Nike Inc. employees were told they would receive less than their target bonus amounts following a year of challenges that has eroded company performance, according to Bloomberg's report.
Will Nike's Greater China segment revenue increase Year-over-Year (reported basis) in Fiscal 1Q2027?
Will Nike Brand Digital revenue post a positive Year-over-Year growth rate in Fiscal 1H2027?
“This year took real work,” Nike Chief Executive Officer Elliott Hill said in a memo reviewed by Bloomberg News. “But the results are not where we need them to be yet.”
In the memo, Hill said that global employees would receive 74% of their target bonus, while the payouts for regional teams varied.
In North America, where Nike has gained ground, employees are set to receive 92% of their bonus, but those in Greater China, which has been a persistent problem area, will only receive 56%.
Hill, who has led Nike for almost two years, has focused his efforts on recapturing growth, but progress has been slow. On Tuesday, the company reported revenue that beat expectations, but the stock still fell as executives said sales will decline over the coming months.
“We’re starting to see signals of our progress in performance product, wholesale, North America, and in how consumers are responding when we lead with sport,” Hill wrote. “We need to turn the progress we have made into consistent performance.”
Separately, Converse workers were told in a memo from the brand’s CEO Aaron Cain that their bonus payouts would no longer be tied to Nike’s results, and instead would only reflect the performance of the Converse brand.
Source: Nike Bonus Payouts to Fall Short of Target on Lackluster Results; July 2, 2026, Bloomberg: https://www.bloomberg.com/news/articles/2026-07-01/nike-bonus-payouts-to-fall-short-of-target-on-lackluster-results?srnd=phx-industries
