Procter & Gamble predicted to take a $1 billion hit from President Trump’s tariffs
Procter & Gamble has warned that President Trump’s tariffs will cost it $1 billion in additional costs. (Scripps News)
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- Jejurikar has been awarded a performance incentive of over 130,000 company stock options.
- Mr. Jejurikar’s compensation includes a salary of $1.6 million, potential incentive pay and a long-term incentive award worth $14 million.
- The change in management comes as P&G plans to cut 7,000 administrative jobs amid slowing sales growth.
Procter & Gamble has given its new CEO, Shailesh Jejrikar, a strong performance incentive to boost his company’s performance: options on more than 130,000 shares of the company’s stock.
The new president of the consumer products giant now owns $14.9 million in stock in the company, which makes everything from Tide detergent to Pampers diapers to Gillette razors. But with more than $5 million worth of new stock grants and vested options, his net worth would jump to more than $28 million, according to company filings with the U.S. Securities and Exchange Commission.
While Jejurikar is one of the largest insider investors, P&G’s proxy statement reveals that all 27 executives and directors collectively own less than 0.2% of the company’s more than $330 billion in outstanding stock.
Mr. Jejrikar has an opportunity to increase the value of his stock, but his latest stock options are “underground,” or worthless, because P&G’s stock price has slumped since the options were granted in mid-September and early October. This stock has no value until P&G stock rises above $153.18. On January 12, P&G stock closed at $143.46 per share.
Paying executives in stock and options is standard corporate practice to align financial incentives with shareholders.
Appointed as P&G’s next CEO in July
Jejrikar, 59, was appointed as the new CEO on July 28, replacing John Mueller, who has led the company since 2021. He was named No. 2 executive on the same day Mueller was chosen to succeed him and had long been seen as the company’s next leader.
Previously, he served as CEO of P&G’s Global Fabrics and Home Care from 2019 to 2021, where he oversaw many of P&G’s most iconic brands, including Tide, Ariel, Downy, GAIN, Febreze and Swiffer, which accounted for one-third of the company’s sales and profits.
Jejurical’s rise comes as P&G seeks to reduce
Mr. Jejrikar will be paid an annual salary of $1.6 million and an additional annual stipend worth up to $3.2 million, according to company disclosures to the government. The company’s board also approved long-term incentives for Jejurikar worth $14 million.
Under Jejurikar, P&G is aiming to boost sales by using the layoffs to invest in improved products. Last summer, P&G announced it would cut 7,000 office jobs as a restructuring measure in response to slumping sales. In July, the company reported its slowest sales growth in seven years.
