CL Colgate Palmolive Co

Colgate-Palmolive Inc. promoted two company veterans as part of a plan to line up an eventual successor to Chief Executive Ian Cook, who has run the company for nine years, according to people familiar with the moves.

Justin Skala and Noel Wallace are now the front runners to succeed Mr. Cook, 63, who is expected to step down within the next five years, the people said. Both men will assume chief operating officer roles starting Friday, according to a regulatory filing by the company.

Fabian Garcia, a third potential successor to Mr. Cook, is resigning as a chief operating officer to be head of Revlon Inc., the embattled beauty company. Mr. Garcia, 56 years old, was ready to be a CEO and believed Mr. Cook didn't plan to retire soon, people familiar with the matter said.

In their new roles, Mr. Skala, 56 years old, will oversee North America, Europe, Africa and global sustainability; Mr. Wallace, 51 years old, will be in charge of global innovation and growth and the company's Hill's pet food line.

Mr. Skala and Mr. Wallace will receive options to purchase $2.3 million each in stock that vests gradually over five years. The executives also received performance-based restricted stock that could be worth $750,000 and will vest in five years.

The two executives "are in an absolutely dead heat" to succeed Mr. Cook, one person familiar with the matter said. Several other executives were reassigned as part of a larger plan to develop a next generation of leaders within the company, people familiar with the moves said.

Franck Moison, another senior executive, will become vice chairman in charge of Colgate's Asia Pacific and Latin America operations and business development. Mr. Moison, 62 years old, isn't in the running for CEO partly because he is close in age to Mr. Cook, the people familiar said.

The New York-based company didn't respond to requests for comment and to speak with the newly promoted executives or Mr. Garcia.

Colgate has historically been deliberate in its grooming of future CEOs. Mr. Cook, who has been with the company for 40 years, was picked as the likely successor to then Chief Executive Reuben Mark in 2004, three years before he would assume the role from the veteran leader.

This CEO race is happening in a time of greater uncertainty for the maker of its namesake toothpaste, Palmolive dish soap and Speed Stick deodorant. After decades as a steady and solid performer—between 1994 and 2014 Colgate stock rose by more than 800%, while the S&P 500 tripled—the company has hit some bumps.

Like many consumer-products companies that do a lot of business abroad, Colgate sales have been hit hard by the stronger U.S. dollar. The company said earlier this month that it would cut additional jobs as part of a restructuring program that was originally slated to end this year.

Amid continuing dollar pressure, Colgate has raised prices in recent quarters in an attempt to support profit. The company lifted prices 4% in the December period. In addition to raising prices, the company has moved to cut costs and brought overhead expenses down 10% in the December quarter.

Suzanne Kapner contributed to this article.

Write to Joann S. Lublin at joann.lublin@wsj.com and Sharon Terlep at sharon.terlep@wsj.com

(END) Dow Jones Newswires

March 29, 2016 16:45 ET (20:45 GMT)

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