According to Bloomberg’s latest report, John Donahoe, the outgoing President and CEO of American sports giant Nike, has earned more than $100 million in compensation (including cash, stocks, and options) during his nearly five-year tenure.
John Donahoe (pictured below) officially took on the role of CEO and President of Nike on January 13, 2020. According to Nike’s latest announcement on September 19, he will step down on October 13 and continue serving as an advisor to the group until January 31, 2025.
Following the announcement, Nike’s stock price rose by 6.84% to $86.52 per share as of the close of trading on September 20, with a current market value of $129.73 billion.
During John Donahoe’s tenure at Nike (from January 13, 2020, to the announcement of his departure on September 19, 2024), the company’s stock price dropped by 16.5% (from $96.94 per share to $80.98 per share).
Luxe.CO reviewed Nike’s annual reports from fiscal years 2020 to 2024, which detail executive compensation levels and structures. As CEO, John Donahoe’s compensation is divided into five parts: base salary, performance bonus, long-term performance bonus (based on the company’s three-year performance), restricted stock, and stock options. The specific figures are outlined in the table below:
According to the reports, over the past five years, John Donahoe has received a total of $102 million in compensation from Nike, with $54.9 million in cash (salary + bonus) and $47.1 million in stock and options. These figures do not include personal income tax and capital gains tax he has paid.
Bloomberg’s report also notes that Nike paid John Donahoe a special equity award worth $35 million to compensate for the salary he forfeited when leaving his previous employer. His departure will result in the loss of more than $5 million in unvested Nike equity awards.
Another document cited by Bloomberg reveals that Elliott Hill, Nike’s incoming CEO and President, will receive approximately $20 million annually — including a base salary of $1.5 million and a $3 million performance bonus, similar to his predecessor, along with a $15.5 million long-term performance-linked bonus and stock options. In addition, Elliott Hill will receive a $7 million signing bonus, payable in cash and stock.
Elliott Hill (pictured below) worked at Nike for 32 years before retiring in 2020. His last position was President of Consumer and Marketplace, where he was responsible for leading all commercial and marketing activities for Nike and the Jordan brands.
If Elliott Hill can lead Nike back to growth in performance and stock price, John Donahoe will also benefit — Bloomberg estimates that he still holds over 1.5 million stock options in Nike. As long as the stock price exceeds the exercise price range stipulated in the option agreement ($97.61 per share to $167.51 per share), he stands to profit.
| Sources: Bloomberg, Yahoo Finance
| Image Credit: Nike Official Website
| Editor: LeZhi, Wei Fang
