Summary
NIKE, Inc. filed an 8-K on June 21, 2005, disclosing the Compensation Committee's approval of performance-based awards under the Company's Long-Term Incentive Plan for executive officers. These awards are tied to achieving specific revenue and earnings per share targets over defined periods, with payouts ranging from 0% to 150% of target amounts. The awards will vest fully at the payout date and can be received in cash, Class B Common Stock, or a mix of both, with a portion to satisfy tax withholding obligations payable in cash. Additionally, the filing notes the decision of Director Delbert J. Hayes not to seek re-election at the upcoming annual meeting, stating this decision is not due to any disagreement with the company. The report also includes forms for various incentive award agreements as exhibits, providing further detail on the structure of these compensation plans.
Key Highlights
- 1Approval of performance-based long-term incentive awards for executive officers, including named executive officers.
- 2Awards are contingent on achieving specific revenue and earnings per share (EPS) performance targets.
- 3Payouts range from 0% to 150% of the target award amount based on performance.
- 4Performance periods for awards generally span Fiscal Years 2006 to 2008.
- 5Payouts can be received in cash, NIKE Class B Common Stock, or a combination of both.
- 6Director Delbert J. Hayes will not stand for re-election at the 2005 annual meeting.
- 7The departure of Mr. Hayes is stated to be unrelated to any disagreements with the company or its management.