ceo of procter and gamble salary
Title: CEO of Procter & Gamble Salary: A Comprehensive Breakdown of Compensation and Trends
Introduction
Procter & Gamble (P&G), a global leader in consumer goods, has long been a benchmark for corporate governance and executive compensation transparency. Its CEO, Rajiv Suri, has drawn attention for his compensation package, which reflects both industry standards and P&G's performance-driven culture. This article explores the salary structure, historical trends, and key factors influencing Suri's compensation.
1. 2022 Total Compensation Overview
As of the latest disclosed data (2021 fiscal year), Rajiv Suri's total compensation was $21.2 million, broken down as follows:
Base Salary: $1.2 million (up 3% YoY).
Short-Term Incentives: $6.5 million (based on P&G's financial performance).
Long-Term Incentives (LTI): $10.1 million (performance-based stock awards tied to 3-5 year goals).
Other: $3.4 million (security, travel, and other benefits).
Source: P&G 2021 Annual Report (10-K).
2. Historical Trends
2020: $19.4 million (lower due to pandemic-driven cost cuts).
2019: $16.7 million (modest growth after a 2018 surge linked to tax reforms).
Key driver: P&G's emphasis on long-term shareholder returns through stock buybacks and dividends, with executive pay tied to metrics like revenue growth, margin improvements, and R&D investments.
3. Industry Comparison
Suri's compensation aligns with Fortune 500 norms for consumer goods CEOs:
Median CEO pay in consumer staples: ~$15–20 million (Bloomberg 2022).
P&G vs. peers: Higher than Unilever (14.9M) but lower than Coca-Cola (27.3M), reflecting P&G's focus on operational efficiency.
Note: P&G's stock performance (down ~15% in 2022) may pressure future pay if incentive targets are missed.
4. Shareholder and Stakeholder Feedback
Support: P&G's compensation committee argues it attracts/retains talent critical to its $65B+ market cap.
Criticism: Some investors, via proxy proposals, argue for stricter LTI clawbacks (e.g., if stock price underperforms).
P&G's response: Emphasizes pay-for-performance alignment and alignment with ESG goals (e.g., sustainability targets).
5. Challenges and Controversies
Pandemic Impact: Cost-cutting measures (e.g., layoffs) contrasted with Suri's pay growth.
Stock Buybacks: P&G returned $40B+ to shareholders since 2013, but critics link this to reduced reinvestment.
Gender Pay Gap: P&G reported a 28% gender pay gap in leadership roles, raising questions about equity in compensation structures.
6. Future Outlook
2023 Incentives: Likely tied to achieving $80B revenue by 2025 and margin expansion.
Stock Price Sensitivity: A rebound in P&G shares could boost Suri's LTI value.
Regulatory Risks: Global scrutiny of CEO pay ratios (e.g., EU's CSRD) may pressure disclosure practices.
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Conclusion
Rajiv Suri's compensation exemplifies the balance between market expectations and corporate strategy. While P&G's pay structure remains competitive, its long-term sustainability hinges on delivering shareholder value amid evolving consumer trends and regulatory landscapes. Investors should monitor how Suri navigates inflationary pressures and digital transformation challenges.
Sources:
P&G Annual Reports (2019–2022).
Bloomberg Pay Index.
Proxy Statement Analysis (2022).
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