Aug 23 Procter & Gamble Co said on Friday
it paid Bob McDonald, the former chairman, president and chief
executive who abruptly left last spring, nearly 5 percent more
last year as the company's performance improved.
McDonald was replaced in P&G's top spot on May 23 by his
predecessor, A.G. Lafley. While McDonald's departure was termed
a retirement, many saw the change as confirmation that his
tenure was a disappointment and that the world's largest
household products maker needed Lafley to reassure investors and
McDonald earned a $3.3 million bonus in fiscal 2013, up from
$2.4 million a year earlier, when P&G started a major
Lafley earned almost $2 million as he took the helm for the
last few weeks of the fiscal year, including salary, bonus and
cash instead of stock and option awards, according to the P&G
In the fiscal year that ended in June, largely overseen by
McDonald, P&G started to rebound with gains in market share.
The company met or exceeded targets that are factored into
executives' compensation. Fiscal 2013 core earnings per share
rose 5 percent, exceeding the company's forecast of a decline of
1 percent to an increase of 4 percent.
Free cash flow productivity also exceeded its goal, and
organic sales rose 3 percent, the midpoint of P&G's forecast of
2 percent to 4 percent. Organic sales exclude the impact of
acquisitions, divestitures and foreign exchange.
In fiscal 2012, P&G issued profit warnings and McDonald
admitted the company was too slow to react to thriftier shopping
habits, create product hits, and expand in fast-growing
McDonald's salary was flat at $1.6 million and his
longer-term compensation was relatively unchanged. Overall, he
took home more than $15.9 million, up from nearly $15.2 million
the year before.
From May 23 to June 30, Lafley earned $1.94 million. He took
home an additional $94,000 for consulting work during the year
before he came back as CEO, bringing his total compensation to
nearly $2.04 million, P&G said.