P&G CEO's total pay down 6.1 percent after tough year
Aug 24 (Reuters) - Procter & Gamble Co Chairman and Chief Executive Bob McDonald took home a little less last year as his compensation fell after disappointing results that he is trying to reverse with a major overhaul.
McDonald, the leader of the world's largest household products company since 2009, earned 6.1 percent less in fiscal 2012, which ended in June. His total earnings of nearly $15.2 million were down from $16.19 million in the previous year, according to a filing P&G made with the U.S. Securities and Exchange Commission on Friday.
P&G, whose brands include Pampers, Gillette and Tide, is in the midst of a $10 billion restructuring. On top of that, activist investor William Ackman bought roughly $1.8 billion worth of its stock this summer. While Ackman has not yet pushed for any changes at the company, P&G's board in July came out in support of McDonald and his turnaround plan.
In June, P&G took the blame for a lack of big new products and not being quick enough to cut costs as demand slows in some major markets. McDonald said it would take time to reverse the negative trends and that he expected little improvement in fiscal 2013, which began on July 1.
McDonald's salary was flat in fiscal 2012 at $1.6 million. With about 89 percent of his total pay tied to the company's performance, his overall payout declined as P&G's results came in below target. His bonus fell by $200,000, to $2.43 million. Most of his compensation was stock and option awards.
Chief Financial Officer Jon Moeller made a little bit more in fiscal 2012. His salary increased $75,000 to $825,000, the latest in a steady stream of increases since he became CFO in 2009.
Moeller's bonus declined, falling to $762,127 from $781,121.
Shares of P&G closed at $66.68 on Thursday. The shares fell 3.6 percent to $61.25 during fiscal 2012.