The Wall Street Journal (WSJ) recently reported that
The Procter & Gamble Company's
) freshly appointed chief executive officer (CEO), Alan George
Lafley, was planning to promote four senior executives as
presidents of four re-organized sectors who will directly report
Last week, P&G brought back its previous CEO Lafley to
immediately replace its existing CEO Robert McDonald, to revive
the consumer giant's current struggling business.
WSJ reported that people who are in the know said that Lafley
will re-group P&G's various brands and products into new
sectors that will be headed by four new senior executives from
the company. The four new presidents will probably be in line to
succeed Lafley as the latter is not expected to serve P&G for
more than 2-3 years, considering he turns 66 next month.
WSJ reported that people aware of the matter said that
possible candidates include Melanie Healey, group president of
North America; David Taylor, group president of global home care;
Martin Riant, group president of global baby care; Giovanni
Ciserani, group president of global fabric care; and Deborah
Henretta, group president of global beauty care.
Lafley has re-joined P&G as President and CEO and will
also chair the board of directors. Joining the company in 1977,
he became the President and CEO of P&G in 2000 and continued
It is widely rumored that McDonald was asked to step down as
P&G's results and turnaround efforts were not showing any
material improvement. Fiscal 2012 (ending Jun 2012) was a tough
year for P&G and it performed below its expectations in the
year. McDonald's fiscal 2012 pay was shrunk by 6.1% due to the
sluggish profits and revenue performance - a clear sign that his
job might be at stake. However, the first two quarters of fiscal
2013 were much better, proving to be a breather for McDonald. The
relief however, was short lived as the company posted mixed
third-quarter results in late April. Though earnings exceeded
management's expectations on strong cost savings, organic revenue
growth was quite weak. Its fourth-quarter outlook was also quite
subdued with earnings expected to decline from the year-ago
results, further adding to McDonald's woes.
McDonald embarked on a turnaround plan to implement some
meaningful changes to re-accelerate its top and bottom-line
growth keeping in pace with the peer companies. However, the plan
has not yielded any substantial results so far.
P&G carries a Zacks Rank #3 (Hold). Other consumer staples
stocks that are worth considering include
Flower Foods, Inc.
), carrying a Zacks Rank #1 (Strong Buy) and
Campbell Soup Company
H. J. Heinz Company
), both carrying a Zacks Rank #2 (Buy).
CAMPBELL SOUP (CPB): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
HEINZ (HJ) CO (HNZ): Free Stock Analysis
PROCTER & GAMBL (PG): Free Stock Analysis
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