P&G Directors Unhappy With CEO

As activist investor Ackman takes stake, board said to discuss replacing McDonald.

Procter & Gamble Co. board members are dissatisfied with Chief Executive Officer Robert McDonald’s performance and are discussing a possible leadership change, according to people familiar with the situation.

Some P&G directors are talking about contacting former executives to potentially take the top job, said one of the people, who declined to be identified because the matter is private. James McNerney, who is chairman of the board’s compensation and leadership development committee, has told other members of the board he is unhappy with McDonald’s performance, especially after the company cut forecasts three times this year, another person said.

‘Smidgen Premature’

“If he has lost the confidence of the board, I’m sure they are going to make a change,” Janna Sampson, who helps manage about $2.9 billion, including P&G shares, at OakBrook Investments in Lisle, Illinois, said by telephone. “But it does seem a smidgen premature. I’m not sure the problems are of the CEO’s making. He started in a tough economy, and it’s not gotten much better.”

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