P&G CEO McDonald exits

Procter & Gamble’s beleaguered CEO Bob McDonald is to leave the FMCG firm and be replaced by his predecessor, former P&G president and CEO Alan George “A.G.” Lafley.


Lafley, a former marketer who joined P&G as a brand manager in 1977, is coming out of retirement to rejoin P&G as CEO and president. He will also chair the board of directors.

He left the FMCG firm in 2009 after more than 40 years with the firm. Lafley is also said to be behind P&G’s acquisition of Gillette in 2005.

McDonald has been under pressure from investors, particularly major shareholder Bill Ackman who has been vocal in calling for McDonald to step down, to improve profit and growth since taking on the role four years ago.

In his time as CEO McDonald has struggle to grow revenue, profit and share price in line with expectations and has presided over several quarters of disappointing growth.

There has also been concern over the rate of innovation at the firm and it outlined plans to triple the rate of innovation late last year.

The news was announced after markets closed in the US where P&G is listed so any impact on share price remains to be seen.

The Wall Street Journal has quoted a memo sent by McDonald citing attention on him personally was “distracting” for the business.

“When we get to a point where too much attention becomes a distraction, it’s time to change that dynamic,” the memo read.

McDonald will retire on 30 June 2013 after 33 years with the company.

Jim McNerney, presiding director of P&G’s Board, says: “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. The board expects A.G. to further improve results, implement the current productivity plan, and facilitate an ongoing succession process. The board is confident that he will continue improving P&G’s performance.”

P&G posted worse than expected sales and profit in its third quarter update last month, but stood by its commitment to invest in brands and product innovation to drive long-term growth. Lafley is expected to continue P&G’s $10bn cost-cutting and efficiency drive.

Biography Alan George “A.G.” Lafley
1977 – Joined Procter & Gamble as Brand Assistant of Joy
1978 – Assistant Brand Manager of Tide
1980 – Brand Manager of Dawn & Ivory Snow
1981 – Brand Manager of Special Assignment & Ivory Snow
1982 – Brand Manager of Cheer
1983 – Associate Advertising Manager of PS&D Division
1986 – Advertising Manager of PS&D Division
1988 – General Manager of Laundry Products of PS&D Division
1991 – Vice President of Laundry and Cleaning Products, Procter & Gamble USA 1994 – Group Vice President of The Procter & Gamble Company, and President of Procter & Gamble Far East
1995 – Executive Vice President of The Procter & Gamble Company, (President-Asia, Procter & Gamble Asia)
1998 – Executive Vice President of The Procter & Gamble Company, (President-North America, Procter & Gamble North America)
1999 – President of Global Beauty Care and North America
2000 – 2009 – CEO and President of Procter & Gamble
2009 – Chairman of Procter & Gamble

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here