Procter & Gamble CEO could see major wealth boost from stock incentives

Core Viewpoint - Procter & Gamble has provided its new CEO, Shailesh Jejurikar, with a significant performance incentive in the form of stock options to enhance the company's performance amid slowing sales growth [1][9]. Group 1: CEO Compensation and Stake - Jejurikar currently holds a stake worth $14.9 million in the company, which could increase to over $28 million with new stock grants and options [2]. - The new CEO's stock options are currently "underwater," meaning they hold no value until P&G's stock price exceeds $153.18, while it closed at $143.46 on January 12 [4]. - All 27 top executives and board members collectively own less than 0.2% of P&G's outstanding shares, which total more than $330 billion [3]. Group 2: Leadership Background and Strategy - Jejurikar was appointed as the next CEO on July 28, 2022, succeeding Jon Moeller, and has been viewed as a potential leader for some time [6]. - Prior to his CEO appointment, Jejurikar led P&G's Global Fabric and Home Care division, managing iconic brands that account for a third of the company's sales and profit [7]. - Under Jejurikar's leadership, P&G plans to boost sales by investing in product improvements while cutting jobs, having announced a reduction of 7,000 office positions amid slowing sales [9]. Group 3: Compensation Structure - Jejurikar's annual salary is set at $1.6 million, with potential additional incentive pay of up to $3.2 million, alongside a long-term incentive award valued at $14 million [8].