Nike says “Just Do It” to wage increases
Nike announced on Monday that it will increase the wages for roughly 7,000 employees.
Spokeswoman Sandra Carreon-John explained that Nike reviews wages annually, but they took an even closer look this year. The athletic apparel company limited the number of employees that would receive the wage to continue competition within the company.
Following an April report by the New York Times in which multiple employees complained about gender discrimination and sexual harassment, this wage increase looks good for Nike. The company lost multiple executives amidst these allegations, so they needed a reboot for their corporate image.
The wage increase wasn’t the only change Nike made, either. The company also changed its bonus structure; although it used to be based on a combination of company, team, and individual performance, it will now be based solely on company performance.
Nike’s stock (NKE) has fallen roughly 0.5 percent on Monday following the news, but over the past 30 days, their shares have risen almost six percent. Even more impressively, in the past twelve months, the sportswear firm has seen their stock jump almost 30 percent.
Although Nike’s image has taken a beating over the past few months, they still continue to show that they are arguably the most dominant athletic apparel company in the world. Although Adidas has gained some ground in them with revolutionary designs and continued expansion into Europe, Nike still dominates in market share by a significant margin.