Lafley, who will be moved upstairs into an executive chairman role to lead the board of directors, will continue to provide advice to Taylor.
Taylor joined the FMCG giant back in 1980 and has helped to build core brands in areas such as home care and family care – two areas he has led to consistent double-digit profit growth, according to P&G.
He also has vast international experience having led P&G’s interests in regions such as North America, Europe and Asia.
Lafley, who originally served as P&G boss between 2000 and 2009, was brought back to lead the business in May 2013 as it implemented plans to divest up to 100 brands and streamline its brand portfolio.
“We thank A.G. for returning as CEO to lead P&G’s transformation,” says Jim McNerney, lead director of P&G’s board.
“The company is now organised into four industry-based sectors with a focused portfolio of 10 categories and 65 brands that play to P&G’s strengths. Now is the time to transition to David as CEO.”
The outgoing CEO says Taylor will lead P&G during the “most comprehensive transformation” in its history.
“We are a more focused and balanced company, committed to winning with consumers and creating value for shareholders,” adds Lafley.
“The Board and I are confident that now is the time to transition the CEO role to David who will sharpen the strategies and lead the execution of the next important phase of building a better P&G.”
The experienced Taylor, who has worked closely with Lafley in the past, says he is “honoured” to take up the role.
He concludes: “I believe in the power of P&G people, brands, products and values. P&G is transforming to be a faster-growing, more profitable company. I am committed to the strategies and look forward to leading the people of P&G to win with consumers and drive growth.”