P&G CEO's pay down 6.1 percent after tough year

Fri Aug 24, 2012 9:47am EDT
 
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(Reuters) - Procter & Gamble Co (PG.N: Quote) Chairman and Chief Executive Officer Bob McDonald took home a little less last year after disappointing results that he is trying to reverse with a major overhaul.

McDonald, the leader of the world's largest household products company since 2009, earned nearly $15.2 million in the year ended in June, down 6.1 percent from $16.19 million in fiscal 2011, according to a filing P&G made with the U.S. Securities and Exchange Commission on Friday.

P&G, whose brands include Pampers, Gillette and Tide, is in the midst of a $10 billion restructuring. On top of that, activist investor William Ackman bought roughly $1.8 billion worth of its stock this summer. While Ackman has not yet pushed for any changes at the company, P&G's board came out in July in support of McDonald and his turnaround plan.

In June, P&G took the blame for a lack of big new products and not cutting costs fast enough as demand slows in some major markets. McDonald said it would take time to reverse the negative trends and that he expected little improvement in fiscal 2013, which began on July 1.

McDonald's salary was flat in fiscal 2012 at $1.6 million. With 89 percent of his total pay tied to the company's performance, his overall payout declined as P&G's results came in below target. His bonus fell by $200,000, to $2.43 million.

Most of McDonald's compensation comes in stock and option awards. Their combined value fell 8 percent to $10.85 million.

Shares of P&G were down 0.3 percent at $66.49 in early trading. The shares fell 3.6 percent to $61.25 during fiscal 2012.

SOME COMPENSATION INCREASES

Chief Financial Officer Jon Moeller made a little bit more in fiscal 2012. His salary rose by $75,000 to $825,000, the latest in a steady stream of increases since he became CFO in 2009.   Continued...

 
Bob McDonald, chairman and chief executive officer of Procter & Gamble, speaks during a discussion regarding famine in Africa at the Clinton Global Initiative in New York September 22, 2011. REUTERS/Lucas Jackson