Procter & Gamble Co. named Macy’s Inc. Chief Executive Officer Terry Lundgren to its board as the world’s largest consumer-products company works to boost sales and trim costs.
Lundgren, 60, joins the board immediately, the Cincinnati-based company said in a statement yesterday. Johnathan Rodgers, 66, decided not to seek reelection at P&G’s annual meeting in October, the company said. The former broadcast and television executive joined the board in 2001.
The appointment of Lundgren adds another CEO to P&G’s board as it monitors Chief Executive Officer Robert McDonald’s plan to cut expenses and regain market share in key categories. Until Angela Braly resigned as WellPoint Inc.’s top executive in August, six of the 10 outside directors on P&G’s board were active CEOs, the highest number of any company in the Standard & Poor’s 500 Index at the time, according to an analysis by GMI Ratings in New York.
P&G dropped 0.2 percent to $68.51 at the close in New York yesterday. The shares gained 1.8 percent last year, while Macy’s climbed 21 percent. The Standard & Poor’s 500 Index rose 13 percent in 2012.
Lundgren will serve on the governance and public responsibility and the innovation and technology committees of the board, the same ones Rodgers has served on. Lundgren has been chairman, president and CEO of Macy’s since 2004.
P&G’s board is one of the strongest in the world, and its directors are “fully engaged,” Paul Fox, a spokesman, said in an e-mailed statement. Average attendance at meetings exceeds 97 percent and the company’s CEO directors are limited to serving on three boards, including P&G, he said.
Fox also pointed to a 2011 study from the Conference Board that showed that 56 percent of the directors of companies with $5 billion or more in revenue were CEOs, presidents or chairmen of for-profit companies and that P&G was in line with this average.