P&G ceo’s pay falls 6.1%

Robert McDonald, chairman and ceo of Procter & Gamble Co, took home $15.2m in the year ended 30 June 2012, a 6.1% decline on the $16.19m he earned in fiscal 2011, in the wake of disappointing results.

McDonald’s salary was flat in fiscal 2012 at $1.6m. But as 89% of his total pay is tied to the company’s performance his overall payout declined, as P&G reported a 9% decline in net income in the year to 30 June. McDonald’s cash based bonus was down 8% and he received stock options that were valued at 29% less than in 2011. In addition, although his stock awards rose 15% to $6.45m McDonald failed to receive a performance based cash bonus for a second year in a row.

In a bid to reverse its fortunes P&G intends to prioritise investments in bringing new products to market, and growing its biggest markets and emerging countries.