Purchase, Aug 14: PepsiCo Inc said on Monday that its president and chief financial officer Indra K Nooyi will become chief executive officer of the world's second-largest soft-drink maker.
Nooyi, 50, is slated to replace CEO Steven Reinemund on October 1.
Reinemund, 58, will continue as chairman of the board until his retirement in May 2007. Reinemund has worked for PepsiCo for 22 years, serving as chairman and CEO for five. He said in a statement he is retiring to spend more time with his family.
Nooyi's CFO responsibilities will be divided between PepsiCo International CFO Richard Goodman and Senior Vice President Hugh F Johnston.
Goodman, 57, will become CFO for the corporation overseeing tax, treasury, control, risk management and audit and investor relations. Johnston,44, will be named executive vice president, adding global procurement and information technology to his duties. Both will report to Nooyi.
The role of president will not be filled at this time, a Pepsi spokesman said.
Nooyi: Indian zing behind American fizz
Success and power may be second
nature to Indra K Nooyi, named the 28th most powerful woman
globally by Forbes in 2005, but being the smartest is all that
counts for the mother of two who is set to lead the world's
second largest soft drinks maker - PepsiCo.
"Being a woman, being foreign-born, you've got to be
smarter than anyone else," Nooyi, 50, had said reacting to the
recognition of her corporate exploits by Forbes, which also
named her as the highest-ranking Indian-born woman in
corporate America.
The Madras Christian College alumnus started her career
from India, as a low-profile product manager at Johnson &
Johnson and textile firm Mettur Beardsell Ltd. After her
graduation, she did her management from Indian Institute of
Management and also picked up a masters degree in public and
private management from Yale University.
Known to often attend PepsiCo events wearing a sari,
Nooyi served as senior vice-president in-charge of strategy
and strategic marketing for Asea Brown Boveri before joining
PepsiCo in 1994.
Outgoing PepsiCo CEO Steve Reinemund aptly summed up
Nooyi's 12-year service with Pepsi: "Indra's record of
transforming PepsiCo speaks for itself, and she has been an
invaluable partner and ally throughout my time as CEO.
"She not only co-authored our vision and drafted our
strategic blueprint, she has a sharp talent for turning
insightful ideas and plans into realities and for developing
and replenishing our talent base."
The 50-year-old is credited with being instrumental in
some of the "bold risks" taken by PepsiCo, which include
acquisition of Tropicana in 1998 and starting the company's
fast-food chains in 1997.
Nooyi's biggest elevation at PepsiCo came in May 2001
when she took over as its president and Chief Financial
Officer (CFO) and was also elected to the board of directors.
She has also had a stint with Motorola, with whom she
served in the capacity of vice-president and director of
corporate strategy and planning from 1986 to 1990 after
joining the company as business development executive for its
automotive and industrial electronics group.
Before joining Motorola, she spent six years directing
international corporate strategy projects at the Boston
Consulting Group.
Nooyi has lent her expertise to the boards of numerous
companies. In addition to the PepsiCo board of directors,
Nooyi serves as a member of the board of the Federal Reserve
bank of New York, Motorola, the International Rescue Committee
and Lincoln Center for the Performing Arts.
She is also a successor fellow of Yale corporation and on
the advisory board of the Yale School of Management, the board
of trustees for the Eisenhower Fellowships and Asia Society
and member of the executive committee of the Trilateral
Commission.
Commenting on her new appointment, she said: "I am
humbled by the opportunity to lead PepsiCo, and profoundly
grateful to follow in the footsteps of Steve Reinemund, Roger
Enrico, Wayne Calloway and Don Kendall.
"Steve has steered the company to a strong and enviable
position, and he will be a continuing source of wisdom and
perspective. I am equally fortunate to have amazing partners,
not only on the board and executive team, but in the 157,000
bright, talented colleagues around the world, who deliver the
results every day and are as committed as I am to continue
capturing every growth opportunity."
Bureau Report