Nike will increase the pay of more than 7,000 employees, approximately 10% of its workforce, according to CNBC. An internal memo stated that the company is attempting to address concerns about pay equity and corporate culture.
The adjustments are designed to ensure that both men and women receive equal and competitive compensation for performing the same jobs around the world. Nike had conducted an internal review of its pay practices earlier this year.
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Additionally, the retailer will change its bonus structure starting in fiscal 2019. Nike will base bonuses on companywide performance rather than the existing combination of factors, which includes team and individual performance.
The changes coincide with other Nike efforts to improve diversity. According to an internal memo from April 2018, only 29% percent of Nike VPs were women, and in the U.S. only 16% were people of color.
At that time, four executives had stepped down during a one-month period, including Antoine Andrews, VP of Diversity and Inclusion. His position was filled by Amy Montagne, the former VP, General Manager of the Global Nike Women’s category.
