Updated from Tuesday, June 9

Procter & Gamble ( PG) is expected to announce Wednesday that Chief Operating Officer Robert McDonald will become the company's CEO, a report says.

P&G employees on Tuesday received an email inviting them to watch a Webcast hosted by current CEO A.G. Lafley on Wednesday at 9:30 EDT. Lafley will retain his post as chairman of the company's board, the Wall Street Journal reports, citing people familiar with the situation.

The Journal reported that P&G's board, meeting Tuesday, was expected to approve the appointment of McDonald, chief operating officer, as the company's CEO.

Lafley served as CEO for nine years. The transition is expected on July 1, the Journal reports.

As CEO, Lafley orchestrated a $57 billion acquisition of Gillette Co. and more than doubled sales to $83.5 billion in the fiscal year ended June 2008. Central to his strategy was moving toward beauty and premium household products with higher profit margins, the Journal noted on Tuesday.

Lafley, who is almost 62 years old, is leaving earlier than many observers expected. Someone close to P&G said this transition timing has been in the works for at least two to three years and isn't related to any dissatisfaction with his performance, the Journal reports. According to another person close to P&G, the maker of Crest, Pampers and Tide products, Lafley has been looking to leave his CEO post for a couple of years but the board wanted him to remain.

Lafley expects to play a hands-on role in managing the company, the newspaper reports, citing a person familiar with the matter.

McDonald has been with P&G for 29 years. The 55-year-old is a veteran of the Asian businesses that P&G has increasingly targeted for growth and has worked closely with Lafley on P&G strategy.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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