Consumer goods giant Procter & Gamble Co. (PG) announced Thursday that A.G. Lafley is returning to take over the reigns of the company to succeed Robert McDonald, who is retiring on June 30 after 33 years of service. Lafley will take over as chairman, president and chief executive officer of the company, effective immediately. He has also been elected to the Board of Directors.
Lafley had in his earlier stint joined Procter & Gamble in June 1977 in marketing, and most recently served as its full-time chairman from July 2009 to January 2010. He retired from the company, effective February 25, 2010.
Lafley served as the president and CEO of P&G from June 2000 to 2009. He was also elected as the chairman of the board of directors in July 2002 after being appointed to the board in 2000.
Jim McNerney, presiding director of P&G's Board, said, "A.G.'s track record and his depth of experience at P&G make him uniquely qualified to lead the Company forward at this important time. The Board expects A.G. to further improve results, implement the current productivity plan, and facilitate an ongoing succession process."
Lafley held a variety of positions in P&G's laundry and cleaning business before being named group vice president in 1992. He delivered record sales and profits through the introduction of major product innovations, including Liquid Tide and Tide with Bleach, and by focusing on building strong brand franchises.
Lafley was succeeded as CEO of P&G by McDonald on July 1, 2009, when he moved on to a role of full-time chairman.
McDonald joined P&G in 1980 and served as a brand manager for Tide from 1984 to 1986. He was appointed vice chairman of global operations in 2004 and appointed chief operating officer in July 2007. He became president and CEO on July 1, 2009, and assumed the chairman of the board role on January 1, 2010.
McDonald said, "It has been a privilege to work with the people of Procter & Gamble to serve consumers around the world. I'm proud of what we have accomplished together, and I am confident in the Company's future."
The retirement of McDonald would see a smile on the face of activist investor William Ackman, who has recently been amassing shares in P&G to press for management changes and cost cuts in order to improve profitability at the company.
The pressure was already on McDonald after shareholders voted to lower the threshold for changing or adding board members to a simple majority, from the previous 80 percent voting requirement. This would have made it easier for changes in the event of a proxy war.
Additionally, P&G confirmed its guidance for the fourth quarter and full-year 2013 that was issued along with its recent third-quarter earnings release.
PG closed Thursday's regular trading session at $78.70, down $0.12 or 0.15% on a volume of 7.14 million shares. In the past 52-week period, the stock has been trading in a range of $59.07 to $82.54.
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