Following an endorsement by former CEO and co-founder Phil Knight, Nike has awarded new CEO Mark Parker with a stock grant worth $30 million (initially promised only $3.5 million). But there’s a Catch 22: to receive the allotted money, Parker must remain at Nike for the next five years.
Quite the incentive, eh?
According to Nike’s proxy reports, Mark Parker grasps over 2.5 million Class B stocks, which is valued at 0.4 percent of the class of 22 persons.
Mark Parker’s Earnings Summary
$1.55 million in annual salary
over $3.5 million in stock awards
over $8.2 million in non-equity incentive plan compensation
$725,965 in other compensation
over $16 million in TOTAL compensation
Mark Parker joined forces with Nike in 1979 as a shoe designer, compiling other job responsibilities within Nike’s marketing and design departments in his 35 years of employment. And to commemorate and celebrate his 35th anniversary, Nike wrote a check for $10,000 as a bonus with Parker’s name on it.
This isn’t the first incident that Nike granted Parker stock insight. In 2012, Parker retained $20 million in stock awards.
But fast forwarding to present-day, Parker’s scheduled $30 million between 2016-2020 are linked between revenue and earnings-per-share. So if Parker keeps Nike on his resume when the calendar strikes June 30, 2020, the $30 million will rest in Parker’s hands.
Heading into 2015’s fourth quarter, Nike reported a five percent spike in revenue to $7.8 billion. For 2015 as a whole, Nike further reports a 10 percent revenue increase to a year’s total of $30.6 billion.
*Featured Photo (above) credit to USA TODAY Sports