P&G confirms McDonald to succeed Lafley as Chairman

Earlier this year, McDonald took over the role of president and CEO from Lafley, who continued to serve as chairman in accordance with company practices to support the management transition.

McDonald will take on the role of chairman in addition to his current responsibilities, said P&G.

Bob McDonald steps into the big shoes​

"The Board is confident that now is the right time for Bob McDonald to serve as both chairman and chief executive officer,"​ Jim McNerney, presiding director of P&G's Board said in a statement.

Concurring this sentiment, Lafley said: “I am retiring with confidence in Bob McDonald and his team[…]This is the right time to complete our management transition.” ​

Since Lafley was appointed president and CEO in June 2000, company sales since the beginning of the decade have more than doubled, according to P&G, who added that its portfolio of billion-dollar brands (brands that generate at least $1bn in annual sales) have grown from 10 to 22.

Organic sales continue growth​

On average, annual organic sales have grown 5 percent, core earnings-per-share have grown 12 percent a year, and free cash flow productivity has been 112 percent a year since 2001, said the company.

Commenting on succeeding Lafley, McDonald described him as “one of the greatest Chairman and CEO’s in P&G history,”​ adding that he was “honored” ​to succeed him.

After handing over the position of chairman to McDonald on 1 January 2010, Lafley will retire from the company on 25 February.

After posting disappointing fourth quarter results that saw profits fall by 18 per cent, P&G appeared to have turned a corner with first quarter results that beat market expectations.

For the 2010 fiscal year, the company expects net sales to grow by 3 – 6 percent, largely due to the fact that the US dollar is predicted to weaken in the course of the year, which will help to boost overseas revenues.