Procter and Gamble reaches for the stars

August 31, 2007

A shiny gold star, that is. We’ve picked on Procter and Gamble’s (PG) past proxies (say that three times fast), but they finally seem to have earned their gold star (we’re grading on a bit of a curve).

Some shareholder-friendly initiatives in this year’s proxy include:

  • Discontinuing individual dining club memberships for the Named Executive Officers;
  • Not allowing tax gross-ups for Named Executive Officers; and
  • Adopting the “Senior Executive Officer Recoupment Policy” – basically allowing PG to recoup bonus payments made to Senior Executives in the event of a significant restatement of financial results for any reason (this is also known as a “clawback” provision).
  • There’s a limit to PG’s shareholder friendliness, though. They’re not recommending a vote for Evelyn Y. Davis’s shareholder proposal to completely do away with awarding stock options. We’ll give PG a pass on that.

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    NOTE: Enjoyed my week of posting. Hope you did too. Michelle will back Tuesday with the best of the Labor Day dump.

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