Nike (NKE)

Base Salary

When making recommendations to the Committee concerning base salary levels for our Named Executive Officers, our human resources staff considers the market data described above to recommend base salaries generally between the 25^th and 75^th percentiles of the salaries for comparable positions reflected in the surveys and reports. Other factors considered in setting annual salary levels include the individual’s performance in the prior year, expectations regarding the individual’s future performance, experience in the position, any anticipated increase in the individual’s responsibilities, internal pay equity for comparable positions, and succession planning strategies. The Committee reviews these factors each year and adjusts base salary to make sure that we are appropriately rewarding performance. In setting a Named Executive Officer’s overall compensation package for the year, however, the Committee attempts to place a relatively greater emphasis on the incentive components of that compensation, than on base salary.

The Committee generally reviews and adjusts base salaries annually based on a review of individual performance at a meeting in June, with salary adjustments becoming effective for the first pay period ending in August. During the fiscal 2009 salary review in June 2008, the Committee decided to increase Mr. Parker’s base salary from $1,400,000 to $1,475,000, to reflect his individual performance of goals and objectives established by the Committee, and the Company’s performance of long-term strategic initiatives and financial targets for fiscal 2008. The Committee decided to increase Mr. Denson’s base salary from $1,200,000 to $1,260,000, Mr. Blair’s base salary from $750,000 to $810,000, Mr. DeStefano’s base salary

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from $965,000 to $1,000,000, and Mr. Edwards’ base salary from $775,000 to $810,000 per year. The increases for Messrs. Parker, Denson, DeStefano, and Edwards were generally in line with average Company-wide merit increases for fiscal 2009, while Mr. Blair’s salary was increased due to the level of his contributions relative to executive peers.

Base Salary

When making recommendations to the Committee concerning base salary levels for our Named Executive Officers, our human resources staff considers the market data described above to recommend base salaries generally between the 25th and 75th percentiles of the salaries for comparable positions reflected in the surveys and reports. Other factors considered in setting annual salary levels include the individual’s performance in the prior year, expectations regarding the individual’s future performance, experience in the position, any anticipated increase in the individual’s responsibilities, internal pay equity for comparable positions, and succession planning strategies. The Committee reviews these factors each year and adjusts base salary to make sure that we are appropriately rewarding performance. In setting a Named Executive Officer’s overall compensation package for the year, however, the Committee attempts to place a relatively greater emphasis on the incentive components of that compensation, than on base salary.

The Committee generally reviews and adjusts base salaries annually based on a review of individual performance at a meeting in June, with salary adjustments becoming effective for the first pay period ending in August. During the fiscal 2008 salary review in June 2007, the Committee decided to increase Mr. Parker’s base salary from $1,250,000 to $1,400,000, because of his strong performance, increasing experience in the position, and to more closely align his salary with comparable salaries for CEO positions

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at our peer group of companies. The Committee decided to increase Mr. Denson’s base salary from $1,150,000 to $1,200,000, Mr. Blair’s base salary from $685,000 to $750,000, and Mr. DeStefano’s base salary from $925,000 to $965,000. The increases for Mr. Denson and Mr. DeStefano were generally in line with average company-wide merit increases for fiscal 2008, while Mr. Blair’s salary was further increased to more closely align his base salary with what the Committee believed to be comparable salaries for CFO positions at our peer group of companies. Mr. Edwards’ base salary was increased from $725,000 to $775,000 per year in connection with his increasing responsibilities in managing our key product categories.

Base Salary

When making recommendations to the Committee concerning base salary levels for our Named Executive Officers, our human resources staff considers the market data described above to recommend base salaries generally between the 25th and 75th percentiles of the salaries for comparable positions reflected in the surveys and reports. Other factors considered in setting annual salary levels include the individual’s performance in the prior year, expectations regarding the individual’s future performance, any anticipated increase in the individual’s responsibilities, and internal pay equity. The Committee reviews these factors each year and adjusts them to make sure that we are appropriately rewarding performance. In setting a Named Executive Officer’s overall compensation package for the year, however, the Committee attempts to place a relatively greater emphasis on the incentive components of that compensation, than on base salary.

The Committee generally reviews and adjusts base salaries annually at a meeting in June, with salary adjustments becoming effective for the first pay period ending in August. During the fiscal 2007 salary review in June 2006, the Committee decided not to increase Mr. Parker’s base salary, which remained at $1,250,000 for fiscal 2007. This was because Mr. Parker had already received a $150,000 salary increase effective January 23, 2006 in connection with his promotion to President and Chief Executive Officer. Mr. Denson’s salary also did not increase for fiscal 2007, because he had received a $100,000 salary increase effective January 23, 2006 in connection with his promotion to sole President of the NIKE Brand. The Committee decided to increase Mr. Blair’s base salary from $655,000 to $685,000, Mr. Stewart’s base salary from $715,000 to $745,000 and Mr. DeStefano’s base salary from $875,000 to $925,000. The increases for Mr. Blair and Mr. Stewart were in line with the average company-wide 4% merit increase for fiscal 2007, while Mr. DeStefano’s salary was further increased in connection with his promotion to President, Global Operations in August 2006.