Summary
This Form 8-K filing by Colgate-Palmolive Company on March 11, 2005, details actions taken by the Personnel and Organization Committee of the Board of Directors regarding executive compensation. The primary focus is the establishment of performance measures for annual bonuses and long-term restricted stock awards for 2005 and the 2005-2007 periods, respectively. These measures are tied to key financial metrics like earnings per share and net sales growth, aligning executive incentives with company performance. Additionally, the report discloses current base salaries for top executives and approves a 4% salary increase for Chairman and CEO Reuben Mark, effective April 2005. The committee's decisions reflect a continuation of past compensation practices and are designed to motivate and reward executive performance based on both individual and company-wide achievements, as well as market competitiveness.
Key Highlights
- 1Colgate-Palmolive's executive compensation committee established performance measures for 2005 annual bonus awards, focusing on earnings-per-share goals.
- 2Long-term restricted stock awards for the 2005-2007 period will be based on compounded annual net sales and earnings-per-share growth targets.
- 3These compensation plans operate under the company's Executive Incentive Compensation Plan, previously approved by stockholders.
- 4Current base salaries for top executives are disclosed, including Reuben Mark ($1,747,000), William S. Shanahan ($1,554,000), Ian M. Cook ($800,000), Javier Teruel ($780,000), and Lois Juliber ($768,000).
- 5A 4% base salary increase for Chairman and CEO Reuben Mark, amounting to $1,817,000, was approved and is effective April 2005.
- 6Potential future salary increases for other executive officers will be determined by factors including individual performance, business unit performance, new responsibilities, company guidelines, and competitive data.