July 26, 2017
The chairman, president and CEO’s pay dropped from the $47.6 million logged in 2015.
COMPETITIVE COMPENSATION: Mark Parker, chairman, president and chief executive officer of Nike Inc., has a big job and a pay package to match, even if it wasn’t quite as big last year as it was in 2015.
Parker’s pay last year tallied $13.9 million, including stock and options valued at $5 million, incentive pay of $6.3 million and a $1.6 million salary, according to a regulatory filing. He also received $112,907 worth of personal travel on company aircraft. In 2015, a stock grant valued at $33.5 million pushed Parker’s compensation total to $47.6 million.
Stock and option pay can be deceiving since the value of that compensation can fluctuate wildly given vesting schedules and changes in share price.
Parker has in recent years steered an aggressive course for Nike, which is looking to grow revenues to $50 billion by the end of 2020, up from $30.6 billion in 2014.
But even that considerable scale and ambition hasn’t insulated the activewear giant from Amazon, which controls a wide swath of the e-commerce world.
Parker said last month that Nike would test selling Nike product on Amazon to improve the customer experience by “elevating the way the brand is presented and increasing the quality of product storytelling.”
Although Nike wasn’t selling directly on Amazon’s platform, third-party sellers were, leading to something of a confused presentation.
“We’re in the early stages, but we really look forward to evaluating the results of the pilot,” Parker said.
Nike has a massive online business with more than $2 billion in sales through nike.com and its app and also distributed through other platforms, including Alibaba’s Tmall in China and Zalando in Europe.
Nike also cut the pay of other top executives. It’s a tough time for the company because of weak U.S. sales, a sagging stock price and stiff competition from Adidas. In June, Nike announced plans to lay off more than 1,000 workers.
Parker said in March that the shift to digital commerce was hurting Nike’s sales. Stores of all types, particularly clothing companies, have had to cut prices to remain competitive. Nike recently announced that it would sell its products directly on Amazon.