P&G's Succession Race Narrows

The pathway to the chief executive's chair at Procter & Gamble (PG) now looks clear for Robert McDonald. The chief operating officer of the consumer packaged goods giant emerged on Mar. 9 as the No.1 candidate to take the helm once current CEO A.G. Lafley retires—a move many expect to be announced within a year.

McDonald had shared top-contender status with Susan Arnold, president of P&G's global business units. But P&G said Monday that Arnold, one of the top-ranking women in business, is retiring and that the executives who reported to her will now report directly to Lafley. P&G said that Arnold, who turned 55 on Mar. 8, will step down as president immediately but will remain with the company to work on special assignment until September. "It has long been her intention to step down upon her 55th birthday," the company said in a prepared statement