P&G shareholders reject bid for additional pay gap disclosures by gender and race

Procter & Gamble shareholders rejected a proposal to disclose more information on pay gaps for women and minorities at the company’s online annual meeting Tuesday.

The non-binding measure, pitched by Manchester-by-the-Sea-based firm Arjuna Capital , sought to get the maker of Tide laundry detergent and Pampers diapers to disclose the median differences in pay between non-minority males and females as well as minorities. The firm, which embraces an “enlightened” approach to investing, last year successfully persuaded Kroger shareholders to pass a similar proposal . The firm said pay disclosures promote transparency and ultimately drive better results.

“New effective disclosures are narrowing pay gaps,” Julia Cedarholm, an Arjuna senior associate told shareholders.

P&G said new disclosure was 'unnecessary,' routine measures pass

Still, P&G officials argued the additional disclosure was “unnecessary” and a potential “distraction.” In its proxy, the company disclosed pay gaps on an adjusted basis: women make 99.36 cents for every dollar as men; and minorities make 99.5 cents for every dollar for white employee. But the company did not reveal gaps on an unadjusted basis, which would provide simple differences in median pay not altered to remove factors like jobs levels, skills and experience.

Toward the end of the meeting, P&G officials disclosed the measure was voted down but didn’t reveal the number or percentage of the shares in the voting. Three other routine measures on approving the board of directors, the company’s accounting firm and executive pay all passed.

A local corporate giant

With annual sales of $84 billion, P&G is one of the largest consumer products companies in the world and employs 108,000 workers, including 30,000 in the U.S. (with 10,000 in Greater Cincinnati). In the U.S., the company owns and operates 24 factories in 18 states. Overseas, it also owns and operates 78 plants in 33 countries.

Besides Tide and Pampers, P&G also manufactures such medicine cabinet staples as Gillette razors, Crest toothpaste, Pantene shampoo, Vicks cough drops and many others .

This article originally appeared on Cincinnati Enquirer: P&G shareholders reject bid for additional pay gap disclosures by gender and race