GLOBAL – UNITED STATES, MAY 27, 2013 – Procter & Gamble has announced that Alan George Lafley is returning to the company as president and chief executive officer, effective immediately, as Bob McDonald retires after 33 years in the company.
McDonald has been under fire for failing to pick up P&G’s revenue growth and performance, taking heat mostly from activist investor Bill Ackman. This was a year after he told Wall Street his plans to chop $1bn off the company’s $10bn annual budget and rely on social media for "free ad impressions", cut 5,700 jobs, and failed to translate all of that to results.
In his memo to P&G employees, McDonald referred to the sea of criticisms during the past year as "distraction that is not in our best interests". He continues: "I’ve always believed that we are a Company — One Company — comprised of great individuals. When we get to a point where too much attention becomes a distraction, it’s time to change that dynamic."
Lafley commented: “I wish Bob well, and thank him for his service to P&G. I am looking forward to working with P&G’s outstanding leadership team to continue to improve the Company’s performance. I am confident that we will deliver strong innovation, productivity and growth to win with consumers, customers and shareholders."
In the statement released to the press, Jim McNerney, presiding director of P&G’s Board, referred to Lafley’s "track record and his depth of experience at P&G" as his top qualifications to lead the company. During his tenure as CEO between 2000 and 2009, Lafley is credited to have led the company to a period of growth – with sales doubled and profits quadrupled – and the acquisition of Gilette which he oversaw in 2005.
"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,” said McNerney.
