CINCINNATI - Procter & Gamble Co. awarded a 4.8 percent raise to departing CEO Bob McDonald in 2013, according to company’s annual proxy statement to shareholders released Friday.
McDonald’s $15.9 million in total compensation was boosted by a $3.3 million cash bonus, awarded in part because P&G exceeded its target for “core earnings per share growth,” a measure of profitability that excludes restructuring, mergers and other one-time events.
McDonald announced his resignation in May after enduring a year of criticism over the company’s lack of earnings growth and market-share losses. McDonald’s leading critic, New York hedge fund manager Bill Ackman, sold about two thirds of his 1 percent stake in P&G shares earlier this month.
P&G’s board issued statements supporting McDonald, whose resignation led to the return of former CEO A.G. Lafley. Procter shares are up 2.1 percent since the change.
The compensation data shows P&G directors thought well of McDonald’s performance. His $3.3 million bonus was 36 percent higher than last year’s $2.4 million award.
New CEO A.G. Lafley was paid just more than $2 million for the five weeks of work he logged in the 2013 fiscal year, which ended June 30. Chief Financial Officer Jon Moeller received a 9.7 percent raise to $5.9 million. Vice Chairmen Werner Geissler and Dmitri Panayatopolous each got raises of less than 3 percent.
P&G is asking shareholders to vote on a governance change that could make it easier for shareholders to remove a director or change the number of directors on the company’s board. Currently, it takes a super-majority vote of 80 percent of outstanding share to make such a change. P&G is urging shareholders to allow changes to be made with a simple majority vote. The proposal is a reaction to a vote at least year’s shareholder meeting, when an activist shareholder secured approval of a proxy proposal that advocated simple majority voting.