P&G’s Arnold Named Global Beauty Unit Vice Chairman Under Realignment

Procter & Gamble President-Global Personal Beauty Care and Global Feminine Care Susan Arnold will be promoted to vice chairman of the firm's global beauty care unit under a realignment plan announced May 19.

Effective July 1, the realignment organizes P&G's businesses into three units, global beauty care, global health, baby and family care and global household care, each headed by a vice chairman. The plan is intended to "streamline business operations and support the company for further growth," P&G stated.

Current President-Global Beauty & Feminine Care and Global Health Care Bruce Byrnes will assume new responsibilities as head of the global household unit. R. Kerry Clark, president-global market development and business operations, will be in charge of health, baby and family care.

In addition, President-Global Fabric & Home Care Robert McDonald will become vice chairman global operations. While Byrnes and Clark will continue as vice chairmen on P&G's board of directors, Arnold and McDonald will not become board members, the firm said.

The reorganization plan effectively creates a pool of successors for current CEO A.G. Lafley, although the exec has not announced plans to retire. While P&G will not comment on a potential replacement, the company said the board of directors does have a succession plan.

Lafley took to the helm at P&G from president-global beauty care and North America in 2000 (¹ (Also see "P&G Beauty Head Lafley Named CEO, Pepper Reinstated As Chairman" - HBW Insight, 12 Jun, 2000.), p. 11).

The exec oversaw the latter part of the company's five-year restructuring plan that began in 1998 and ended in 2003, a year ahead of schedule. The plan was intended to transform P&G into geographically focused global business units and market development organizations (² (Also see "P&G's market development units to address local strategy under reorganization effort." - HBW Insight, 14 Sep, 1998.), p. 1).

A day before announcing the realignment, Lafley told analysts at the Goldman Sachs Consumer Products Conference in New York City he credits the "strength and diversity" of P&G's structure with enabling the firm to "win in local markets" and creating "an ability to source and innovate on a global basis."

"This structure requires high levels of collaboration and these are hallmarks of P&G's 'promote from within' culture," he added.

Arnold, who has worked for P&G for more than 20 years, is a product of that culture, having begun her career at the firm as a brand assistant and later rising to positions including VP-North America fabric care and president-global skin care, before becoming head of the global personal beauty care business in 2000 (³ (Also see "P&G beauty changes" - HBW Insight, 31 Jan, 2000.), In Brief).

In her new position, Arnold's responsibilities will now include hair care and colorants. The exec will oversee five divisions - hair care, hair color & color cosmetics, skin care, prestige beauty & personal cleansing, feminine care, antiperspirants & deodorants, Old Spice and global professional hair & Cosmopolitan Cosmetics.

Mark Pritchard will become president-hair color & color cosmetics. The exec currently is president-global cosmetics, global deodorants/Old Spice and global retail hair colorants. President-Global Feminine Care Martin Riant will head the feminine care, antiperspirants & deodorants, Old Spice division.

Paolo de Caesare will remain in charge of prestige beauty & personal cleansing, while Heiner Gurtler, CEO of recently acquired Wella, will head global professional hair & Cosmopolitan Cosmetics. Gurtler will report to Lafley, while the other four execs will report to Arnold.

Chris de Lapuente becomes president-hair care, replacing 26-year veteran Martin Nuechtern, who is retiring June 30. De Lapuente is currently president of P&G's UK and Ireland business and has supervised the introduction of leading beauty brands there, according to the firm.

P&G's beauty business has seen a number of shifts in management responsibilities of late. Pritchard added global deodorants/Old Spice to his duties Jan. 1, but P&G noted that placing deodorants under Riant will allow him to focus on growing the cosmetics and hair colors businesses. The exec was promoted to president-global cosmetics and personal care from VP-global cosmetics and personal care last fall.

De Caesare was appointed VP-global prestige beauty and skin care in 2002 before assuming his current position, which included taking on Pritchard's personal cleansing responsibilities.