A. G. Lafley

Alan G. "A.G." Lafley
Born	June 13, 1947 (1947-06-13) Keene, New Hampshire
Occupation	Chairman, Procter and Gamble
Salary	US$1.70 million salary, US$3.5 million in bonuses (2007)
Predecessor	Durk Jager (as CEO)
Successor	Robert A. "Bob" McDonald

Alan George "A.G." Lafley (born June 13, 1947) is the former Chairman of the Board, President and Chief Executive Officer of Procter & Gamble, retiring from the company in 2010. Lafley is largely credited for turning around P&G during his tenure under the mantra “Consumer is Boss.” During the decade of his leadership organic sales grew at an average rate of 5% pa and P&G’s share price doubled (albeit from a dramatic dip at the end of 1999).

Lafley graduated from Fenwick High School in Oak Park, Illinois, to earn an A.B. from Hamilton College in 1969. In 1970, after beginning a doctoral program at the University of Virginia, he took a commission with the U.S. Navy as a supply officer during the Vietnam War. Afterwards, he studied at Harvard Business School, receiving his M.B.A. in 1977. He joined P&G upon his graduation, where he worked until his retirement.

He is credited with revitalizing the company by focusing on P&G’s billion dollar brands like Crest, Tide, and Pampers, But he also brought in several new brands, like Swiffer and Febreze, by merging P&G’s internal resources with outside “open” innovation.

Lafley is a member of the General Electric board of directors and was named the chairman of Hamilton's Board of Trustees in December 2007.

He was awarded "CEO of the Year 2006" by Chief Executive Magazine and the Peter G. Peterson Award for Business Statesmanship presented by the CED in 2009. Lafley has also been announced as recipient of the 2010 Edison Achievement Award, an annual award recognizing leaders that have made significant and lasting contributions to innovation, marketing and human-centered design throughout their careers.

On April 8, 2008 Lafley and renowned strategy consultant Ram Charan published The Game Changer, an operating manager's guide to turning innovation into strategic advantage. Business Week selected The Game Changer as one of the year's "Top Ten Business Books". A.G. Lafley also authored the critically acclaimed article What Only the CEO Can Do published as the lead article in Harvard Business Review, May, 2009.

Compensation

While CEO of Procter & Gamble in 2008, Alan G. Lafley earned a total compensation of $25,568,212, which included a base salary of $1,700,000, a cash bonus of $4,566,100, stocks granted of $11,175,585, and options granted of $7,782,736.

To determine CEO A.G. Lafley’s bonus of $4 million, Procter & Gamble Co. retained last year's basic performance categories including total company factor, business unit factor, and Gillette integration. However, it switched shareholder return for organic sales growth under total company factor.

Lafley’s Legacy at P&G

With Lafley leading the company for most of the 2000s, P&G more than doubled sales since the beginning of the decade. During that time, the company’s portfolio of billion-dollar brands grew from 10 to 22 (adding previously-sold Folgers and Actonel would bring the total to 24) and the number of brands with sales between $500 million and $1 billion increased fivefold with Lafley at P&G’s helm.

On average, annual organic sales grew 5%, annual core earnings-per-share grew 12%, and free cash flow productivity averaged 112% a year since 2001. Further, during Lafley’s tenure, the Company’s market capitalization more than doubled, making P&G one of the five most valuable companies in the U.S. and among the 10 most valuable companies in the world.

Lafley is credited with making P&G a more consumer-driven and externally focused company—and with shaping a far more diverse, open, curious and courageous, connected and collaborative culture in which "innovation is everyone’s job."

A.G. Lafley Today

Today, as a highly sought-after speaker, teacher, consultant, and coach, A.G. Lafley continues his passion to affect positive change in individuals and organizations alike. He states, "This is what I like to do and do well... coach/have discussions about things I know how to do – industry and company transformation, business strategy and business models, innovation, leadership and make an impact, a positive change on the individual and his/her organization."

A.G Lafley is known as a talented and lively speaker, and he frequently speaks to groups of top management teams, global leadership executives, and high-potential leaders who can meaningfully impact the future course of their company and even their industry. A.G. Lafley's presentations are known for their open and unstructured dialogues, and he is often sought after by groups looking for something beyond a canned keynote.

External links

• The Game-Changer Book Review at Letters on Pages
• USA Today Q&A
• A.G. Lafley Profile Page at BigSpeak.com