RSUs vs. Stock Options: How Nike Employees Should Think About This Year’s $NKE Stock Choice
Every year, Nike employees face a decision that feels deceptively simple: RSUs or stock options? For many, it's easy to default to what you chose last year, or to let the current NKE share price drive the decision. But the right answer looks different depending on where you are in your financial life.
What You're Actually Deciding
During the stock choice window, Nike employees choose how to receive a portion of their equity compensation. You can elect to receive:
RSUs (Restricted Stock Units): A set number of shares that vest over time. You know what you're getting, and when.
Stock Options: The right to purchase NKE shares at a set price in the future. If the stock rises above that price, you benefit. If it doesn't, the options may expire worthless.
Half of each: A combination of the two, at 50% RSUs and 50% stock options.
What's Happening With NKE Right Now
It's hard to ignore the share price. As of publishing, NKE is sitting at $42.77, down 32% year to date. Over the last five years, NKE has dropped significantly, and if you've been watching, you may be wondering whether now is actually a good time to load up on options while the price is low.
That instinct is understandable. But it's worth separating the stock choice decision from a market prediction. Even great companies can face extended periods of underperformance. Tariffs, supply chain disruptions, changing consumer preferences: Nike has navigated all of these recently, and nobody predicted the depth of the decline.
While recent share price performance has been challenging, opinions about Nike's long-term outlook remain mixed. Some investors believe operational improvements could support future growth and build internal momentum, while others remain cautious given broader economic conditions such as broader investor buy-in. Ultimately, future stock performance is uncertain.
Rather than trying to predict where Nike's stock price will go next, the more important question is whether your financial plan is designed to accommodate the level of risk you're comfortable taking.
Three Scenarios: Which One Sounds Like You?
Every situation is different. We profiled three common employee stock choice scenarios in this piece if you want to see how others in similar situations have thought through it. Otherwise, here's a quick framework to find yourself:
You might choose 100% Stock Options if:
You don't anticipate needing cash in the next few years
You believe NKE will recover and increase over time
You're comfortable with the possibility of walking away with nothing if it doesn't
You already have strong cash flow and financial stability outside of your equity compensation
You might choose 100% RSUs if:
You need a reliable source of income or liquidity in the near future
You prefer certainty over upside potential
You consider yourself a more risk-averse investor
You might choose a 50/50 split if:
You want some certainty but aren't ready to walk away from potential upside
Your financial plan is in good shape, but you want to hedge both directions
You find yourself genuinely torn between the two
You Might Already Own More Nike Than You Think
Whichever you choose, it's worth stepping back and looking at your total NKE exposure. Between your stock choice, prior RSU vests, ESPP participation, and any shares you've held onto, Nike may already represent a significant portion of your net worth.
That's not necessarily a problem, but it's worth knowing. We believe successful long-term investing tends should be diversified, low-cost, and unglamorous. Some might call it boring. If you want to maintain some Nike exposure without feeling overly concentrated, many large-cap index funds already hold NKE as a position. You get to participate in the upside in a more measured way.
Your Next Step
The best way to get a concrete answer to what you should select for your stock choice this year is to review this decision in conjunction with your comprehensive financial plan. Cash flow, upcoming expenses, existing NKE exposure, risk tolerance — all of it factors in.
If you’re still asking yourself, should I choose stock options this year or are unsure where to go next, we’d be happy to help you make your decision.
Disclosure: Human Investing is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. This content is for informational and educational purposes only and does not constitute personalized investment advice or a recommendation. Past performance is not indicative of future results. All investments carry risk, including potential loss of principal. Readers should consult with a qualified professional regarding their specific financial situation. The examples discussed above are hypothetical and are intended solely for educational purposes. Individual circumstances will vary.
