A.G. Lafley has been brought back as CEO of Procter & Gamble, the largest household products producer in the world. He replaces Bob McDonald effective immediately and this during a major restructuring at the company.
Lafley will immediately assume the roles of chairmain, president and CEO of Procter & Gamble. Bob McDonald will retire on 30 June, after 33 years with the company. This switch was made under pressure of some investors, who want the company to improve faster.
P&G is going through a restructuring programme of 10 billion dollar (about 7.73 billion euro). It has already cut several thousand jobs and is trying to improve its success with new products.
“Like duty called”
A.G. Lafley felt like he had no choice but to take the job: "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", Lafley told Reuters.
Lafley joined P&G back in 1977 and was president and CEO since 2000, until 2009 when he handed the sceptre to McDonald. McDonald, who was chosen by Lafley to succeed him, was not available for comment.
The retirement of Bob McDonald may have come as a surprise, but it was not surprising they chose Lafley to succeed him. "The board has a known quantity in Lafley. He knows everyone, he knows the systems, and now that Procter is on firmer footing, it expects Lafley to be able to push the company and its stock price higher”, said Matt McCormick, a portfolio manager at Bahl & Gaynor Investment Counsel in Cincinnati.