Human Capital & Careers

P&G’s CFO: Manage a Merger, Pocket $1.5M

Clayton Daley receives a special equity award for his role in the Gillette combination — from valuation and negotiation to integration.
Stephen TaubAugust 20, 2008

The vice chairman and CFO of Procter & Gamble Co., Clayton C. Daley Jr., received a special equity award of $1.5 million for his work in the 2005 acquisition of razor and consumer products giant Gillette.

According to a regulatory filing, Daley was recognized for his integral role in the valuation, negotiation, and acquisition of Gillette, along with successful leadership in the integration of Gillette into P&G. “This grant reflects Mr. Daley’s involvement and oversight of all aspects of the transaction,” the company said, noting it was the largest and one of the most successful such deal in the company’s history.

At the time it closed, the transaction created a company with a market capitalization exceeding $200 billion and $62 billion in annual sales. In the fiscal year ended this past June, P&G reported 9 percent sales growth, to $83.5 billion, and delivered top-line growth at or above targets for its seventh consecutive year and 24th consecutive quarter, the company noted. Its market cap is currently $218 billion.

Noting “the successful integration of Gillette” during the year, P&G noted that cost synergies exceeded $1.2 billion, and said revenue synergies from distribution gains and new product launches “are on-track.” It added that he elimination of prior-year Gillette dilution effects contributed an estimated $0.10 to $0.12 to earnings per share growth for the fiscal year.

Daley’s stock grant was in the form of restricted stock units under the company’s 2001 Stock and Incentive Compensation Plan using the closing price for the company’s common stock on Aug. 12.

Daley joined P&G in 1974shortly after graduating from Ohio State University with an MBA. Since then he has held a variety of increasingly critical financial jobs. In 1998, he was named CFO.

Institutional Investor magazine has named him the top CFO in the consumer products industry each year from 2004 through 2007.

Last year, Daley earned a total of $7.6 million, including a $1 million bonus. He made an additional $1 million from exercising stock options.

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