Nike to raise salaries after internal review
After an internal pay review, Nike announced Monday that it would be giving 10% of employees competitive pay adjustments, which would raise the salaries of more than 7,000 employees, The Wall Street Journal first reported.
The company is also changing how bonuses are awarded, measuring employees' "companywide performance" rather than a combination of their team, individual and company performance, Nike told Retail Dive in an email. Nike is also changing its stock options, allowing employees to choose how they receive annual stock awards.
These adjustments come some months after Nike was blasted for fostering a toxic workplace environment for women, resulting in a mass exodus of some of the sportswear brand's top executives. A Nike spokesperson told Retail Dive that while Nike tracks global pay equity, the raises were not gender-specific and noted that for every $1 men at Nike made last year, women made 99.9 cents.
As popular as Nike is, the company wasn't exactly the retailer to be this summer. The departure of so many executives over claims of misconduct raised questions about the brand's workplace environment and, at least for a time, affected how consumers thought of the company as well.
The company's problems seemed to stem from a "boys club" culture that led to few diversity hires and a low promotion rate for women and minorities at the company. While CEO Mark Parker apologized for the work environment, and promoted two women to replace the roles of the executives Jayme Martin and Antoine Andrews, the brand also had to cope with a brand image that was not in line with what it presented to customers.
Shortly before the first firings began, Nike announced a new focus on women in athletics, which started to ring false in light of the company's own diversity troubles. Nevertheless, since then the company has charged ahead with its focus on diversity, releasing the first Air Jordan collaboration for women and making changes at corporate to keep the brand image in line with the company culture.
The recent pay changes seem to reflect that movement, with the company raising salaries "across all levels, geographies, functions and brands." Nike also noted that the hope was not only to provide "competitive pay and benefits," but also to "support a culture in which employees feel included and empowered."
Making moves to ensure equitable pay across the company is a step in the right direction for Nike (although the company seems to be doing fine with consumers in the months since the culture review) and certainly a step to preventing a similar occurrence years down the line.
- The Wall Street Journal Nike to Adjust Pay for Thousands of Staffers After Internal Review
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