Procter & Gamble (NYSE: PG) Names Bob McDonald as New CEO

Procter & Gamble Co. (NYSE: PG) named Bob McDonald as their new CEO, according to reports on Wednesday.

McDonald, a 27-year veteran of P&G, will take the helm effective July 1. The decision was made just one day after its board meeting in Cincinnati commenced.

A.G. Lafley, who became chief executive nine years ago this week, will remain as chairman. He will be 62 Saturday.

McDonald will turn 56 later this month, before he moves up from chief operating officer to become company president and the 12th CEO in P&G's 172-year history.

McDonald believes that P&G, whose revenues have decreased during this recession, can more than double its annual sales, to $175 billion a year, over the next 15 years by increasing its reach into countries such as India, China and Brazil. McDonald’s expertise is in global branding and has extensive experience in the Asian region.

Procter & Gamble’s stock price rose 16 cents to $52.57 in morning trading. The stock has traded as high as $73.57 as recently as last September before falling as low as $43.93 earlier this year.

McDonald served as a U.S. Army captain before joining P&G in 1980. Early in his career, he worked with dishwashing and laundry products before heading to the Philippines in 1991, then Japan, and rose within a decade in Asia to become president for Northeast Asia in 1999. He became vice chairman for global operations in 2004.

McDonald became chief operating officer in 2007 during a re-organization in which Susan E. Arnold was named president for global business units. McDonald became the frontrunner to become CEO after Arnold stepped down in March. Arnold began with P&G in 1980, the same year as McDonald.

The company also has made other leadership changes in recent months, including Jon Moeller succeeding Clayton Daley Jr. as chief financial officer and Marc Pritchard taking over as global marketing officer for Jim Stengel.

Profit for P&G's fiscal year that ended June 30, 2008, rose 17 percent to $12.1 billion. Sales grew 9 percent to $83.5 billion, more than double the annual sales when Lafley took over in 2000. Lafley, then the head of Procter & Gamble's global beauty and North America businesses, was asked to suddenly replace Durk Jager on June 8, 2000.

P&G focused on key brands -- it now has 23 with at least $1 billion each in annual sales compared to 10 in 2000 -- and sold off slower-growth brands such as Comet cleanser, Sure deodorant and Folgers coffee under Lafley. Just last week, P&G said it would phase out U.S. sales of Max Factor cosmetics, where they have been small compared to overseas markets.

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