Procter & Gamble says retiring CEO Robert 'Bob' McDonald will be replaced by former CEO A.G. Lafley, effective immediately.
According to company officials, Lafley has also been elected to the Board of Directors and will serve as Chairman.
Lafley first joined P&G in 1977, and served as President and CEO from 2000-2009.
He succeeds McDonald, who plans to officially retire from the company on June 30, 2013 after 33 years of service.
"A.G.'s track record and his depth of experience at P&G make him uniquely qualified to lead the Company forward at this important time. The Board expects A.G. to further improve results, implement the current productivity plan, and facilitate an ongoing succession process. The Board is confident that he will continue improving P&G's performance," said Jim McNerney, presiding director of P&G's Board.
Cincinnati-based P&G serves approximately 4.6 billion people around the world with several of its products, ranging from Tide detergent to Swiffer sweepers.
Under McDonald, P&G had some stumbles. Those included pricing missteps and expanding too rapidly in some emerging markets, leading to lower revenue growth than shareholders expected.
In P&G's most recent quarter, net income rose 6% as the company cut costs, but fourth-quarter guidance was below expectations.
Shares edged up 41 cents in aftermarket trading to $79.11.