Search
 

P&G's Scrubbing

Big corporations need to have better succession plans when replacing chief executive officers.

By Tony LoPinto | Updated on May 28, 2013
P&G’s Scrubbing

Last week consumer product behemoth P&G announced that the board booted CEO Robert MacDonald, and replaced him with the former chief executive, 66-year-old A.G. Laffley. Under his watch, MacDonald produced poor performance and a string of defections from the company’s executive ranks. Laffley was brought back because there were no internal candidates who are ready for the top spot. I find it amazing that large global corporations cannot get their act together and produce an ongoing and effective succession plan that provides internal alternatives to replace a departing chief executive. Alas this is not unique to P&G. All too often, we observe that companies trumpet that they have a succession program only to find that when the need arises, the board goes outside to fill the CEO’s shoes. Succession planning is singularly the most important role of the board, but often under the influence of a strong CEO who figures he or she is there for the duration, succession planning is relegated to a lower priority.

Tony LoPinto

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.