Nike CEO John Donahoe’s Pay Increased to $32 Million, Even as Its Stock Has Dropped
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John Donahoe, president and chief executive officer of Nike Inc., saw his target pay rise by 13.7 percent to $32.8 million last year, according to the company’s annual proxy statement.
That included salary of $1.5 million, incentive pay of $6.8 million and other compensation of $4 million, which was mostly made up of $3.9 million in charitable contributions made by the company to match the CEO’s own donations.
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But the bulk of Donahoe’s pay came from stock and option awards valued at $20.5 million as of the date they were granted.
The Securities and Exchange Commission recently mandated an additional reporting method for CEO pay — compensation actually paid — which looks at how the value of his unvested shares changed over the year.
By that metric, Donahoe’s pay tallied $29.4 million, or $3.4 million below the target pay that Nike’s board envisioned for him. His “actual” pay could have been higher, but the company’s stock for the fiscal year ended May 31 fell by 11.4 percent.
While Nike remains the active powerhouse in fashion, the stock is down since he took the helm in January 2020.
According to another newly mandated data point referred to in the regulatory filing, $100 invested in Nike at the start of its 2021 fiscal year was worth $109.51 after three years — less than the $116.84 shareholder return seen by the company’s selected peer group, the Dow Jones U.S. Footwear Index.
The proxy sets the agenda for Nike’s annual meeting, which will be held on Sept. 12.
This year, in addition to the normal business of electing directors and appointing an auditor, investors are also due to consider shareholder proposals on a supplemental pay equity disclosure and a supply chain management report.
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