Trian Partners Activist Presentation Deck
Align Compensation with Shareholder Value Creation
Despite underwhelming TSR, and PPG missing its own sales and earnings targets
the past two years, CEO McGarry continues to be generously compensated:
■
■
■
Annual bonus payouts are buoyed by qualitative assessments about McGarry exceeding “personal
performance objectives", even though Company continues to disappoint its shareholders
PPG Misses its 2016 EPS & Volume Targets
(as shown in 2017 proxy statement)
$4.51
$6.07 $5.99
$6.51
Threshold Target 2016 Maximum
Actual
Adjusted Earnings-Per-Diluted Share
- Continuing Operations
(70% Weighting)
×
2.5%
Source: Company SEC filings.
1.0%
4.0%
0.0%
Threshold Target 2016 Maximum
Actual
Sales Volume/Mix Growth
(10% Weighting)
McGarry receives annual bonus totaling 134% of
target & total compensation of $12.5M.
■
PPG Misses its 2017 EPS & Volume Targets
(as shown in 2018 proxy statement)
$4.70
$6.01 $6.26
$6.89
Threshold 2017 Target Maximum
Actual
Adjusted Earnings-Per-Diluted Share
- Continuing Operations
(70% Weighting)
1.2%
0.0%
Threshold 2017
Actual
3.1%
Target
Going forward, CEO compensation should be directly tied to achieving
PPG's financial targets and creating value for shareholders
4.7%
Maximum
Sales Volume/Mix Growth
(10% Weighting)
X
McGarry receives annual bonus totaling 108%
of target & total compensation of $14.3M
- 38 -View entire presentation