In a regulatory filing,
Procter & Gamble Company
) announced that the pay of its chief executive officer (CEO)
shrunk by 6.1% as the retail giant's performance in fiscal 2012
ended in June 2012 was below expectations.
CEO Robert McDonald received a compensation of $15.2 million in
fiscal 2012, lower than $16.2 million earned last year. The
compensation comprised salary, bonus, stock and options. While
salary of the CEO remained stable for the past three years; the
bonus, stock and options declined as a larger part of his pay was
tied to the company's performance.
Back in late June, the consumer goods giant had lowered its
sales and earnings outlook for the final quarter of fiscal 2012,
marking the second successive cut in the company's guidance in the
last three months. The guidance cut resulted from a slowing global
economy, sluggish market share growth in the developed countries
and China, and foreign exchange headwinds. The final results
announced in early August were almost in line with the lowered
Fourth quarter revenues declined 1%, largely due to foreign
exchange headwinds. Further, P&G witnessed sluggish growth in
the developed nations, principally in North America and Western
Europe, due to weak economic conditions and market share declines.
Earnings were flat with the prior-year levels, as benefits from
pricing and cost savings from restructuring activities were offset
by top-line shortfall and rising commodity costs.
P&G, which is known for its impressive product development
capabilities, has also failed to launch a break-through new brand
or create a new product category for quite some time now. P&G
plans to redress the situation by focusing once again on
P&G carries a Zacks #3 Rank, which translates into a
short-term hold rating.
PROCTER & GAMBL (PG): Free Stock Analysis
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