Reports: P&G to shift McDonald to CEO post

CINCINNATI Procter & Gamble is expected to appoint COO Robert McDonald as its next CEO, succeeding A.G. Lafley, according to a Wall Street Journal report.

Citing people familiar with the situation, the board is expected to approve on Tuesday the appointment of the former 29-year company veteran. While a P&G spokesperson declined to comment, sources told the WSJ that Lafley will remain chairman, and likely will play a hands-on role in managing the company.

The transition is expected to take place on July 1.

During his tenure at P&G, Lafley has revitalized the company and coordinated the $57 billion acquisition of Gillette Co., creating a consumer products powerhouse with more than 20 billion-dollar brands.

The recession has hampered P&G's business as consumers are curbing spending, and in May, the company issued a lower-than-expected earnings forecast for fiscal 2010. But at least one source told the WSJ that Lafley's departure has been in the works for at least two or three years and is not related to any dissatisfaction with his performance.

McDonald, a West Point graduate who served as a U.S. Army captain, joined P&G in 1980. He rose through the ranks quickly, managing such brands as Solo, Cascade, Tide and Dawn. In the 1990s, McDonald spent his time in Asia as P&G expanded its reach beyond North America. In 2004, he was appointed vice chairman global operations and has served as COO for the past two years.