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A.G. Lafley’s P&G Pay Set at $2M

Returning ceo eligible for a $5 million bonus in coming fiscal year.

A.G. Lafley is The Procter & Gamble Co.’s $2 million man.

Lafley, 65, rejoined the consumer products firm as chairman, president and chief executive officer Thursday. His base salary was set at $2 million and beginning with the new fiscal year on July 1 will be eligible for an annual performance bonus of $5 million. Lafley will also receive equity grants.

The executive has been consulting for the company in recent years and next month will get a cash payment of $1.6 million for his service in the current fiscal year.

P&G is having a back to the future moment with Lafley, who first joined the company in 1977 and served as ceo from 2000 to 2009. He handed the reins off to Robert McDonald, who is retiring after 33 years and has been criticized for his performance, most prominently by activist investor William Ackman.

Investors gave the ceo switch the thumbs up and pushed shares of P&G up 4.1 percent to $81.90 in midday trading on Wall Street.

In keeping with the company’s practice, McDonald will not receive any severance for retiring. Last fiscal year, McDonald logged total compensation of $15.2 million — although $10.9 million of that came in the form of stock and option awards, the value of which might never be realized. McDonald received a salary of $1.6 million and a bonus of $2.4 million.