CINCINNATI - Procter & Gamble Co. said in a regulatory filing this morning that returning CEO A.G. Lafley will make a $2 million base salary and be eligible for a bonus of up to $5 million annually. Lafley will receive a $1.6 million cash bonus for his work in the current fiscal year, which ends in June.
Ex-CEO Bob McDonald, who announced his retirement Thursday, received a $1.6 million base salary and $2.4 million in bonus awards last year. His last day will be June 30.
Analysts at Citigroup said they expect P&G to reduce its growth expectations for the 2014 fiscal year, which starts July 1. A summary of the Citigroup report says it maintains a buy rating on the stock and urges Lafley to bring back some former P&G executives who left the company in recent years.
In a conference call Friday morning, Chief Financial Officer Jon Moeller stressed that P&G is not changing its profit outlook for the current quarter and fiscal year. He said the company will discuss its 2014 profit outlook in July.
"This announcement is not indicative of any kind of bigger problem or financial issue," Moeller said. "This won’t result in a dramatic change in our strategy or priorities. We’ll continue to focus on maintaining momentum in developing markets and building and strengthening our core developing market business, all supported by innovation and productivity. We remain committed to those priorities and continue to be optimistic."
P&G shares opened at $81.91, up 4 percent from yesterday's close. It peaked at $82.30 and remained above $81.50 all morning.
Bob McDonald's son, Cincinnati attorney Rob McDonald, tweeted a congratulations to his father last night for "his amazing 33 year career. Couldn't be more proud of his leadership and tenure." Rob McDonald works for the Taft law firm and is active in Cincinnati's startup community. He received a tweet from University of Cincinnati President Santa Ono last night.
"So much for you you and your dad to be proud of. Honored to serve in the same community with you two," Ono wrote.
"Many thanks," Rob McDonald responded. "Thrilled to have your leadership at the #hottestcollegeinamerica!"
For a Q&A with A.G. Lafley, click here: http://www.wcpo.com/dpp/money/business_news/lafley-qa-former-pg-ceo-talks-corporate-strategy-in-new-book