Pay Ratio
As required by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection
Act, and Item 402(u) of Regulation S-K, we are providing the following information about the relationship of the annual total compensation of our employees and the annual total compensation of the CEO
position, which was held by Mr. Taylor from July 1, 2021 to October 31, 2021, and by Mr. Moeller from November 1, 2021 to June 30, 2022. The pay ratio was calculated in a manner consistent with Item 402(u) of Regulation
S-K and based upon our reasonable judgment and assumptions.
For FY 2021-22, the
median of the annual total compensation of all employees of the company (other than our CEO) was $65,918, and the annual total compensation of the CEOs, prorated for time worked, was $18,006,587. Based on this information, the ratio of the annual
total compensation of CEO to the median of the annual total compensation of employees was 273 to 1.
In accordance with SEC requirements, we determined that there
have been no changes to our employee population or compensation arrangements in FY 2021-22 that we believe would significantly affect our pay ratio disclosure. In determining our pay ratio for FY 2021-22, we used the same median employee as was identified last year according to the process outlined below. The median employees pay increased in local currency (Euro); however, due to significant changes
in the USD to Euro exchange rate during FY 2021-22, the median employee reportable pay appears lower when converted to USD.
To identify the median of the annual total compensation of all our employees, we determined that, as of April 1, 2021, our employee population consisted of
approximately 99,441 active employees working at our parent company and consolidated subsidiaries. Applying the de minimis exemption under the rule, we chose to exclude approximately 4,929 employees in 29 countries where payroll data is
maintained outside the system that holds data for the majority of our employees, or less than 5% of the total.1
To identify the median employee from the resulting population of approximately 94,512 employees, we selected Total Gross Pay as the consistently applied
compensation measure. Total Gross Pay reflects a wide variety of pay items, including monthly and bi-weekly wages earned, time-related bonuses (such as overtime, shift premiums, holiday bonuses), vacation pay,
bonuses, stock option exercises, and other benefits and allowances. Because pay periods vary across jurisdictions, we measured Total Gross Pay using a three-month period covering January, February, and March 2021. For purposes of determining the
consistently applied compensation measure, we converted the gross salary amounts from the local currency paid in the country into U.S. dollar amounts using an average of the exchange rates at the end of each month in the three-month period.
With respect to the annual total compensation of the median employee, we identified and calculated the elements of such employees compensation for FY 2021-22 in accordance with the requirements of Item 402(c)(2)(x) of Regulation S-K. With respect to the annual total compensation of our CEO, we used prorated amounts from the
amounts reported in the Total column (column (j)) of our FY 2021-22 Summary Compensation Table included in this Proxy Statement.
1 We excluded the following approximate
number of employees by jurisdiction: Turkey, 661; Ukraine, 521; Czech Republic, 518; Austria, 506, Pakistan; 493; United Arab Emirates, 487; South Africa, 397; Greece, 228; Nigeria, 190; Morocco, 153; Netherlands, 151; Portugal, 140; Sweden, 108;
Ecuador, 48; Israel, 40; Kazakhstan, 39; Croatia, 37; Serbia, 36; Slovakia, 35; Bulgaria, 29; Azerbaijan, 22; Finland, 21; Denmark, 20; Kenya, 18; Norway, 11; Latvia, 10; Ghana, 5; Bangladesh, 3; Algeria, 2.
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66 The Procter & Gamble Company |
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