Procter & Gamble CEO Bob McDonald
Hide Caption

Procter & Gamble Co. delivers $15.9 million to former CEO Bob McDonald

New CEO A.G. Lafley gets $2 million for one month

a a a a
Share this story

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.

Copyright 2013 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Print this article

Comments

Hmm... It looks like you’re not a WCPO Insider. or Subscribe now to contribute!

More P&G News
WCPO Analysis: Tax bills of Cincinnati companies
WCPO Analysis: Tax bills of Cincinnati companies

WCPO asked S&P Capital IQ to help us analyze how much Cincinnati companies pay in taxes. How much did your favorite company pay? The…

Choremonster launches new app and strategy
Choremonster launches new app and strategy

Choremonster is launching a new version of its app, which parents can use to give their kids rewards for doing household chores.

Protesters likely got in via auxiliary building
Protesters likely got in via auxiliary building

Procter & Gamble says it is improving security after a simple entry set off an elaborate, well-orchestrated demonstration on the…

From Greenpeace to PETA: Why P&G is targeted
From Greenpeace to PETA: Why P&G is targeted

Activists describe what it's like to engage the Ivory Empire in a public relations battle.

Cincinnati companies on a buying binge
Cincinnati companies on a buying binge

Some experts are predicting a breakout year for mergers and acquisitions. Cincinnati-based companies have no intention of missing out. 

P&G raising Tide prices in stealthy way
P&G raising Tide prices in stealthy way

P&G is increasing the cost on some fancier Tide varieties by as much as 25 percent to compensate for the introduction of a lower-end…

The next place to tattoo: Your hair?
The next place to tattoo: Your hair?

Fourteen months ago, Procter & Gamble promised "disruptive solutions" would emerge from a retooling of its research and…

P&G brand puts new twist on Super Bowl ad hype
P&G brand puts new twist on Super Bowl ad hype

Did you hear about the Old Spice Super Bowl contest? P&G brand puts a new twist on Super Bowl commercial hype.

P&G introduces dessert-flavored toothpastes
P&G introduces dessert-flavored toothpastes

Combining dessert and oral hygiene might not seem like an ideal pairing, but Procter & Gamble Co. would disagree.

Hey ladies: New P&G beauty products aimed at you
Hey ladies: New P&G beauty products aimed at you

Procter & Gamble is starting the year with a host of new beauty products, aimed at reversing a slump in market share and sales growth.

Market Summary
The Dow Jones Industrial Average SM is proprietary to and is calculated, distributed and marketed by Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC and have been licensed for use. "Dow Jones(r)", "Dow Jones Indexes" and "Dow Jones Industrial Average SM" are service marks of Dow Jones Trademark Holdings, LLC. "CME" is a trademark of Chicago Mercantile Exchange Inc. All content of the Dow Jones Industrial Average (c) CME Group Index Services LLC 2010.