P&G Shakes Up Leadership of Newly Acquired Gillette

Razor Company's Former CEO to Step Down in July

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CINCINNATI (AdAge.com) -- Procter & Gamble Co. today shook up senior management for the second time in as many months, making key leadership changes at the recently acquired Gillette business as former Gillette CEO James M. Kilts exits the organization.
A P&G executive is taking charge of the Gillette blade-and-razor unit.
A P&G executive is taking charge of the Gillette blade-and-razor unit.

Crucial unit
In a cultural swap of sorts, a career P&G executive will take charge of the crucial Gillette blade-and-razor unit. But an executive once said to have been proposed as Gillette's next CEO will stay on to head most of the Gillette businesses for P&G.

P&G said Mr. Kilts, 58, currently vice chairman, will step down as head of the Gillette unit on July 1 "to devote full attention" to the post-merger integration; he will leave the company when his one-year contract ends on Oct. 1. Mr. Kilts had been widely expected to step down by that time.

New group president
Mark M. Leckie, 52, formerly president of Gillette's Duracell and Braun divisions, will take over Mr. Kilts' duties (at a lesser rank) as group president-Gillette global business unit on July 1. He will report to P&G Chairman-CEO A.G. Lafley.

Two years ago when Mr. Kilts originally informed the Gillette board of his desire to retire, he proposed that Mr. Leckie succeed him as the company's CEO, according to people familiar with the matter. Mr. Kilts later started unsuccessful talks to acquire a competitor. Finally, he started talks to sell Gillette to P&G that concluded successfully in early 2005.

A P&G spokesman declined to comment on what he termed speculation regarding previous consideration of Mr. Leckie as Gillette CEO, but said: "Mark Leckie is very well-qualified for this position. He has long experience in the consumer products business, having worked at Gillette, Campbell's Soup, Kraft and Nabisco."

New razor-unit president
Though not announced externally today, career P&G executive Charles V. (Chip) Bergh, 48, will take over as president-global blades and razors, reporting to Mr. Leckie, effective Oct. 1. He replaces longtime Gillette executive Peter K. Hoffman, 57, who is retiring, P&G confirmed.

Mr. Bergh, who joined the Gillette unit as president on special assignment last year, is the highest-ranking P&G executive in the newly acquired company and will head the central piece of the $57 billion acquisition.

Joseph Dooley, 52, will become president of Duracell and will also report to Mr. Leckie. Mr. Dooley will leave his current position as president-North America commercial operations for Gillette, part of an operation being integrated into P&G's broader North American market-development organization.

Beauty-care moves
P&G also announced a series of moves involving beauty-care executives reporting to Susan Arnold, vice chairman-global beauty and health. The P&G spokesman characterized the moves as similar to others P&G has made the past two springs to "further strengthen our management team to drive sustainable growth."

Marc S. Pritchard, 46, president-global cosmetics and hair colorants, is moving to a new corporate post, president-global strategy, reporting to Mr. Lafley. Gina Coleman Drosos, 43, who was VP-global cosmetics, adds hair colorants to her duties but remains a VP based in Hunt Valley, Md. She'll report directly to Ms. Arnold, the P&G spokesman said. Cosmetics and hair colorants have been P&G's two most embattled beauty businesses in recent years, with Clairol having lost share since P&G acquired it and Max Factor losing distribution in Target and three of the top four U.S. drug chains earlier this year.

Mary Ann Pesce, 51, currently president-new business development in beauty care, takes over the deodorants and personal cleansing duties. She'll remain based at Gillette headquarters in Boston, the spokesman said.
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