When Trevor Edwards officially walks away from Nike Inc. next month, having resigned under a cloud as president of the company’s namesake brand in March, he will leave $7.1 million in restricted stock awards on the table.
The official tally of Edwards’ pay in Nike’s proxy statement, filed with the Securities and Exchange Commission Wednesday, indicates his compensation rose to $9.8 million in fiscal 2018 from $5 million a year earlier.
But when Edwards’ retirement goes into effect in August, he will forfeit a $6 million retention award granted last year that took the form of restricted stock units. He will also give up $800,000 of $1.2 million in other restricted stock awards and $292,000 worth of another $875,000 tranche of awards.
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(The ultimate value of stock-based compensation can fluctuate and is dependent on the market value of the company’s shares and vesting schedules.)
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Factoring in the forfeitures, Edwards’ compensation for fiscal 2018 will have totaled $3 million, including a salary of $1.2 million.
Edwards was the first of a wave of departures at Nike, which were prompted by a series of complaints from employees.
Mark Parker, Nike’s chairman, president and chief executive officer, thanked Edwards for his service when he resigned, but later talked to Wall Street about the company’s efforts to “further evolve our culture and restructure our leadership.”
“We became aware of some behavioral issues that are inconsistent with Nike’s values of respect and empowerment,” Parker said. “I’m committed to ensure that we have an environment where every Nike employee can have a positive experience and reach their full potential.”
Nike appears to have retained its position as activewear powerhouse through the management troubles.
Brand Finance in March said Nike topped the list of the world’s most valuable apparel brands. But while the brand was valued at $28 billion, the consultancy did note a “significant drop” of 12 percent in Nike’s value, attributed to difficulties in the North American market and “challenges connected to inappropriate behavior among executives and managers.”
Parker, who has committed to staying on the job beyond 2020 and has been pushing Nike higher, saw his total compensation fall to $9.5 million last fiscal year, down from $13.9 million a year earlier.