The Procter & Gamble Company (PG) Raised ex-CEO’s Pay to $15.9 Million for Last Year

In fiscal 2014, The Procter & Gamble Company (NYSE:PG) expects earnings excluding one-time items to rise 5% to 7%, implying results of $4.25 to $4.33 per share. It expects revenue to rise 1% to 2%, implying revenue of $85 billion to $85.85 billion. Analysts expect earnings of $4.32 per share on slightly higher revenue of $86.47 billion.

The The Procter & Gamble Company (NYSE:PG) board committee’s report said it uses CEO pay at 25 other big companies, including Wal-Mart Stores, Inc. (NYSE:WMT), Colgate-Palmolive Company (NYSE:CL), Johnson & Johnson (NYSE:JNJ) and General Electric Company (NYSE:GE), as a guide in determining executive compensation.

The company notes that the majority of pay for its executives is tied to performance. The Procter & Gamble Company (NYSE:PG) looks at such measures as organic sales growth, which excludes acquisitions, and earnings-per-share growth.

The Associated Press formula calculates an executive’s total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.

The value that a company assigned to an executive’s stock and option awards for 2012 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. But the number is an estimate and what an executive ultimately receives depends on the performance of the company’s stock in the years after the awards are granted.

The article P&G Raised ex-CEO’s Pay to $15.9 Million for Last Year originally appeared on Fool.com is written by Associated Press.

The Motley Fool recommends Johnson & Johnson, Procter & Gamble, and Unilever. The Motley Fool owns shares of General Electric Company and Johnson & Johnson. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.