Procter & Gamble CEO defends plan at staid shareholder meeting

CINCINNATI, Tue Oct 9, 2012 – Procter & Gamble Co.’s CEO stood behind the company’s plan for increasing profit and sales at a drama-free annual meeting notable for the absence of William Ackman, the activist investor who has pushed hard for change in recent months at the world’s largest maker of household products.

Chief Executive Bob McDonald defended the strategy of developing major new products while the company at the same time seeks to cut $10 billion in costs.

Tuesday’s meeting, held in P&G’s hometown of Cincinnati, came as something of a respite for McDonald months after Ackman’s Pershing Square Capital Management took a stake in P&G, putting pressure on the CEO and the board to improve performance.

McDonald, who has been at the helm since July 2009, is refocusing on core categories, countries and innovations with both the $10 billion restructuring and a strategy laid out in June that homes in on the company’s 40 biggest businesses, 20 biggest new products and 10 key developing markets.

Ackman, who disclosed his stake in the maker of Tide detergent and Crest toothpaste too late to have any proposals on the agenda, was not in attendance, and only one shareholder referred to him, asking why it took the investment of an activist to boost P&G’s stock.

“If we remain focused on the plan I talked about, the 40/20/10 plan, with improved innovation from discontinuous innovation, with productivity improvement, then we are all convinced that shareholders will get an increase in value and the stock will reflect that,” McDonald replied, without mentioning Ackman directly. “We are focused like a laser, we are holding our own feet to the fire to do this.”

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

CINCINNATI, Fri Aug 24, 2012 – Procter & Gamble Co. Chairman and CEO 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.