A year earlier, Lafley earned $5 million in restricted stock awards and $5.9 million in long-term incentive plan payments.
P&G , which makes Gillette razors and Pampers diapers, disclosed the details of Lafley's compensation in a proxy filing with U.S. regulators.
Lafley, 60, is required to hold eight times his base salary in P&G shares and/or restricted stock units. He is well above that threshold as he owns more than 30 times his base salary in stock, P&G said.
The company said 92 percent of Lafley's total compensation was predicated on P&G's performance.
Sales rose 12 percent to $76.5 billion in the fiscal year ended in June, aided by the October 2005 acquisition of Gillette and revamped products such as Pantene shampoo and conditioner and Swiffer cleaning kits. Sales, excluding the effects of mergers and foreign exchange, rose 5 percent, within the goal of 4 percent to 6 percent set for Lafley's incentive pay.
Earnings per share jumped 15 percent to $3.04 and were up 11 percent before the impact of dilution from Gillette, topping a 10 percent target.
Retired Vice Chairman James Kilts, the former Gillette chairman and CEO who left P&G on Oct. 1, received $9 million in salary, bonus and other compensation, P&G said.
Evelyn Y. Davis, a well-known shareholder activist who holds 800 P&G shares, is proposing at the Oct. 9 annual meeting in the company's hometown of Cincinnati that the board stop awarding stock options.
Last year, the same proposal from Davis, who did not attend the 2006 meeting, was defeated.
The Free Enterprise Action Fund, which owns 1,260 P&G shares, is proposing the board to report on any company policies and activities intended to promote free enterprise, improve the business environment and prevent anti-business activists from harming shareholder value.
People for the Ethical Treatment of Animals, which owns 70 P&G shares, is proposing the board report on the feasibility of phasing out Iams' funding for and use of laboratory tests on animals in favor of in-home testing methods. Iams, a unit of P&G, makes pet food for cats and dogs.
P&G's board recommended shareholders vote against all three of the shareholder proposals.
Shares of P&G, a component of the Dow Jones industrial average, were down 3 cents at $65.20 in morning New York Stock Exchange trade.
