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McDonald named P&G chairman; Lafley to retire
December 8th, 2009
CINCINNATI – Procter & Gamble Co. chief executive officer Robert McDonald has been elected chairman, succeeding A.G. Lafley, who plans to retire early next year.
P&G said Tuesday that Lafley, 62, is slated to step down from the chairman's role on January 1 and to retire from the company on February 25.
The 56-year-old McDonald, who also holds the title of president, will take over the chairman's duties on January 1, the consumer products giant said.
McDonald succeeded Lafley as CEO in July. P&G said Lafley has continued to serve as chairman to support the management transition, a practice that the company has followed during management changes over decades.
"I am retiring with confidence in Bob McDonald and his team," Lafley said in a statement. "Our strategies and plans are working. The company delivered a strong July-September quarter, and we expect sequential improvement over the balance of the fiscal year. P&G is innovating across the business, investing in near-and longer-term growth, and maintaining rigorous cash and cost discipline. This is the right time to complete our management transition."
Since Lafley became president and CEO in June 2000, P&G has more than doubled sales and grown its portfolio of billion-dollar brands from 10 to 22, according to the company. P&G's market capitalization also has more than doubled during that time, making it one of the five most valuable companies in the United States and among the 10 most valuable companies in the world.
"A.G. has worked side-by-side with me and our leadership team before and since I became CEO," McDonald stated. "He has been one of the greatest chairmen and CEOs in P&G history. He cannot be replaced, but I am honored to succeed him."
P&G also announced Tuesday that Angela Braly, president and CEO of health benefits provider WellPoint Inc., has been named a director on the board. The appointment is effective immediately.