Nike Equity FAQ

Nike RSUs vest annually over 4 years at 25% per year. Vesting typically occurs in September each year. When your RSUs vest, you'll also receive Dividend Equivalent Payments for any dividends paid during the vesting period.

Nike's ESPP offers a 15% discount on stock purchases with a lookback provision. You can contribute up to 10% of your salary (maximum $25,000 annually) through payroll deductions. Enrollment occurs semi-annually in March and September, with offering periods starting April 1 and October 1.

You have 90 days after leaving Nike to exercise your vested stock options. Options expire 10 years from the grant date. Early exercise is not allowed at Nike, so plan your departure timing carefully if you have valuable vested options.

Nike withholds 22% by default for federal taxes when RSUs vest. However, this may not cover your full tax liability—you could face a shortfall of up to 17% depending on your tax bracket, since the supplemental wage rate can be as high as 37%. Plan accordingly to avoid a surprise tax bill.

To qualify for favorable tax treatment on ESPP shares, you must hold them for at least 2 years from the offering date AND 1 year from the purchase date. Meeting both requirements allows you to pay long-term capital gains rates on a portion of your profit rather than ordinary income tax rates.

Yes, Nike matches 100% of your contributions up to 5% of your salary, and the match vests immediately. Nike also offers a Mega Backdoor Roth option allowing you to contribute an additional 3% of your annual salary (capped at $9,900 in 2023) in after-tax contributions that can be converted to Roth.

Generally, unvested RSUs and stock options are forfeited when you leave Nike. However, if you qualify for Special Retirement Vesting (age 55+ with 5 years of service), your unvested options continue vesting over 4 years if you held them for at least 1 year before leaving. If you're age 60+, unvested options vest immediately upon separation.

Each August, you can choose how to receive your annual equity grant: 100% RSUs, 100% stock options (NSOs), or a 50/50 mix. Keep in mind that if you choose RSUs over options, you'll typically receive fewer shares since options are generally granted at a 4:1 ratio compared to RSUs.