John Donahoe, president and chief govt officer of Nike Inc., noticed his goal pay rise by 13.7 p.c to $32.8 million final 12 months, in line with the corporate’s annual proxy assertion.
That included wage of $1.5 million, incentive pay of $6.8 million and different compensation of $4 million, which was principally made up of $3.9 million in charitable contributions made by the corporate to match the CEO’s personal donations.
However the bulk of Donahoe’s pay got here from inventory and possibility awards valued at $20.5 million as of the date they had been granted.
The Securities and Alternate Fee not too long ago mandated an extra reporting technique for CEO pay — compensation really paid — which appears to be like at how the worth of his unvested shares modified over the 12 months.
By that metric, Donahoe’s pay tallied $29.4 million, or $3.4 million beneath the goal pay that Nike’s board envisioned for him. His “precise” pay might have been greater, however the firm’s inventory for the fiscal 12 months ended Might 31 fell by 11.4 p.c.
Whereas Nike stays the energetic powerhouse in vogue, the inventory is down since he took the helm in January 2020.
In accordance with one other newly mandated information level referred to within the regulatory submitting, $100 invested in Nike in the beginning of its 2021 fiscal 12 months was value $109.51 after three years — lower than the $116.84 shareholder return seen by the corporate’s chosen peer group, the Dow Jones US Index.
The proxy units the agenda for Nike’s annual assembly, which will probably be held on Sept. 12.
This 12 months, along with the traditional enterprise of electing administrators and appointing an auditor, buyers are additionally as a result of contemplate shareholder proposals on a supplemental pay fairness disclosure and a provide chain administration report.