Lafley returns to lead Proctor & Gamble

Former CEO of Proctor & Gamble A.G. Lafley has returned once again to lead the company. The announcement of his return triggered a spike in the share price of company stock, but revived some questions about his tenure before and the value of leaders who are on their second tenure.

The board of directors at P&G voted to bring Lafley back to be the replacement of Bob McDonald, who on Thursday resigned. Lafley was CEO between 2000 and 2009 and was praised for having calm charisma and a strategic mind.

However, some people quickly noted that Lafley himself chose McDonald to be his successor.

One analyst said that Lafley had been responsible for some of the problems facing P&G, but with an amount of hindsight and a touch of external perspective, he might be an even better CEO the second time round.

Shares of P&G closed on Friday up 4% at $81.88. The company offered no answers to anyone whether Lafley would be the permanent CEO at P&G or just an interim one who helps find another replacement in the future.

Lafley was the driving force of the P&G expansion into the world’s emerging markets and into the beauty business through the acquisition of Gillette in 2005 for $57 billion, along with the 2003 purchase of Wella.

Nevertheless, analysts today, believe the Olay beauty brand and Pantene are weak spots for P&G.

P&G in January of 2012 took a non-cash write down of $1.5 billion to fall into value of its businesses it had acquired as part of Wella and Gillette.