Nike NYSE:NKE employees are set to receive smaller-than-target bonus payouts after a challenging year that continued to weigh on company performance. In a memo reviewed by Bloomberg News, CEO Elliott Hill told employees that the results are not where we need them to be yet, with global employees receiving 74% of their target bonus.
The payout gap also shows where Nike could still be under pressure. North America employees are set to receive 92% of their bonus after the company gained ground in the region, while Greater China employees are set to receive 56% as that market remained a persistent problem area.
For investors, the bonus update lands as Nike's turnaround still appears uneven. The company reported revenue that beat expectations on Tuesday, but the stock still fell after executives said sales will decline over the coming months. Shares rose 4.6% on Wednesday, though the stock had fallen 36% in the first six months of the year, trailing the S&P 500 Index's almost 10% gain. Separately, Converse employees were told future bonuses would no longer be tied to Nike's results and would instead reflect Converse's own brand performance.