PepsiCo names Nooyi CEO as Reinemund retires
Monday, August 14, 2006
PepsiCo Inc. is in line to get its first female chief executive before the end of the year. Steven S. Reinemund, chairman and CEO of the U.S. soft drink and snack food giant, announced his retirement via press release effective in May, 2007. Reinemund, 58, said he was leaving to spend more time with his family.
The same PepsiCo release confirmed that Indra Nooyi, currently president and CFO, will take over for Reinemund. Nooyi's current position will be split in two. The first is scheduled to be filled by Richard Goodman, 57, currently CFO of PepsiCo International, who will become CFO. Hugh Johnston, 44, currently senior vice president of transformation, was promoted to the newly created post of executive vice president of operations, procurement and information technology.
Nooyi, 50, is a Yale-educated daughter of a middle class Indian family, according to her official biography. She is scheduled to succeed Reinemund, in October, the company said. Reinemund reportedly will stay with PepsiCo until May, 2007. Together, Nooyi and Reinemund have guided PepsiCo through several large take-overs and has seen the company overtake The Coca-Cola Company both in terms of sales and market value.
Coca-Cola is still the No. 1 soft drink maker based on U.S. and global market share. A significant portion of PepsiCo's sales revenue comes from non-drink brands in its Frito-Lay and Quaker Oats product lines.
Some on Wall Street were surprised by Reinemund's retirement announcement, according to news reports. Monday, the stock (ticker:PEP) closed up $0.62 at $63.95 per share on the NYSE.
- Shelley Singh. "PepsiCo CEO Gotta Fill In Pretty BIG shoes" — , August 17, 2006
- Brad Dorfman. "PepsiCo names Nooyi CEO" — , August 14, 2006
- Mary Jane Credeur. "PepsiCo Chief Reinemund to Retire, Succeeded by Nooyi" — , August 14, 2006
- Press Release: "PepsiCo's Steve Reinemund to Retire as Chairman in May, 2007" — PepsiCo, August 14, 2006
- Jeremy W. Peters. "PepsiCo Names New Female Chief Executive" — , August 14, 2006
- Matinne Geller. "Nooyi expected to ease into Pepsi's top job" — , August 14, 2006
- "Pepsi market value overtakes Coke for first time in over 100 years" — , December 13, 2005
- Asha Rai. "India is familiar territory for Chris Sinclair" — , December 21, 2003
- Tom Costello. "Arch rivals: Coca-Cola vs. Pepsi" — , December 19,2003