Indra Nooyi Steps Down From Pepsi; Ramon Laguarta Named CEO
CEO Indra Nooyi is retiring from PepsiCo, effective Oct. 3, and Ramon Laguarta has been named the new CEO. Nooyi, who joined Pepsi 24 years ago and became CEO 12 years ago, will remain chairman until early 2019 to ensure a smooth transition.
“Leading PepsiCo has truly been the honor of my lifetime, and I'm incredibly proud of all we have done over the past 12 years to advance the interests not only of shareholders, but all our stakeholders in the communities we serve,” said Nooyi. “Growing up in India, I never imagined I'd have the opportunity to lead such an extraordinary company. Guided by our philosophy of Performance with Purpose —delivering sustained performance while making more nutritious products, limiting our environmental footprint and lifting up all the communities we serve — we've made a more meaningful impact in people's lives than I ever dreamed possible. PepsiCo today is in a strong position for continued growth, with its brightest days still ahead.”
Under Nooyi's leadership, Purchase, N.Y.-based PepsiCo has delivered strong results:
- Since Dec. 31, 2006, total shareholder return of 162 percent through Dec. 31, 2017
- Total cash returned to shareholders through dividends and share repurchases of $79.4 billion since the beginning of 2006 through the end of 2017
- Dividends per share nearly tripled from $1.16 in 2006 to $3.17 in 2017, a compound annual growth rate of nearly 10 percent
- Net revenue growth from $35 billion in 2006 to $63.5 billion in 2017, a compound annual growth rate of 5.5 percent
Speaking on behalf of PepsiCo's board of directors, Presiding Director Ian Cook said: “As chairman and CEO, Indra has provided outstanding leadership over the past 12 years, serving as a model both within our industry and beyond for responsible corporate stewardship in the 21st century. … Thanks to her leadership, PepsiCo is well positioned for ongoing success as Ramon assumes this new role. He is a seasoned leader with deep experience in international markets, and the board is confident that he is the right person to usher in this next chapter of growth for PepsiCo.”
Laguarta, who has been with Pepsi for 22 years, will become the sixth CEO in PepsiCo’s 53-year history. Since September 2017, he has been president of PepsiCo, overseeing global operations, corporate strategy, public policy and government affairs. Previously, Laguarta was CEO, Europe Sub-Saharan Africa, one of PepsiCo's most complex businesses, with operations spanning three continents and comprising developed, developing and emerging markets. Prior to that, he was president, PepsiCo Eastern Europe region and held a variety of sales, marketing and other commercial roles across Europe.
“Ramon is a strong and proven executive with an outstanding track record growing organically and by acquisition some of PepsiCo's largest and most important international businesses,” said Daniel Vasella, chairman of the board's nominating and corporate governance committee. “He keenly understands the evolving needs of consumers and customers, and the trends affecting our business in markets around the world. He will bring the depth of experience and innovative thinking that has powered his previous achievements as he is inheriting a well-positioned company poised to continue delivering top-tier performance.”