Art & Comerce: Procter's Gamble

Leaders from Glossier, Shopify, Mastercard and more will take the stage at Brandweek to share what strategies set them apart and how they incorporate the most valued emerging trends. Register to join us this September 23–26 in Phoenix, Arizona.

The idea of pay for performance is not new, but its adoption by P&G is groundbreaking
When Procter & Gamble announced its new agency compensation plan, shares of Saatchi & Saatchi, one of P&G’s leading ad shops and the only one that’s public, declined 12.5 percent. There are two odd things about this swoon: first, that the stock was in a position to decline to a price of 17. A year ago, it was languishing below 9 and here it is, even after taking a big hit, still trading at roughly double that value; second, and more fundamental, that investors seem to have interpreted the P&G step as bad news for ad agencies.

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