P & G's A.G. Lafley honored.After the closing bell on July 12, more than 200 of America's business leaders and their guests filled the floor of the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. to honor the 2006 Chief Executive of the Year, A.G. Lafley. In assuming the title, Lafley joined a list notable for including luminaries such as Jack Welch For the illustrator named Jack Welch, see Jack Welch (illustrator) John Francis "Jack" Welch, Jr. (born on November 19 1935 , Andy Grove, Herb Kelleher, Michael Dell and Bill Gates. [ILLUSTRATION OMITTED] The 29-year P & G veteran was an "easy choice" for Chief Executive magazine's selection panel, outgoing CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Year George David, chairman and CEO of United Technologies, told the crowd. "A.G. Lafley is known for productivity, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , performance and most of all for P & G's commitments to the highest standards of corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. and environmental stewardship," said David. "Total shareholder return at P & G since he became CEO in 2000 is 60 percent--decisively over the Dow Industrial average of 16 percent for that time period--at a time of flatter markets for large cap companies in America." And shareholder return is just one measure of the revitalization engineered by Lafley at the 169-year old institution's helm. Steering a strategy of cost-cutting coupled with product innovations, he reenergized core brands--including Pampers Pampers is a brand of disposable diaper (or nappy) marketed by Procter & Gamble worldwide. Product information Diapers Pampers Diapers come in sizes going all the way up to Size 7. , Tide and Crest--plagued by flattened volumes and shrinking profit margins. Leading acquisitions of Clairol in 2001, Wella in 2003 and Gillette in 2005, he further strengthened the company's product portfolio, bringing operating margins to an impressive 19.4 percent. [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] "We have been willing to change anything and everything," noted Lafley, commenting on the intense global competition that spurred P & G's strategy shifts. "I'm very cautious about using a word like transformation. But I think it's a good way to describe the level and pace of change necessary for sustainable growth and consistent value creation." In accepting the CEO of the Year title, Lafley thanked P & G's 135,000 employees, as well as his wife, Margaret, and family. "This recognition means a lot to me because it comes from peers," he added. "Peers understand the challenges and responsibilities, ins and outs ins and outs pl.n. 1. The intricate details of a situation, decision, or process. 2. The windings of a road or path. and ups and downs ups and downs pl.n. Alternating periods of good and bad fortune or spirits. ups and downs Noun, pl alternating periods of good and bad luck or high and low spirits of being a CEO. And peers in my experience are always the toughest graders. They understand sustained growth, value creation, ongoing transformation and inspirational leadership are hard work." In closing, Lafley, urged business leaders to commit to good corporate citizenry and promised to continue P & G's commitment to provide safe drinking water drinking water supply of water available to animals for drinking supplied via nipples, in troughs, dams, ponds and larger natural water sources; an insufficient supply leads to dehydration; it can be the source of infection, e.g. leptospirosis, salmonellosis, or of poisoning, e.g. to children in impoverished regions of the globe. "We must not only sustain growth, we must also contribute to the sustainability of the world we live and work in," he noted. "Of the world's 100 largest economies, 42 are corporations. We need to ask ourselves how we can use our talent, technologies, human capital and global presence and experience to help ensure a sustainable future for people who need help and hope." [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] |
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