P&G bringing back its former CEO
P&G bringing back its former CEO
Procter & Gamble is replacing chief executive Bob McDonald with his predecessor, A.G. Lafley, as the world’s largest consumer-products maker struggles to rekindle growth at home and abroad.
McDonald embarked on a turnaround plan last year to cut $10 billion in costs through 2016 and renew focus on the company’s leading businesses after losing market share to such rivals as Unilever. Activist investor Bill Ackman bought a stake valued at $1.8 billion last year and pushed to replace McDonald.
P&G’s shares advanced 4 percent Friday, to $81.88, the stock’s biggest one-day gain since October 2009.
Lafley, 65, who started working at the Cincinnati-based company in 1977 and served as president and CEO from 2000 to 2009, will succeed McDonald immediately, P&G said. McDonald, 59, will retire on June 30 after 33 years of service and won’t receive any severance payments, the company said.
“The board called me and asked me if I would come back, and frankly, duty called,” Lafley said in a telephone interview. “I’m back. I’m full on, I’m engaged, and I’m ready to get into the business.”
Lafley, who will earn a base salary of $2 million a year, said he plans to continue McDonald’s turnaround plan.
— Bloomberg News
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