Following an internal review, Nike will raise the salaries of more than 7,000 employees and change annual bonus packages for its global staff. The move comes shortly after female employees complained of gender discrimination and harassment, thus leading to the resignation of several senior managers at the company.
In a memo circulated to staff on July 23, the company explained that the pay increases were meant to preserve a corporate culture in which “employees feel included and empowered.” Although Nike reviews its employee compensation annually, this year it paid closer attention to “all roles, at all levels globally” and found cause to make necessary adjustments.
The salary hike is one of many steps Nike has taken since their own #MeToo scandal earlier this year. The company is also investing additional resources in programs designed to ensure leadership accountability and diversity hiring.
“In early 2018, we became aware of reports of behavior within our organization that did not reflect our core values of inclusivity, respect, and empowerment,” Nike said in a report in May. “We now recognize this is not only about culture and leadership, but also about institutional bias and practices that haven’t kept pace.”
The pay changes would affect about 10% of its 74,000 employees worldwide.
These actions signal Nike’s attempts at resolving this PR crisis and bolstering its corporate reputation. The athletic brand ranked #12 in The Harris Poll’s latest Reputation Quotient survey and Americans especially appreciated the brand for its emotional appeal (#8) and financial performance (#9). It remains to be seen how far their recent efforts will go in salvaging and preserving their current good standing in the eyes of American consumers.