Monitor the CEO search outcome and the Q1 FY27 earnings release for signs of operational stabilization. The 54% AIP multiplier and 69% PSU payout confirm weak execution — watch for any guidance revision or restructuring announcements.
Price Chart
Executive Summary
Clorox filed its definitive proxy statement for the 2026 annual meeting, disclosing a CEO search underway after Linda Rendle's decision to step down, a 5% decline in net sales to $6.7B, a 28% drop in net earnings to $587M, and below-target incentive payouts (54% short-term multiplier, 69% PSU payout). The filing is routine governance material with no shareholder proposals or contested director elections, but the financial deterioration and leadership transition are notable.
Key Facts
- CEO Linda Rendle announced decision to step down; Board formed independent CEO Search Committee.
- Fiscal year 2026 net sales decreased 5% to $6.7B from $7.1B.
- Net earnings attributable to Clorox decreased 28% to $587M from $810M.
- Gross margin decreased 290 basis points to 42.3%.
- Short-term incentive (AIP) Company multiplier was 54% of target.
- Performance share units (FY24-26) paid out at 69% of target.
- Last year's say-on-pay vote received approximately 91% approval.
- Board reduced from 11 to 10 directors; A.D. David Mackay not standing for re-election.
- All director nominees are independent except CEO Rendle.
- No shareholder proposals on the ballot.
Financial Impact
Net sales -5% to $6.7B; net earnings -28% to $587M; gross margin -290 bps to 42.3%; diluted EPS -26% to $4.81
Risk Factors
- CEO transition uncertainty could disrupt strategic execution
- Continued consumer value-consciousness and competitive pressure may further pressure sales and margins
- ERP transition-related inventory drawdown and GOJO integration costs may persist
- S&P downgrade of long-term credit rating by S&P (BBB+ to BBB) increases refinancing risk
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| DEF 14A Filing (Primary) | 0001552781-26-000516 |
| Document: 0001552781-26-000516-index-headers.html | 0001552781-26-000516 |
| Document: 0001552781-26-000516-index.html | 0001552781-26-000516 |
| Document: 0001552781-26-000516.txt | 0001552781-26-000516 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 16, 2026 10d ago | Institutional Cluster | $85.56 $86.35 | ▲ +0.92% | ▲ +1.06% | $86.76 (+1.40%) |
Oct 7, 2026 19d ago | DEFA14A | $83.44 $86.20 | ▲ +3.31% | ▲ +3.58% | $86.76 (+3.98%) |
Oct 7, 2026 19d ago | DEF 14A | $83.44 $86.20 | ▼ −3.31% | ▼ −3.58% | $86.76 (−3.98%) |
Sep 23, 2026 4w ago | Press Release | $81.80 $80.65 | ▼ −1.41% | ▼ −0.99% | $86.76 (+6.06%) |
Aug 26, 2026 8w ago | Institutional Cluster | $104.23 $94.27 | ▼ −9.56% | ▼ −9.44% | $86.76 (−16.76%) |
Aug 3, 2026 12w ago | Press Release | $104.67 $108.25 | ▲ +3.42% | ▲ +3.52% | $86.76 (−17.11%) |
Jul 13, 2026 15w ago | Press Release | $94.75 | awaiting T+5 | — | $86.76 (−8.43%) |
Jun 17, 2026 18w ago | 8-K | $95.80 $95.27 | ▼ −0.55% | ▲ +1.11% | $86.76 (−9.44%) |
Feb 28, 2026 34w ago | Institutional Cluster | $125.23 $112.00 | ▼ −10.57% | ▼ −9.36% | $86.76 (−30.72%) |
US Market Status
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