Nike

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Nike Case Study

1. The Chief Executive Officer
The CEO of Nike is Mark G. Parker. Mr. Parker has been CEO since 2006, almost 7 years. Nike, originally Blue Ribbon Sports, was founded in 1964 by an Oregon track athlete and his coach. The company is not a family run business. Mark Parker came from within the organization, starting as a footwear designer in 1979 and working his way up to CEO. Last year Mark received $35,200,000 in total annual compensation. His total compensation came in many different forms including: annual salary, cash bonuses, stock grants, option rants and “other” compensation. 2012 was the highest earnings Mark has made as CEO of Nike thanks to a $20,000,000 stock award. Nike does not publish the amount of equity the CEO owns, but it is safe to assume it is quite a lot considered the large stock and options compensation he receives yearly. 2. The Board of Directors

At Nike there are a total of 12 members on the board of directors not including CEO Mark Parker. The inside directors include Philip Knight and Bob Hurley. The other directors include: Alan Graf Jr. (CFO of FedEx), Orin Smith (former Starbucks CEO), Timothy Cook (Apple CEO), John C. Lechleiter (CEO of Eli Lily and Company), Elizabeth Comstock (CMO of GE), Phyllis Wise, Douglas Houser, John Thompson Jr., John Connors and Johnathan Rodgers. Three of the directors hold CEO positions at other companies. There is also one Chief Financial Officer and one Chief Marketing Officer at other companies. Since Nike is such a largely traded and global company, most if not all of the members on the board of directors hold relatively large stock holdings. 3. Bondholder Concerns

Nike does have publically traded debt, although the exact amount is not published. Nike has several bond covenants that have been imposed in order to protect bondholders against poor management decisions. These covenants include limits on the disposal of fixed assets, the amount of debt secured by liens the company may...
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