Aug 24 Procter & Gamble Co Chairman and Chief Executive Officer Bob McDonald took home a little less last year 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 nearly $15.2 million in the year ended in June, down 6.1 percent from $16.19 million in fiscal 2011, 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 came out in July in support of McDonald and his turnaround plan.
In June, P&G took the blame for a lack of big new products and not cutting costs fast enough 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 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 McDonald's compensation comes in stock and option awards. Their combined value fell 8 percent to $10.85 million.
Shares of P&G were down 0.3 percent at $66.49 in early trading. The shares fell 3.6 percent to $61.25 during fiscal 2012.
SOME COMPENSATION INCREASES
Chief Financial Officer Jon Moeller made a little bit more in fiscal 2012. His salary rose by $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.
P&G's two vice chairmen earned more in the latest fiscal year after taking on expanded roles following the departures of two other vice chairmen, Edward Shirley and Robert Steele.
Werner Geissler, vice chairman of global operations, earned a total of nearly $6.9 million, up from $6.3 million in fiscal 2011. His salary rose $100,000 to $1.045 million.
Dimitri Panayotopoulos, vice chairman of global business units, earned $6.9 million, up from nearly $6.3 million. His salary also increased by $100,000, to $1.085 million.
The company plans to hold its annual meeting on Oct. 9 in its hometown of Cincinnati. P&G recommend votes against three shareholder proposals outlined in the filing.
The first proposal asks P&G to begin including a proposal outlining any electioneering and political contributions in its proxy for the annual meeting. The second asks for a report on the feasibility of increasing environmental efforts such as recycling packaging, and the third asks for P&G to adopt a simple majority vote.
P&G said that most of what was being asked for in the simple majority vote proposal was already implemented.