BATAVIA, Ohio (AdAge.com) -- Procter & Gamble Co. Chairman A.G. Lafley will step down effective Jan. 1, and CEO Bob McDonald will add the chairman position, the company announced this morning, completing the transition that began earlier this year.
"I am retiring with confidence in Bob McDonald and his team," Mr. Lafley said in a statement. "Our strategies and plans are working." Mr. Lafley pointed to what he called a strong July-September quarter and expectations for sequential improvement over the rest of the fiscal year, which ends June 30. "This is the right time to complete our management transition," he said.
Mr. Lafley's departure comes faster than some expected, and faster than the extended period John Pepper served as chairman following his own appointment as CEO in 2000 -- but on a similar time frame to Mr. Pepper's chairmanship after Durk Jager became CEO in 1999.
"A.G. has worked side-by-side with me and our leadership team before and since I became CEO," Mr. McDonald said in a statement. "He has been one of the greatest chairmen and CEOs in P&G history. He cannot be replaced but I am honored to succeed him."