PORTLAND, Ore. (AP) — Nike Inc.'s CEO Mark Parker received compensation valued at $13.1 million during fiscal 2010 — a more than 84 percent increase from the year before, according to an Associated Press analysis of a recent regulatory filing by the shoe and apparel company.
Parker's pay package totaled about $7.1 million the year before. But the company did not grant him, nor any of its executives, an annual performance-related cash bonus that year because the company didn't meet its financial performance goals.
Nike exceeded its financial goals for the 2010 and as a result, it paid Parker $4.4 million in a cash performance bonus, which made up the majority of his compensation growth.
Parker received a salary of nearly $1.5 million and stock options valued at $7 million. The company also gave him other compensation of $191,685 for the year — including contributions to retirement funds and an anniversary service award for the chief executive.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits, making the AP total different in most cases from the total that companies report to the Securities and Exchange Commission.
Nike, based in Beaverton, Ore., earned $1.91 billion for the 2010 fiscal year — a 28 percent increase from the year before. Excluding one-time items, that measure rose 2 percent.
Annual revenue fell 1 percent to $19 billion and was down 2 percent excluding currency changes.
The weak economy did slow Nike during the year, but the company was able to improve its balance sheet and profitability under Parker's leadership as its strategy of maintaining tight costs controls and expanding its brands around the globe began to pay off.
Nike's stock price rose roughly 22 percent during the fiscal year.
Copyright 2010 The Associated Press.