Summary
Colgate-Palmolive Company (CL) filed an 8-K on March 10, 2006, detailing decisions made by its Personnel & Organization Committee (P&O Committee) and Board of Directors on March 9, 2006. The P&O Committee established performance measures for executive compensation, including annual bonus awards for 2006 and long-term restricted stock awards for the 2006-2008 period, focusing on earnings-per-share and net sales growth targets. The filing also disclosed current base salaries for key executives and approved a 4% salary increase for CEO Reuben Mark, effective April 2006. Additionally, the Board of Directors authorized a new share repurchase program, replacing the previous one that was set to expire. This new program allows for the repurchase of up to 30 million shares of common stock, demonstrating a commitment to returning value to shareholders and potentially impacting earnings per share through a reduced share count.
Key Highlights
- 1Establishment of performance measures for 2006 annual bonus awards, based on an earnings-per-share goal.
- 2Setting of compounded annual net sales and earnings-per-share growth targets for 2006-2008 long-term restricted stock awards.
- 3Disclosure of current base salaries for key Named Executive Officers, including CEO Reuben Mark ($1,817,000).
- 4Approval of a 4% base salary increase for CEO Reuben Mark, effective April 2006, bringing his salary to $1,890,000.
- 5Authorization of a new share repurchase program to buy back up to 30 million shares of common stock.
- 6The new share repurchase program replaces the October 2004 program and is effective immediately as of March 9, 2006.
- 7The company had approximately 515 million shares of common stock outstanding as of February 28, 2006.