• Cincinnati Enquirer, Tuesday, March 10, 2009 10:47 AM

Susan Arnold's announcement Monday that she is following through on a long-formulated -- if closely guarded -- plan to retire at age 55 has wags wondering who will succeed A.G. Lafley as head of Procter & Gamble. Lafley turns 62 in June; P&G's mandatory retirement age is 65.

David Holthaus reports that most speculation centers on COO Robert McDonald, who began working at P&G in 1980 as a brand assistant on the now-defunct Solo brand and has worked his entire career there. "Bob McDonald looks to have the position sewn up," says Matt McCormick, who follows P&G for Bahl & Gaynor. The native of Gary, Ind., is a graduate of the U.S. Military Academy at West Point and served in the U.S. Army as a captain from 1975 to 1980. He spent most of the 1990s working to expand P&G's footprint in Asia.

In a recent analysis of likely successors to Lafley, Sanford C. Bernstein & Co analyst Ali Dibadj cited McDonald's broad experience in marketing, sales and operations, as well as his global experience, particularly in Asia, as key strengths.

The transition could begin sometime this year, analysts say. Dibadj says he expects a succession announcement before the end of the year, with Lafley continuing as chairman, mentoring a new CEO for up to two years.

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