Under the old "Business Growth Plan" executives were compensated in cash or stock based on
organic sales growth. The new "Performance Stock Program" compensates top managers -- in stock only -- based on how the company's organic sales growth does in comparison to peer companies.
"While P&G plays down the significance of the change, it essentially positions managers of the world's biggest ad spender to win even if their categories slow, their prices decline and if what's already been a nearly three-year U.S. recession by official reckoning lasts another three," Neff writes.
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