Increases to The Procter & Gamble Company's (NYSE:PG) CEO Compensation Might Cool off for now

Under the guidance of CEO Jon Moeller, The Procter & Gamble Company (NYSE:PG) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 11 October 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Procter & Gamble

How Does Total Compensation For Jon Moeller Compare With Other Companies In The Industry?

According to our data, The Procter & Gamble Company has a market capitalization of US$308b, and paid its CEO total annual compensation worth US$18m over the year to June 2022. We note that's an increase of 44% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.5m.

For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$7.7m. Accordingly, our analysis reveals that The Procter & Gamble Company pays Jon Moeller north of the industry median. Furthermore, Jon Moeller directly owns US$33m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	US$1.5m	US$1.2m	8%
Other	US$16m	US$11m	92%
Total Compensation	US$18m	US$12m	100%

On an industry level, roughly 18% of total compensation represents salary and 82% is other remuneration. Procter & Gamble pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at The Procter & Gamble Company's Growth Numbers

Over the past three years, The Procter & Gamble Company has seen its earnings per share (EPS) grow by 61% per year. It achieved revenue growth of 5.3% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has The Procter & Gamble Company Been A Good Investment?

The Procter & Gamble Company has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Procter & Gamble that investors should look into moving forward.

Important note: Procter & Gamble is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.