Nooyi to succeed Reinemund as PepsiCo chairman
February 05, 2007
by Eric Schroeder
PURCHASE, N.Y. — The board of directors of PepsiCo, Inc. on Monday elected Indra K. Nooyi as chairman of the board, effective when executive chairman Steven S Reinemund retires on May 2.
Ms. Nooyi, 51, is currently chief executive officer of PepsiCo, a role she has held since Oct. 1, 2006. She becomes the fifth chairman and c.e.o. in PepsiCo’s 42-year history, following Mr. Reinemund (2001-2006), Roger A. Enrico (1996-2001), Wayne D. Calloway (1986-1996) and Donald M. Kendall (1971-1986.) Herman W. Lay was PepsiCo’s first chairman (1965-1971), while Mr. Kendall was c.e.o.
"I’m incredibly honored by the board’s confidence, and extraordinarily fortunate to follow in the footsteps of Steve Reinemund and all my illustrious predecessors," Ms. Nooyi said. "PepsiCo is on a sound strategic course with solid momentum thanks to Steve’s leadership, and along with every PepsiCo associate, I’m looking forward to building on the lasting legacy created by him, Roger, Wayne, Don and Herman."
Mrs. Nooyi joined PepsiCo in 1994 and directed worldwide strategy for more than a decade. She was the primary architect of PepsiCo’s restructuring and transformation, including the merger with Quaker Oats and the acquisition of Tropicana, which added some of the world’s strongest health & wellness brands to PepsiCo’s portfolio. She also led the divestiture of PepsiCo’s restaurants into the successful YUM! Brands, Inc., and the spin-off and public offering of company-owned bottling operations into anchor bottler Pepsi Bottling Group (PBG.) Prior to being elected c.e.o. last year, Ms. Nooyi was president and chief financial officer. She was elected to PepsiCo’s board of directors in 2001.
A 23-year PepsiCo veteran, Mr. Reinemund has led the corporation since 2001. From 2001 to 2005, PepsiCo’s revenues increased by more than $9 billion, net income increased by 70%, earnings per share increased by 80%, its annual dividend doubled and the company’s market capitalization surpassed $100 billion. During Mr. Reinemund’s PepsiCo tenure, he also was the corporation’s president and chief operating officer, as well as chairman and c.e.o. of its Frito-Lay division. He started his PepsiCo career in 1984 at the company’s former Pizza Hut division, where he also was c.e.o.