Procter & Gamble to replace CEO McDonald with Lafley

Procter & Gamble to replace CEO McDonald with LafleyProcter & Gamble Co., world's largest consumer-products maker, has replaced its Chief Executive Officer (CEO) Bob McDonald on Thursday with his predecessor, A. G. Lafley, effective immediately.

McDonald had taken in charge of the company in 2009 and was working to turnaround the company in the previous year with a plant to cut $10 billion in costs through 2016. He also planned to focus the company towards its leading businesses after it struggled to compete with the likes of Unilever.

Bill Ackman, which is an activist investor, had acquires a stake in the company valued at $1.8 billion in the previous year and moved to replace McDonald.

Lafley began working with the Cincinnati-based company in 1977. He has worked as president and CEO from 2000 to 2009 and will now replace McDonald with immediate effect. McDonald is set to retire on June 30 after 33 years of working. He is now expected to receive any severance payments from the company, it said in a release. Lafley will be eligible for a base salary of $2 million a year.

The shares of the company rose 4 per cent to $81.88 on Friday.