CINCINNATI - Procter & Gamble Co. has spent $1.6 billion on restructuring initiatives announced since November, 2011, including $918 million for employee separation packages. Figures disclosed in P&G’s quarterly report show the company paid an average of $159,652 to the 5,750 employees who departed through the end of 2012.
P&G has not released the number of local employees who accepted early retirement, but its 12,000 Tri-State employees represent about 10 percent of the company’s global work force. So, the number of local retirees is likely above 500.
“Many of us are finding there’s a big life after P&G,” said Steven Pentelnik, a 35-year Procter veteran who left his research job last June. He is building a new medical device company, Intellimed Systems LLC, which is developing a 3-dimensional scanner that doctors can use to track a patient’s wound-healing process over time. Pentelnik said his separation package will cover his family’s health care and ongoing expenses, giving his new venture time to develop.
Company officials said last week that P&G is likely to complete the restructuring four to five months ahead of schedule. Pentelnik praised his former employer for doing the job quickly but without rushing him into a decision.
“P&G has done this the right way,” he said. “They’ve done it with professionalism.”
An investment advisor who caters to P&G clients said he’s heard similar praise from other departing executives.
“Many of them feel good about the opportunity to be able to transition,” said Dan Torbeck, a senior vice president in the Kenwood office of UBS Financial Services. Torbeck is also a partner in FTB Group at UBS, a P&G-focused investment advisory firm that gained about 50 new clients from P&G departees.
“It certainly helps that the stock price is sitting at $74," he said. "I don’t know if that would be the case if the stock was back in the low 60s again.”
P&G shares (NYSE:PG) have jumped more than 7 percent since Friday, when the company announced better than expected earnings - driven in part by cost savings achieved in the restructuring. Shares reached a peak of $75.31 Tuesday, the highest level since December 2001.
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