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A.G. Lafley of P&G’s compensation declined but gets boost in bonus!

By Amarendra Bhushan for CEOWORLD Magazine Updated:September 3, 2008

Procter & Gamble Co , announced that Chairman and Chief Executive A.G. Lafley’s total compensation in the latest fiscal year declined 15 percent due largely to lower option awards. But a 12 percent increase in bonus in the fiscal year, contributing to a total pay package of almost $23.5 million from $27.7 million in the previous year.

Lafley’s salary of $1.7 million was the same for the fifth consecutive year, while his bonus, based on company performance, was $4 million, up $500,000. The board approved a $100,000 raise for the current year.

Among other compensation, Lafley received $9.1 million in stock, down slightly from last year, and $7.8 million in options. The previous year, he received $10.3 million in options.

The company said Lafley’s compensation was 89 percent based on performance goals that were met or exceeded in the latest fiscal year ended in June, with the majority paid in stock, restricted stock units or options.

P&G’s sales rose 9 percent to $83.5 billion for the year. Sales in ongoing businesses, also known as organic sales, were up 5 percent, in line with company goals on which Lafley’s compensation is based.

Earnings per share for the year jumped 20 percent to $3.64. Excluding the Gillette acquisition, they rose between 11 percent and 12 percent, compared with a company goal of 10 percent or better. In addition, Lafley was awarded a combined $640,000 for a variety of expenses and perks from contributions to his retirement fund, to home security, to use of the corporate jet.

“In year three we square up for the whole thing,” Loucks said. “They had already received much of it.”

Who is A.G. Lafley?

ALAN G. (A.G.) LAFLEY

DATE OF BIRTH: June 13, 1947 PLACE: Keene, New Hampshire
EDUCATION: Hamilton College, A.B., 1969
Harvard Business School, M.B.A., 1977
BUSINESS AFFILIATIONS PRIOR TO JOINING PROCTER & GAMBLE:
U.S. Navy, 1970-1975
DATE JOINED PROCTER & GAMBLE: June, 1977
POSITIONS HELD AND DATES:
1977 – Brand Assistant, Joy
1978 – Sales Training, Denver Sales District
1978 – Assistant Brand Manager, Tide
1980 – Brand Manager, Dawn & Ivory Snow
1981 – Brand Manager, Special Assignment & Ivory Snow
1982 – Brand Manager, Cheer
1983 – Associate Advertising Manager, PS&D Division
1986 – Advertising Manager, PS&D Division
1988 – General Manager, Laundry Products, PS&D Division
1991 – Vice President-Laundry and Cleaning Products, Procter & Gamble USA
1992 – Group Vice President, The Procter & Gamble Company, and President-
Laundry and Cleaning Products, Procter & Gamble USA
1994 – Group Vice President, The Procter & Gamble Company, and President-Procter & Gamble Far East
1995 – Executive Vice President, The Procter & Gamble Company, (President-Asia, Procter & Gamble Asia)
1998 – Executive Vice President, The Procter & Gamble Company, (President-North America, Procter & Gamble North America)
1999 – President-Global Beauty Care and North America
2000 – President and Chief Executive
2002 – Chairman of the Board, President and Chief Executive

LOCAL AND NATIONAL ACTIVITIES:
Member, Board of Directors, General Electric Company
Member, Board of Directors, Dell Inc.
Member, The Business Council
Member, The Business Roundtable
Member, Board of Directors, Grocery Manufacturers of America
Member, Board of Trustees, Hamilton College
Member, Board of Directors, United Negro College Fund
Member, American Society of Corporate Executives
Member, The Lauder Institute Board of Governors (Wharton School of Arts & Sciences)
Member, Board of Trustees, U.S. Council for International Business
Chairman, Cincinnati Center City Development Corporation (3CDC)
Past Member, Board of Trustees, Xavier University
Past Member, Board of Directors, General Motors Corporation
Past Member, G100 (formerly The M&A Group)
Past Member, American Chamber of Commerce in Japan
Past Member, Board of Trustees, Cincinnati Symphony Orchestra
Past Member, Board of Trustees, The Seven Hills School
Past Member, Board of Trustees, Medical Center Fund of Cincinnati
Past Member, Board of Trustees, Cincinnati Playhouse in the Park
Past Member, Board of Trustees, Cincinnati Fine Arts Fund
CLUBS:
Hamilton Club of Southern Ohio
Harvard Club of Cincinnati
Commonwealth Club of Cincinnati
Commercial Club of Cincinnati
Cincinnati Country Club
Metropolitan Club
Queen City Club

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