Nike Chief Executive Officer Mark Parker has been granted a stock award valued at nearly 10 times his annual share grant, on that condition that he remains as the company’s head for the next five years.
The 59-year-old head of Nike was granted restricted stock with a target value of $30 million. Grant will receive the full value of the award if he’s employed through its vesting period. The Oregon-based company revealed the stock award in a July 20 proxy filing. Parker was previously given stock awards with reported values of $3.5 million each of the past three fiscal years.
Mark Parker has been fully endorsed by Nike founder and former CEO Phil Knight. The company’s founder personally chose Parker to succeed him.
The company’s compensation committe is led by Apple Inc. CEO Tim Cook. The committee said “Mr. Parker’s strong performance” and “the importance of retaining” him to be among the reasons for the large stock award and five year guarantee.
“In granting this equity award, Phil Knight and Nike’s board of directors recognize Mark Parker’s exceptional leadership and his critical role in driving Nike Inc.’s growth strategy for years to come,” Greg Rossiter, a spokesman for the company said.
Parker joined Nike as a shoe designer in 1979 and has held roles in marketing and design.
Nike will also pay the tax bill for the $30 million award, equaling a $10,387 gross-up, or tax reimbursement. The company grants $10,000 cash awards, grossed up for taxes, in recognition of an employee’s 30th anniversary at the company, and every five years thereafter.
It should be noted that sixty percent of Parker’s $30 million stock award will be linked to revenue and earnings-per-share growth from fiscal 2016 through fiscal 2020. He will earn the remainder of the grant if he’s employed through June 30, 2020.
Parker also received $20 million in stock awards on May 2012. Those stocks will vest on May 2017.