FY17 Representation and Pay
We Believe in the Inspirational Power of Sport to Break Down Barriers, Overcome Differences, and Bring People Together
No matter where we come from, a love of sport unites us. It teaches us to be competitive and to value collaboration. To include different perspectives, because teams win when everyone contributes. To take a “next play” attitude to failure, and apply what we’ve learned instantly.
Creativity fuels our culture. With our open and global mindset, we’re constantly curious about the world. We serve athletes in nearly every country, and we’re inspired by every one of them.
By listening to the unique voices of every country, culture, and community, we can unleash the potential of every athlete*.
At Nike, we are committed to evolving our culture and creating an environment focused on respect, equality, inclusion and empowerment.
For Nike to grow and evolve, we need to create meaningful change and put a sharper focus on how we lead our teams and work together. We’re a growth company committed to employing the best and brightest to serve consumers globally. Employees with the necessary skillsets, expertise and diversity are critical to drive our business forward. Diversity allows for a breadth of perspectives and experiences to develop thoughtful and original ideas; it’s a key component of innovation.
We also want to create a culture of true inclusion. As part of our plan, we need to improve representation of women and underrepresented minorities (URM)1.
While we’re focused on these two areas in the near term, we will continue to expand representation across other dimensions of diversity over the long term. We’ve spoken about this many times, and tried different ways to achieve change, but we have failed to gain traction: our hiring and promotion decisions are not changing senior-level representation as quickly as we have wanted. We need to accelerate our progress and are committed to being transparent.
[1] At Nike, our working definition of an underrepresented minority (URM) is someone whose racial or ethnic makeup is from one of the following: American Indian or Alaskan Native, Asian, Black or African American, Hispanic/Latino, Native Hawaiian or Other Pacific Islander, or Two or More Races.
Our efforts to improve will begin at the Vice President (VP) level because representation at this level provides a foundation for us to grow representation at all levels. As a group, these leaders manage broad teams, recognize and promote internal talent, hire in larger volume and are charged with leading the business direction for our company and tone for our culture. They also serve as role models and advocates for talent in the organization. We’re also committed to increasing diverse representation across all levels of the company because we know that our manager and director-level employees will be part of the future senior leadership teams for Nike.
The FY17 data for all employees, Directors+ and VPs is as follows:
We recognize that pay can be managed and assessed in a number of ways. To ensure competitive pay, each year Nike benchmarks with other leading global companies and uses this data to inform salary investments and adjust the pay ranges we use to guide pay decisions.
At Nike, we define pay equity as equal compensation for women, men, and all races/ethnicities who undertake the same work at the same level, experience and performance—and this methodology aligns with top tier global companies.
Nike’s FY17 data show that for every $1 earned by men, women globally earned 99.9 cents, and for every $1 earned by white employees in the U.S., URM also earned $1.
We will maintain focus, driving with 1:1 as our goal for both every year. We will monitor this data on an ongoing basis.
Pay Equity 2017
- 99.9 cents to $1 Women vs. Men (Global)
- $1 to $1 Underrepresented Minorities vs. Caucasian (US)
Pay Equity 2016
- 99.6 cents to $1 Women vs. Men (Global)
- $1 to $1 Underrepresented Minorities vs. Caucasian (US)
Starting in 2018, and in accordance with the United Kingdom’s Government Equality Office, companies that operate in the UK with more than 250 employees are required to publish and report their Gender Pay Gap.
This data is calculated by aggregating all men’s pay versus all women’s pay—across all bands, levels and jobs—and taking the average of each.
As part of this report, Nike has tracked the following data, as of April 5, 2017:
- Hourly pay rate between women and men – both the mean (average) and the median (middle)
- Percentage of women and men receiving a bonus
- Total bonuses paid between women and men annually
- Pay distribution of women and men divided into quartiles
- There are separate reports for Retail and Wholesale; Nike’s employee presence in the UK is predominantly retail, accounting for 88% of our total population
Applying the formula, the calculations show that on average, UK men earned 10% more in hourly pay than women in Wholesale (comprised of all Nike employees in the UK minus Retail), and 3% more in Retail.
Globally, Nike is working to accelerate representation through hiring, promotion and retention. Here are ways we are accelerating our investment:
- Leadership: Hold leaders accountable for representation growth within their teams (women globally, and POC in the U.S.).
- Development of diverse talent: A multi-faceted approach to investing in our high-potential diverse talent. This includes evolving our current development programs, creating new programs for emerging diverse leaders, and leveraging our employee networks in a new way to invest in our diverse talent of the future.
- Inclusive hiring: Invest in a dedicated diversity sourcing team to be immersed in the marketplace; increase visibility and accountability to ensure slates of diverse candidates when hiring; and remove bias from critical moments of the hiring process through creating more inclusive job descriptions, enabling blind resume reviews, eliminating the collection of candidate salary history and using data to inform hiring decisions.
- Accelerated training: Customized manager training will roll out, ensuring that all managers are clear on expectations—when and how they are compelled to act—and have resources to lead in a way consistent with our values and behaviors. Mandatory Unconscious Bias Awareness training will be available for all employees aimed at unlocking the full potential of every employee and aligned with our values to support a stronger, more inclusive culture.
Nike will continue to track representation and pay data.