Trian Partners Activist Presentation Deck
Management is Being Paid For, And the Board Accepts, Mediocrity
Most recent 3-year long-term compensation targets (covering 7/1/16-6/30/19)
pay management for market share losses and bottom quartile EPS growth
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Sales Targets
EPS Targets
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Targeting 2.8% organic sales growth from 2016-2019
- LOWER than expected market growth suggesting
management is being paid in full for market share loss
"Our markets today are growing somewhere between 3%
and 3.5%. We want to do a bit better than that
consistently" - David Taylor, P&G 2016 Analyst Day,
November 18, 2016
Targeting 6.0% EPS growth from 2016-2019
▪ Translates to bottom quartile EPS growth vs. peers, based
on consensus estimates for 2016-2019(1)
Compensation plan reflects P&G's insular culture
As of 2017, not a single element of P&G's long-term compensation plan disclosed
in the proxy statement measures performance RELATIVE to peers(²)
Low Targets Weak Performance → Lower Targets
Source: Company proxy statement, Capital IQ.
(1) Consensus estimates from Capital IQ as of June 30, 2016.
(2) According to the Company's 2017 proxy statement, P&G's 2017 long-term incentive plan consisted of a grant of time-vested options, time-vested restricted stock units and
performance stock units that vest based on P&G's achievement of four different absolute targets (regardless of P&G performance versus peers).
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