PepsiCo's names Ms. Indra Nooyi as New CEO
PepsiCo's names Ms. Indra Nooyi as New CEO
PepsiCo's names Ms. Indra Nooyi as New
PepsiCo Inc. named Indra Nooyi as chief executive, succeeding Steve Reinemund, the soft-drink and snack-food company said Monday. With the move, Ms. Nooyi becomes one of the most prominent woman in corporate
Ms. Nooyi's appointment is effective Oct. 1. Mr. Reinemund said he is stepping down to spend more time with his family.
Ms. Nooyi, 50 years old, joined Purchase, N.Y.-based PepsiCo -- whose brands include Gatorade sports drinks, Frito-Lay snacks, Quaker oatmeal and its namesake cola -- in 1994 and has served as president and chief financial officer for about five years.
"We are exceedingly fortunate to have a leader of Indra's caliber, vision and experience take the helm," presiding director Robert Allen said in a statement. "She has been instrumental to PepsiCo's solid direction and ongoing success and has the complete endorsement and support of the board."
Ms. Nooyi, who was raised in a middle-class family in
The board had made it clear they didn't want to lose Ms. Nooyi. In 2004, she was one of only two Pepsi executives granted multimillion-dollar restricted stock awards that require them to stay until 2009 to cash in. The other executive to receive the service-based award was Michael White, head of Pepsi's international business.
In becoming
Mr. Reinemund, 58 years old, will serve as executive chairman of PepsiCo and will continue to sit on the board until his retirement next May. He has been with the beverage and food giant for 22 years and spent more than five years as chairman and
"I have decided that my family is entitled to more time from me than the responsibilities and obligations of continuing as PepsiCo's
PepsiCo also said Ms. Nooyi's current responsibilities will be divided between two executives. Richard Goodman, currently CFO of PepsiCo International, will assume the position of CFO for the corporation with responsibility for tax, treasury, control, risk management, and audit and investor relations. And Hugh Johnston, currently senior vice president in charge of transformation, has been promoted to the newly created position of executive vice president, operations, and will add global procurement and information technology to his responsibilities.
Last month, PepsiCo reported a 14% increase in second-quarter profit and raised its full-year earnings outlook, reflecting continued strength from major brands like Gatorade and emerging markets such as
Shares of PepsiCo, which ranks second to Coca-Cola Co. in the soft-drink market, added 13 cents to end Friday's trading at $63.33.
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