Nike shareholders reject climate disclosure bid, back $36m pay package for CEO

Nike shareholders have voted to reject a proposal calling for greater transparency on the company’s 2030 emissions-reduction targets, siding with the board over a recommendation from Norway’s sovereign wealth fund. The vote, held on 8 September, allows CEO Elliott Hill and his team to prioritise product innovation, sales recovery, and market-share gains without the immediate constraint of expanded climate reporting.

Norges Bank Investment Management, which ranks as Nike’s 11th-largest shareholder, had supported the failed climate proposal. The board recommended a “no” vote, asserting that management is best positioned to determine the appropriate targets and related disclosures. By rejecting the resolution, shareholders effectively granted the executive team more flexibility to direct resources toward restoring growth and profitability during a challenging period for the brand.

In the same vote, shareholders approved the company’s executive compensation package, including more than $36 million in total compensation for Hill for fiscal 2026. The approval came despite opposition from institutional investors and major proxy advisers, signalling support for Nike’s leadership as it works to stabilise sales and rebuild its market position.

The decision occurs against a backdrop of significant operational challenges. Nike’s stock price has fallen approximately 40 per cent in 2026, reflecting slumping sales and lingering scepticism over Hill’s turnaround strategy nearly two years into his tenure. The company’s hedge fund count also decreased to 56 in the second quarter from 71 in the first, although the total position value of these funds rose slightly to $1.35 billion from $1.31 billion.

Nike has reported measurable progress toward its environmental goals, which may limit the immediate financial impact of the rejected proposal. In fiscal 2024, the company reported an 11 per cent reduction in supply-chain emissions from its 2015 baseline. Its 2030 targets include a 65 per cent reduction in operational emissions and a 30 per cent reduction across its supply chain.

However, the rejection of the disclosure proposal may not resolve all investor concerns. Nike replaced detailed climate initiative information in its 2024 impact report with a narrower set of emissions and waste data, a move that has prompted some investors to question the company’s commitment to its environmental goals. With the broader market shifting sentiment towards AI stocks, Nike must deliver real operational wins to maintain investor trust while managing potential reputational and regulatory risks.