Procter & Gamble Chief Robert McDonald Takes a Pay Cut

Aug. 26, 2012 CINCINNATI -- Procter & Gamble's chief executive officer had a pay cut of 6.1% for the fiscal year ended June 30, according to a government filing available Friday.

Robert McDonald's pay fell $989,000 to $15.2 million as the consumer products giant missed growth targets amid a worldwide economic slowdown. McDonald's pay, tied to performance goals set in 2011, declined before hedge fund manager Bill Ackman bought a nearly 1% stake in P&G, which increased scrutiny of the company and its CEO this summer.

Forbes magazine ranked McDonald 317th in CEO pay earlier this year, estimating his one-year pay at $5.07 million and his five-year pay at $17.4 million based on proxies filed as of March 23. The magazine does not count the value of stock options until an executive exercises them.

Collectively, the magazine estimated that CEOs across the country received a 16% pay raise while the average American got 3%.

Highlights of McDonald's compensation:

• His salary remained unchanged at $1.6 million; • His bonus was $2.4 million, down $200,000, or 7.7 percent; • He received $10.8 million in stock and option awards, down $1.4 million, or 11.5 percent; • Other compensation rose 69.5 percent to more than $312,000.

Details of McDonald's pay were disclosed in Procter & Gamble's annual proxy filed with the U.S. Securities and Exchange Commission.