companies, Nike got caught in its own #MeToo movement this spring after a group of women circulated an informal survey that examined disparities in pay and advancement at the Oregon-based company. Several senior male employees resigned. In May, Nike CEO Mark Parker apologized to employees for cultivating a corporate culture that excluded some of its employees and did not take complaints about conduct seriously.
Changes to compensation are just the latest attempt from Nike to improve its corporate culture for women. Nike appointed Amy Montagne as vice president and general manager of Global Categories and Kellie Leonard as its new chief of Diversity and Inclusion. Hilary Krane already is on the list of the company’s top executives as EVP, Chief Administrative Officer and General Counsel.
Research contact: @laurenthomasx3