Procter & Gamble Co. CFO Clayton Daley Jr. has been awarded a special $1.5 million bonus for doing a good job on the
integration of Gillette, according to recently filed SEC documents cited in the Dayton Business Journal. P&G bought Gillette in 2005 for $54 billion. What's the latest on how the two have been combined? A little web-surfing shows the following:
- When P&G reported earnings on August 5 (operating profits were up 13% for the quarter) it said cost synergies on the deal exceed $1.2 billion and revenue synergies are "on track."
- On the revenue-synergy front, P&G haircare technology is enabling Gillette to move beyond razors and into shampoo for men.
- On August 7 P&G announced 215 job cuts at Gillette's South Boston headquarters, the first major cuts there according to the Boston Globe. Most of the jobs are going to Mexico and Poland. At the same time, P&G continues to invest in the South Boston location; for one thing, it will spend $50 million to move the global grooming business there from Boston's Prudential Tower.
In the SEC filing, P&G cited Daley's "oversight of all aspects of the transaction." -
Kenneth Klee
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