NEW YORK, N.Y. - Procter
McDonald's retirement was announced abruptly in May, with the company facing pressure to improve its results. He was replaced by his predecessor A.G. Lafley, who was given a prorated pay package of $2 million the five weeks he served at the end of the company's fiscal year, according to a filing with the Securities and Exchange Commission.
McDonald's pay bump was the result of a higher cash-based bonus of $3.3 million, which was up 36 per cent from the previous year. His base salary of $1.6 million and stock awards of $6.4 million were unchanged from the previous year. His stock options were valued at $4.2 million, a 4 per cent dip.
Other compensation rose 7 per cent to $332,877 million, including the value of use of the corporate jet and retirement fund contributions.
Lafley's compensation included a salary of $217,391 and a bonus of $1.6 million. All other compensation came to $187,264.
The maker of Tide detergent, Crest toothpaste and other consumer goods, like many of its rivals, has been expanding into rapidly growing emerging markets such as Latin America, India and Russia. But there, it has faced tough competition from already entrenched smaller rivals such as Dutch consumer-products maker Unilever and Colgate-Palmolive.
But investors have been frustrated by the company's slow revenue growth and stagnant market-share gains globally. The pressure stepped up last July, when activist investor William Ackman took a 1 per cent stake. He has been vocal about the company's need to streamline operations and improve results. The pressure eventually led to McDonald's departure at the end of the fiscal year. McDonald had been with P
For the year ended June 30, net income after paying preferred dividends rose 5 per cent to $11.31 billion, or $3.86 per share. Revenue rose 1 per cent to $84.17 billion from $83.68 billion a year ago.
In fiscal 2014, Procter
The company notes that the majority of pay for its executives is tied to performance. P
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.