Clorox (NYSE:CLX), a leading American multinational manufacturer and marketer of consumer and professional products, is set to face its shareholders at the Annual General Meeting (AGM) on Wednesday, November 15, 2023. The meeting is expected to be a platform for shareholders to voice their concerns over the firm's poor performance and executive remuneration.
Over the past three years, Clorox has experienced a significant 58% reduction in Earnings Per Share (EPS) and a 29% loss for its shareholders. This downturn in performance has raised eyebrows amongst shareholders, especially considering the compensation package of the company's CEO, Linda Rendle.
In June 2023, Clorox reported a remarkable 36% increase in Rendle's compensation to $12 million, with her base salary accounting for only $1.2 million of this sum. This indicates that the majority of her pay is performance-linked. At the time, Clorox had a market cap of $16 billion. The contentious issue for shareholders lies in the fact that Rendle's compensation mirrors the industry median of $11 million despite the company's underperformance.
Adding to these concerns is Rendle's considerable personal stake in Clorox. She owns $5.6 million in Clorox stock, which further ties her financial interests to the company's performance.
The upcoming AGM will provide an opportunity for shareholders to influence management decisions through votes on executive remuneration and other key issues. With Clorox's recent performance and executive pay under scrutiny, this meeting promises to be a critical juncture for the company's future direction.
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