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.
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