Nike Employee Benefits

Avier Wealth Advisors is not affiliated with Nike. While Avier communicates with its clients regarding their Nike employee benefits, and educates itself on the Nike Benefits, there is no guarantee that the information we have provided is accurate. Nike employees are encouraged to contact their employer should they have any questions regarding their specific employee benefits.

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Nike New Hire Compensation

Nike employees are compensated in 3 different ways:

Base salary

This is very straight-forward, your base salary is paid out bi-weekly. Base salaries vary greatly and are dependent on your role within the company.

Annual Cash Bonus

Known as the Performance Sharing Plan (PSP) bonus. The annual bonus day is highly anticipated by Nike employees – it is when qualifying employees are typically rewarded 5% – 30% of their annual pay in one lump sum.

Stock Grants

These come in two forms: Restricted Stock Units (RSUs) and Stock Options.

Stock Awards

Restricted Stock Units vest 25% over 4 years. Employees who are granted RSUs will receive 25% of their vest in year one and another 25% in year two, year three, and year four. This vesting schedule can create a cascade of RSUs to manage due to the addition of new vesting RSUs each year.


Typically, employees let their stock awards accumulate in their investment accounts while covering expenses through their salaries.

We encourage you to flip this thinking and recommend you sell your shares as soon as they vest. There are two advantages using is this strategy:

Living off of vesting shares of stock can provide you more cash-flow flexibility and enable you to take advantage of the many tax-preferred benefits available to you (401(k), HSA, Deferred Compensation).

Immediately selling your stock awards upon vesting will help you avoid building up a concentrated position of NKE stock with embedded capital gains.

Nike 401(k) and Employer Match

In 2022 you can contribute up to $ 20,500 per year if you’re under 50. Employees who are 50 years old and older can contribute an additional $6,500 a year ($27,000 total).

The Nike 401(k) is a retirement savings plan that allows employees to invest a portion of their salary into long-term investments and save for their retirement.

Nike will match 5% of your annual salary as long as you contribute at least that amount to your 401(k).  You will want to make sure you are contributing at least 5% of your salary to ensure you receive the match from Nike.

The tax benefits associated with a 401(k) plan include being able to make deductions from your salary on a pre-tax basis. This can lower your annual taxable income. Your 401(k) earnings accrue on a tax-deferred basis, meaning the dividends and capital gains accumulating within your plan are not subject to tax until they are withdrawn at retirement. Many people are in a lower tax bracket when they retire which compounds the tax reduction benefit of saving into a 401(k).

There are two ways employees can contribute to their Nike 401(k):

Traditional Pre-Tax 401(k): Make contributions before taxes. You get a tax break up front, lowering your current income tax bill; however, money withdrawn at retirement will be taxed.

Roth 401(k): Make contributions after taxes. With this option, when you withdraw savings for retirement, you are not taxed.

Nike Mega Backdoor Roth

The Mega Backdoor Roth allows you to save even more for your retirement and reduce some of your future tax liabilities.  We encourage you to contribute the maximum amount to your 401(k) before contributing to the Mega Backdoor Roth. This way, you receive the full employer match on the first $20,500 you contribute.

The Mega Backdoor Roth allows employees to contribute after–tax dollars to their 401(k) and convert those dollars to a Roth. This process is not automatic—you will need to call the Nike 401(k) phone line to request the conversion.

Nike allows you to contribute up to 3% ($8,700 maximum) of their base salary to the Mega Backdoor Roth.

Nike’s Deferred Compensation Program

Deferred Compensation is an opportunity to save and invest dollars on a pre-tax basis, similar to your 401(k). Contributions to your DCP reduce taxable income in the year of the deferral and can be invested into a selection of investment options.

Nike employees may elect to defer up to 75% of their annual salary. Employees may also elect to defer up to 100% of their PSP Bonus for the following year, bonus deferrals must be made at least 18 months before payout.

Deferred Compensation is different than a 401(k) where you’re able to withdraw money early (with penalty) or wait until retirement to withdraw funds until they are depleted. DCP requires more advanced planning to ensure your money comes out on time, at the right time, and in amounts that make sense for you.

As money is distributed, the dollars are taxed as ordinary income, so it’s important that you consider how much taxes you’re willing to pay each year after your withdrawal begins and to structure the payouts accordingly.

Employee Stock Purchase Plan (ESPP)

The Nike ESPP enables employees to purchase Nike stock at a 15% discount. Your contributions to this program, come from payroll deductions, much like your 401(k) contributions. However, unlike pre-tax 401(k) contributions, ESPP contributions are taken out on an after-tax basis. Employees can designate up to 10% of their salary with a lesser of 500 shares or $25,000 per year.

There are two windows per year that employees can purchase Nike stock. The first runs from April 1st through September 30th and the second window goes from October 1st through March 31st.

Your price is the better of a 15% discount off the offering price or a 15% discount from when you purchased it. You can sell these shares immediately, or you can wait for 2 years and sell when they would qualify as long-term capital gains.

Other Benefits

Charitable Giving

Employees can utilize the Give Your Best platform to help their donations go even further. Nike and the Nike Foundation match donations to schools and charitable organizations up to $25,000 per year, per employee. And when employees volunteer, they receive a $10 credit per hour, up to $2,500 per calendar year, to donate to their cause of choice.[1]

Health Savings Account

Nike offers its employees the option to enroll in a Health Savings Account (HSA). The HSA comes with three significant tax benefits: contributions are tax-free, money grows tax-deferred, and you can withdraw money tax-tree if the funds are used for qualified medical expenses.

Latest Articles About Your Nike Benefits

The Nike Mega Backdoor Roth: How Does it Work?

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