Procter & Gamble (NYSE:PG) announced Thursday evening that it has decided to reinstate former CEO Alan George Lafley, to replace, effective immediately, the current CEO, Robert McDonald, while the largest producer of Goods consumer wants to increase its market share. Laffley will takeover the roles of chief executive officer, chairman and president.
The company did not specify the reasons for which Robert McDonald, the head of Procter & Gamble since 2009, decided to retire from office. Alan George Lafley, 65, served as CEO of Procter & Gamble from 2000 2009.
P&G stock was up 4% today on NYSE, trading around $82.
This change at the top of Procter & Gamble comes at a time when the manufacturer of brands such as Tide, Pampers and Gillette faces greater competition and a difficult economic environment globally. A $10 billion restructuring program was started in 2012 which planned for thousands of job cuts.
“Bob retired, the board called me and I felt like duty called. I’m back to help maintain the business momentum and keep this productivity program going,” said the new P&G CEO.
Alan George Lafley, a veteran executive who has worked for 33 years in the consumer goods industry, will be responsible for Procter & Gamble recovery by focusing on innovation and consumers. Lafley is the one who orchestrated the takeover of Gillette Co. in 2005 for $57 billion dollars.
“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,” said Jim McNerney, chairman of the board.
Procter & Gamble is famous for its brands but in recent years the company has recorded a growth slowdown in the developed markets of North America and Europe. Like its competitors, P & G has expanded rapidly in emerging markets where it faces tough competition from smaller rivals such as Unilever and Colgate-Palmolive. Investors have expressed dissatisfaction with the slow revenue growth and stagnant market share considering that P & G needs to streamline operations and improve results.
Reply