PSU Payout Drivers: Metrics and Design

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Nike’s fiscal 2026 to 2028 PSU design shows exactly how this works in practice. Two financial metrics, Adjusted Revenue and Adjusted EPS, each weighted 50%, are measured independently against their own threshold, target, and maximum growth-rate goals. The payout for each is calculated separately, then averaged together into a single total financial metric payout. Relative TSR only enters the picture after that number has been calculated. The modifier doesn’t add or subtract shares directly. It multiplies the financial metric payout by a factor set on a sliding scale: 75% if Nike’s three-year relative TSR ranks at or below the 25th percentile against its peer group, no adjustment at all if it lands between the 25th and 75th percentile, and 125% if it reaches the 75th percentile or above. A financial metric payout of 100% of target could resolve anywhere from 75% to 125% of target once the TSR modifier is applied, with the total capped at 200% regardless.