CINCINNATI - David Taylor’s promotion to CEO led to an $8.3 million raise, but other members of the Procter & Gamble Co. leadership team took pay cuts in 2016, as the consumer-products giant slogged through another year of slow growth and restructuring.
Taylor’s $14.4 million pay plan was 136 percent bigger than his 2015 compensation. It included $10.25 million in stock awards and a $2.5 million bonus. The bonus included a “transformation factor” award that was intended to encourage “the entire leadership team to support multiple initiatives in several major areas,” said the company’s proxy statement to shareholders.
But cash bonuses for all of P&G’s top executives were negatively impacted by the company’s failure to meet growth goals of 1.5 percent for profits and organic sales, which excludes the impact of foreign exchange and divestitures. P&G grew organic sales by 1 percent in 2016, while earnings per share declined 1 percent.
Taylor’s 2016 pay also included $43,448 in security enhancements to his home and $130,880 for personal and use of the company’s aircraft. Although his total pay more than doubled, Taylor still made 21 percent less than the $18.3 million in total compensation for P&G’s former CEO, A.G. Lafley, in 2015.
When Taylor was promoted to the corner office last November, Lafley became P&G’s executive chairman, as the company finalizes its divestiture of 105 brands and revamps its global distribution and manufacturing system.
Lafley’s pay declined 45 percent to $10 million. He joined two other P&G executives in taking pay cuts. Chief Financial Officer Jon Moeller’s $6.8 million pay plan was 2.8 percent smaller than last year. Giovanni Ciserani, group president for P&G’s home, fabric and baby care segments, took an 18 percent pay cut to $5.8 million.