Nike will raise salaries for more than 7,000 employees and change how it awards annual bonuses to its global staff in an attempt to address concerns about pay equity and corporate culture, CNBC has learned.
The company decided to overhaul its compensation practices after conducting an internal review of its pay practices earlier this year. Nike said about 10 percent of its employees — both men and women — will receive adjustments to their pay to ensure equal and competitive compensation for the same job functions around the world, according to an internal memo reviewed by CNBC.
“With movement of internal talent, and the demands of a dynamic market, we analyze pay each year. This year, we have conducted a deeper analysis of all roles, at all levels globally,” the memo said. The company said its benefits program is designed to “support a culture in which employees feel included and empowered.”
The company said bonuses will now be based on company-wide performance instead of a combination that also included team and individual performance, beginning in fiscal year 2019.
Dow Jones was the first to report on the changes.
Like several other companies in the U.S., Nike got caught in its own #MeToo movement this spring after a group of women circulated an informal survey that examined disparities in pay and advancement at the Oregon company. Several senior male employees resigned. In May, Nike CEO Mark Parker apologized to employees for cultivating a corporate culture that excluded some of its employees and did not take complaints about conduct seriously.
Changes to compensation are just the latest attempt from Nike to improve its corporate culture for women. Nike appointed Amy Montagne as vice president and general manager of global categories and Kellie Leonard as its new chief of diversity and inclusion.
In its latest quarter, Nike said it saw a “return to growth in North America,” which has lately been a sluggish spot for sales following a handful of retail bankruptcies. A slew of new product launches have also helped boost revenues overseas.
The company has, meanwhile, been making a bigger push with women’s sneakers and apparel of late. This comes as sales of high heels have tumbled, with female shoppers increasingly opting for athleisure wear over fancy dresses. Despite its #MeToo blunders, Nike hasn’t seen much pushback from women nor a dip in sales. Instead, the company is doing even more to win women over.
Nike is also heavily focused on beefing up its own e-commerce platform and owned stores to sell more directly to consumers. It recently opened a new shop on Melrose Ave. in Los Angeles, California, for example, where it plans to sell products that are chosen by local shoppers via the NikePlus app.
Nike shares are trading up from session lows of $76.13, but still down 0.33 percent from Friday’s close.
—CNBC’s Sara Eisen contributed to this report.
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