Ample increases in Nike Inc.’s revenues, pre-tax profits and earnings-per-share helped president and chief executive office Mark Parker increase his total compensation 14.6 percent last year, to $16.8 million.
The pay package, coming against a $14.7 million total for the 2013-14 fiscal year, included a 21.2 percent increase cash compensation, with Parker’s salary unchanged, at $1.55 million, and his non-equity incentive plan compensation up a robust 26.2 percent to $8.2 million from $6.5 million.
Among amounts included in Nike’s compensation tables, released as part of its definitive proxy to the Securities and Exchange Commission Monday, Parker’s stock awards were unchanged at $3.5 million and his option awards up 13.9 percent to $2.8 million from $2.5 million. These awards are subject to vesting schedules and stock fluctuation and may not be collected by the executive but are reported at grant date fair value.
Parker directly benefited from an increase in the percentage of his base salary applicable to his option awards, which rose to 180 percent of his base salary from 170 percent.
Other compensation totaled $726,000, 13.6 percent above the $639,000 collected in the prior year.
As gauged by Nike’s compensation committee, revenues in the year ended May 31 hit $30.57 billion, 10.4 percent above the previous year’s $27.69 billion; pre-tax profits advanced to $4.2 billion, 19 percent above the $3.5 billion recorded in the prior year, and earnings per share were up 25.9 percent to $3.74 from $2.97.
The fiscal year that began at Nike June 1 could be Parker’s last as the company’s ceo. Last month, Phil Knight, cofounder and chairman of the Beaverton, Ore.-based athletic apparel, footwear and equipment giant, informed Nike’s board that he had transferred 128.5 million shares of his Nike stock to a new entity, Swoosh LLC, that will manage and vote the shares.
The move comes in advance of Knight’s retirement from active involvement from the company he founded 41 years ago. He said he will recommend that Parker succeed him as chairman next year.