|
For the year ended June 30, net income after paying preferred dividends rose 5 percent to $11.31 billion, or $3.86 per share. Revenue rose 1 percent to $84.17 billion from $83.68 billion a year ago. In fiscal 2014, Procter & Gamble expects earnings excluding one-time items to rise 5 percent to 7 percent, implying results of $4.25 to $4.33 per share. It expects revenue to rise 1 percent to 2 percent, implying revenue of $85 billion to $85.85 billion. Analysts expect earnings of $4.32 per share on slightly higher revenue of $86.47 billion. The Procter & Gamble board committee's report said it uses CEO pay at 25 other big companies, including Wal-Mart Stores Inc., Colgate-Palmolive, Johnson & Johnson and General Electric, as a guide in determining executive compensation. The company notes that the majority of pay for its executives is tied to performance. P&G looks at such measures as organic sales growth, which excludes acquisitions, and earnings-per-share growth. The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission. The value that a company assigned to an executive's stock and option awards for 2012 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. But the number is an estimate and what an executive ultimately receives depends on the performance of the company's stock in the years after the awards are granted.
[Associated
Press;
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.