The Procter & Gamble Company board of directors announced the following organizational changes: A.G. Lafley, chairman and CEO, will move full-time into his role as chairman, effective July 1, 2009; Robert A. McDonald, currently COO, has been elected president and chief executive, effective July 1, 2009. McDonald has also been appointed a member of P&G's board.
Since becoming president and CEO in June 2000, Lafley has refocused P&G on consumer-driven innovation and consistent, reliable sustainable growth. The company has more than doubled sales since the beginning of the decade, and has grown its portfolio of billion-dollar brands (brands that generate at least $1 billion in annual sales) from 10 to 23. On average, organic sales have grown 5%, core earnings-per-share have grown 12%, and free cash flow productivity has increased 111% since 2001. The company's market capitalization has increased dramatically, according to a statement, making P&G one of the five most valuable companies in the U.S. and among the 10 most valuable companies in the world.
"A.G. Lafley has led the transformation of P&G during the past nine years," said Jim McNerney, presiding director of P&G's board. "P&G is a far more consumer-driven, externally focused and innovative company than it was a decade ago. P&G's organization is world-class. The board is confident that A.G. and Bob have made the right choices to deal with current economic realities, and have built the leadership team to guide P&G through the decade ahead. It's the right time for Bob to step up as CEO. The board is also pleased that A.G. will continue to serve full-time as P&G's chairman."
McNerney also expressed the board's confidence in Lafley's successor. "Bob McDonald is the most broadly and globally experienced CEO in P&G history. He has nearly 30 years of brand-building, market development, global business unit and global operations leadership experience across the company and throughout the world. Bob was elected president and chief executive through a rigorous, disciplined and multiyear succession process led by the board. The directors are confident in his business vision and strategy for sustainable growth as well as his ability to build and inspire the capability of P&G employees."
"I've worked with Bob for most of my career at P&G, and he and I have worked side-by-side in the past decade," said Lafley. "He believes in P&G's purpose and P&G people to his core. He has broad experience in every facet of P&G's business and in virtually every part of the world. He has a strong and consistent track record of business results and has been an integral member of my leadership team. He thinks strategically and operates systemically. He has my complete confidence and support."
A multimedia news release is also available.