Nike gave Chief Executive Officer Mark Parker a stock award valued at almost 10 times his typical annual share grant, on the condition that he work for the sporting-goods company for the next five years.
Nike granted Parker, 59, restricted stock with a target value of $30 million, which he'll receive if he's employed through the award's vesting period, according to the Beaverton, Oregon-based company's July 20 proxy filing. He was previously given stock awards with reported values of $3.5 million each of the past three fiscal years, the filing shows.
Parker, who's been Nike's CEO since 2006, was endorsed by co-founder Phil Knight to succeed him as chairman next year when he retires. Parker will have to build on Knight's legacy of creating the world's largest sporting-goods maker as competitors such as Adidas AG accelerate product development.
Nike's compensation committee, which is led by Apple CEO Tim Cook, reviewed "Mr. Parker's strong performance" and "the importance of retaining" him to determine the size of the grant, according to the filing. Shares of Nike have risen 46 per cent in the past year.