diff --git a/src/components/sticky/sticky.scss b/src/components/sticky/sticky.scss
index b11b4118cfd..d116a93f205 100644
--- a/src/components/sticky/sticky.scss
+++ b/src/components/sticky/sticky.scss
@@ -9,10 +9,8 @@
 
   &[sticky-state="active"] {
     transform: translate3d(0, 0, 0);
-    &:not(.md-sticky-no-effect) {
-      &:after {
-        animation: subheaderStickyHoverIn 0.3s ease-out both;
-      }
+    &:not(.md-sticky-no-effect) .md-subheader-inner {
+      animation: subheaderStickyHoverIn 0.3s ease-out both;
     }
   }
 }
diff --git a/src/components/subheader/subheader.js b/src/components/subheader/subheader.js
index 233f06beb0f..a7c899efceb 100644
--- a/src/components/subheader/subheader.js
+++ b/src/components/subheader/subheader.js
@@ -50,7 +50,9 @@ function MdSubheaderDirective($mdSticky, $compile, $mdTheming) {
     transclude: true,
     template: 
       '<h2 class="md-subheader">' +
-        '<span class="md-subheader-content"></span>' +
+        '<div class="md-subheader-inner">' +
+          '<span class="md-subheader-content"></span>' +
+        '</div>' +
       '</h2>',
     compile: function(element, attr, transclude) {
       var outerHTML = element[0].outerHTML;
diff --git a/src/components/subheader/subheader.scss b/src/components/subheader/subheader.scss
index 41818733b05..a3fe2d1af38 100644
--- a/src/components/subheader/subheader.scss
+++ b/src/components/subheader/subheader.scss
@@ -28,11 +28,14 @@ $subheader-sticky-shadow: 0px 2px 4px 0 rgba(0,0,0,0.16) !default;
   font-size: $subheader-font-size;
   font-weight: $subheader-font-weight;
   line-height: $subheader-line-height;
-  padding: $subheader-padding;
   margin: $subheader-margin;
   margin-right: $subheader-margin-right;
   position: relative;
 
+  .md-subheader-inner {
+    padding: $subheader-padding;
+  }
+
   &:not(.md-sticky-no-effect) {
     &:after {
       position: absolute;
@@ -50,7 +53,7 @@ $subheader-sticky-shadow: 0px 2px 4px 0 rgba(0,0,0,0.16) !default;
     &[sticky-state="active"] {
       margin-top: -2px;
     }
-    &:not(.md-sticky-clone)[sticky-prev-state="active"]:after {
+    &:not(.md-sticky-clone)[sticky-prev-state="active"] .md-subheader-inner:after {
       animation: subheaderStickyHoverOut 0.3s ease-out both;
     }
   }