Departed P&G CEO made five percent more last year as bonus rose
By Jessica Wohl
(Reuters) - Procter & Gamble Co (PG.N: Quote) said on Friday it paid Bob McDonald, the former chairman, president and chief executive who abruptly left last spring, nearly 5 percent more last year as the company's performance improved.
McDonald was replaced in P&G's top spot on May 23 by his predecessor, A.G. Lafley. While McDonald's departure was termed a retirement, many saw the change as confirmation that his tenure was a disappointment and that the world's largest household products maker needed Lafley to reassure investors and employees.
McDonald earned a $3.3 million bonus in fiscal 2013, up from $2.4 million a year earlier, when P&G started a major restructuring.
Lafley earned almost $2 million as he took the helm for the last few weeks of the fiscal year, including salary, bonus and cash instead of stock and option awards, according to the P&G proxy filing.
In the fiscal year that ended in June, largely overseen by McDonald, P&G started to rebound with gains in market share.
The company met or exceeded targets that are factored into executives' compensation. Fiscal 2013 core earnings per share rose 5 percent, exceeding the company's forecast of a decline of 1 percent to an increase of 4 percent.
Free cash flow productivity also exceeded its goal, and organic sales rose 3 percent, the midpoint of P&G's forecast of 2 percent to 4 percent. Organic sales exclude the impact of acquisitions, divestitures and foreign exchange.
In fiscal 2012, P&G issued profit warnings and McDonald admitted the company was too slow to react to thriftier shopping habits, create product hits, and expand in fast-growing international markets. Continued...