Trian Partners Activist Presentation Deck
Management Has Received Generous Bonuses Despite Poor Results
▪ As a result of steadily declining financial targets, management has been paid out
approximately 100% of their annual target bonus over the past 5 and 10 years, even
with weak operating results and near worst-in-class TSR
■
5-Year TSR vs. Annual Bonus Payout
P&G TSR
67%
Peer
Average
118%
P&G TSR
Percentile
5th
percentile
Avg. Bonus
Payout (% of
Target)
98%
10-Year TSR vs. Annual Bonus Payout
P&G TSR
93%
Peer
Average
210%
P&G TSR
Percentile
14th
percentile
Avg. Bonus
Payout (% of
Target)
Furthermore, in 2016, P&G added a "Transformation Factor" to the annual bonus calculation,
allowing the Board to subjectively increase management's annual bonus
101%
- 2017: Transformation factor boosted the annual bonus by 15%, resulting in an average payout of
132% of target, vs. what would have been 115% under the previous framework
- 2016: Transformation factor boosted the annual bonus by 30%, resulting in an average payout of
93% of target, vs. what would have been 71% under pre-2016 framework
Management received 132% of their target bonus in 2017, despite
P&G losing market share and generating EPS growth in the bottom 1/3rd of peers
Source: Company proxy statement, SEC filings. Average bonus payout percentages reflect average payouts to all named executive officers during the relevant period.
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