By  on July 28, 2009

Lower earnings last year translated into smaller paychecks for Nike Inc.’s chief executive officer and the president of the Nike brand.

Mark Parker, president and ceo of Nike, saw his total compensation decline 17 percent to $7.3 million from $8.8 million the year before. Although his base pay rose 6.3 percent to $1.5 million and his stock and option awards gained 4.4 percent to a total of $4.8 million, these couldn’t make up for a nearly two-thirds reduction in his nonequity incentive plan compensation, to $900,000 from nearly $2.7 million.

Parker’s long-term incentive compensation, one of two components of the nonequity package, rose to $900,000 from $750,000 in fiscal 2008, but annual incentive compensation, tied to company performance, shrank to zero from $1.9 million.

For Parker and his fellow top executives to qualify for the annual payout, Nike would have had to have posted yearend earnings before income taxes of $2.47 billion. However, Nike’s pretax profits fell to $1.96 billion, shutting out Parker and the other principals.

Charles Denson, president of the Nike brand, was the second highest paid executive on the company payroll and saw his total pay package contract 19.6 percent to $5.9 million from $7.3 million the year before. His salary rose to nearly $1.3 million from $1.2 million, but his stock and option awards declined 1.8 percent to $3.7 million. Without a performance bonus, his nonequity compensation fell to $750,000, the amount of his long-term incentive compensation, from $2.2 million the year before.

Because of vesting schedules and fluctuations in stock prices, stock and options awards weren’t necessarily recognized by the executives.

Last year, Nike’s net income fell 21.1 percent to $1.49 billion as revenues rose 2.9 percent to $19.18 billion.

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