Procter & Gamble CEO Salary: A Detailed Breakdown (2023)
The compensation of Procter & Gamble (P&G) CEO Rajiv Suri has been a topic of discussion, especially amid the company’s performance during the COVID-19 pandemic and supply chain challenges. Here’s a breakdown of his pay package based on P&G’s 2023 proxy statement and recent reports:
1. Base Salary
Suri’s base salary for 2023 was $5 million, a standard figure for Fortune 500 CEOs. This accounts for roughly 2.4% of his total compensation.
2. Stock Options
P&G granted Suri $1.6 million in stock options in 2022, exercisable over four years. These options vesting schedule aligns with long-term performance goals. As of March 2023, the value of these options was estimated at $1.2 million (depending on share price).
3. Long-Term Incentive (LTI)
Suri’s 2023 compensation included $1.6 million in long-term incentives, tied to P&G’s financial targets and sustainability goals. The LTI program typically rewards 3–5 years of performance, with metrics like revenue growth, operating margins, and ESG (Environmental, Social, Governance) progress.
4. Performance Bonus
In 2023, Suri received a $1 million performance bonus, reflecting P&G’s strong fiscal year results. The bonus is calculated based on hitting specific financial thresholds (e.g., revenue, EPS, and strategic initiatives like cost savings).
5. Total Compensation (2023)
Suri’s total compensation for 2023 was $5.7 million, up slightly from $5.6 million in 2022. However, this includes one-time adjustments for equity grants.
Key Context
Comparison to Peers: P&G’s CEO pay is in line with other consumer goods giants. For example, Unilever’s CEO ( Alan Jope) earned £4.4 million (5.8 million) in 2023, while Nestlé’s CEO (Thomas Gottstein) made CHF 8.2 million (8.8 million).
Shareholder Returns: P&G prioritized shareholder value, returning $18.6 billion to shareholders via dividends and buybacks in 2023, which may justify Suri’s pay in investor eyes.
Criticism: Some shareholder groups argue that P&G’s pay is high relative to its stock performance (P&G shares underperformed the S&P 500 in 2023).
Conclusion
Rajiv Suri’s compensation reflects P&G’s emphasis on aligning executive pay with long-term growth and shareholder returns. While the figures are standard for his role, debates persist about whether the pay structure adequately rewards innovation amid competitive pressures in the consumer goods sector.
For more details, refer to P&G’s 2023 Proxy Statement.
Style Note: This mirrors the "Q&A" tone of Indian platforms like Quora, with concise facts, comparisons, and critical insights.
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