Nike is raising salaries for more than 7,000 employees and changing the way it awards bonuses to its global staff to help ensure equity of compensation between the same job functions around the world, the company announced July 23 in an internal memo, according to The Wall Street Journal.
Here are three things to know:
1. Nike has more than 74,000 employees, and 10 percent of those employees will receive a competitive-pay adjustment. The adjustments will begin in August and will be annualized over the rest of the fiscal year that began June 1.
2. Nike will also change its bonus system this fiscal year. Bonuses will now be tied to Nike's budgeted earnings before interest and tax for the year. In the past, bonuses were awarded based on several factors, including individual and team performance.
3. The changes seek to ensure "more competitive pay" and to "support a culture in which employees feel included and empowered," the company said, according to WSJ.
Access the full WSJ article here.
More articles on business:
Trump: $5B Google fine is proof of mistreatment
Comcast ends pursuit of Fox media assets
Microsoft's cloud platform helps drive 17% revenue spike in Q2