TAILIEUCHUNG - P&G Compensation Philosophy

• OWNERSHIP o P&G Rewards are highly linked to Company growth and success, from the Future Shares to Profit Sharing, to Stock Option program. The proportion of ownership goes up dramatically based on tenure and level of responsibility. | Guide to Retaining Employees Provide Comparable Compensation Data Back to Menu Back to What We Can Do to Influence the Outcomes P G Compensation System Overview Printable Version _ P G Compensation Philosophy OWNERSHIP o P G Rewards are highly linked to Company growth and success from the Future Shares to Profit Sharing to Stock Option program. The proportion of ownership goes up dramatically based on tenure and level of responsibility. LONG TERM VALUE o P G is designed for exceptional long term value. Promotion from Within ensures career development and training as well as opportunities for advancement. The emphasis on stock ownership is founded in a commitment to grow the company over the long term. TRUST o There is a spirit of mutual trust related to sharing the confidential pay and salary potential information. The openness of this information will reinforce the trust and build the relationship with your boss. Elements of Compensation System P G Companywide BASE pay avg of band Short-Term Achievement Reward STAR Stock Options Profit Sharing and Benefits Total Comp. Band I Band II Band III Band IV Band V Band VI The Value of Stock Options P G Stock Options program is consistent with the concept of long-term value ownership. The grant value goes up exponentially based on salary significatly higher with level of responsibility performance rating . The individual s award is variable by -50 based on the individual s contribution. P G stock has a strong track record for wealth creation. Stock Options Printable Version i_ Assumptions Salary 100 000 Grant Value 90 000 Salary Increase 4 Stock Growth 12 Tax 45 Stock Options Granted Stock Options Exercised Year Age Salary Grant Value Projected Stock Price Number Shares Year Projected Stock Price Exercised Value Grant Value Before Tax Gain After Tax Gain 1999 45 100 000 90 000 100 900 2014 547 492 621 90 000 402 621 221 442 2000 46 104 000 97 650 112 872 2015 613 534 494 97 650 436 844 240 264 2001 47 108 160 105 950 125 .

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