Six executives leave P&G in one year

Updated: 2013-02-28 13:41

By Mao Jing (Chinadaily.com.cn)

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The consecutive departure of backbone seniors of Protector & Gamble (China) has generated a butterfly effect, according to 21cbn.com.

The recent resignations in P&G have no significant relationship with the company’s remuneration and it is likely that the executives left because their ideas could not be implemented, said Liu Jin, associate professor atShandongJiaotongUniversityand brand marketing consultant.

A researcher working in the cosmetics industry who did not wish to reveal his name said that the resignations from the executives may have been due to the pressure to make outstanding achievements.

The former president of sales for P&G Greater China, Zhai Feng, suddenly left the company four months ago. Liu Hua (pseudonym), former staff member of P&G (China)Shanghaibranch, suggested that Zhai’s departure was related to economic problems reported by his ex-wife. But Zhai has denied the rumor as “completely untrue”.

“Zhai managed an annual amount of over 30 billion yuan in sales and had thousands of millions in control which had to be spent. Of course, this money can not be put into his pocket directly but it can go through agencies such as advertising and storage shelves. The company would not talk about these things openly concerning its own reputation,” Liu said.

In response to Liu’s accusation, P&G emphasized zero tolerance for any violation of the company's global standards of business conduct and ethics. “We have a robust operating, audit and supervision system, we strongly refute any allegations against this trumped,” the company replied in an email to 21cbn.com.

Following the resignation of Zhai, the president of the P&G Beijing research center announced his resignation and switched to LeFeng.com in the second half of 2012. Over the same period, the executive in charge of the R&D department left for L'Oreal, and at the end of 2012, a third person in charge of the department went to Shiseido. By the end of Feb 2013, the public relations director of P&G Greater China,ChenMo, also announced his resignation after working five years in P&G.

“We will not make any comment for employees who leave for personal reasons, and the company’s personnel reserve and training system can ensure stable operation will still continue in the case of personnel changes from time to time,” a spokesperson from P&G told 21cbn.com.

Some industry insiders explained that executives flee on the one hand because competitors frequently make generous offers, and on the other hand because the company's internal uneven distribution of benefits make the R&D department suffer an “oil shortage” and long standing grudges are held.

P&G had won for four consecutive years in the CCTV advertising bidding. In 2006, P&G made first place again in winning the bid amounting to 420 million yuan. However, in the tender in 2013, P&G’s ranking slipped to 20.

“P&G (China)’s frequent introduction of new brands in recent days is probably to enhance its staff and the market’s expectation of it,” Liu said.

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