Nike Inc. has just given "a restricted stock award" to its chief executive officer, Mark Parker. The stock, valued at $30 million, entails the condition that Parker will stay with Nike for the coming five years.
Greg Rossieter, a Nike spokesman said, "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."
In fact, the stock grant is practically 10 times the worth of his annual share. Mark Parker's previous stock awards were valued at $3.5 million each for the previous three years.
Not only that, but Nike will also be shouldering the tax bill for the restricted stock award, which HypeBeast estimates to be over $10,000 in tax reimbursements.
But it doesn't stop there. Nike also values its employees so much that the sportswear giant gives $10,000 bonuses to each employee, so long as they have reached the 30th year of working with the company.
The bonus is also given every five years after the 30th year. Mark Parker was no exception to this rule, who just celebrated his 35 years of working with Nike.
The compensation committee of Nike - led by Apple Inc. CEO Tim Cook - reviewed "Mr. Parker's strong performance" and "the importance of retaining" him in order to figure out how much will be awarded to him in the form of the grant. Nike's shares rose up to 46 percent just the past year.
According to the filing as per Business of Fashion, "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."
Parker is set to earn the rest of the grant as long as he is still employed by the company until June 30, 2020.
This isn't the first time Mark Parker received a stock award from Nike. Back in May 2012, the sportswear company gave its CEO a $20 million stock award. Mark Parker succeeded Phil Knight in 2006, after the latter retired.