PepsiCo CEO Nooyi to step down, Ramon Laguarta to succeed

Roman Schwartz
August 6, 2018

Nooyi, who was the firm's fifth chief executive in the group's 41-year history, will be succeeded by PepsiCo executive Ramon Laguarta. "Growing up in India, I never imagined I'd have the opportunity to lead such an extraordinary company", Nooyi said in a statement Monday. Though she will step down as CEO on October 3, she will remain Chairman until early 2019 to aid an easy transition.

He was elevated to president in September of previous year and was widely expected to succeed Nooyi, though at the time of his appointment Nooyi said she would remain CEO "for the foreseeable future". "Laguarta was also elected to the company's Board of Directors, effective October 3rd", the statement also said.

A file photo of Indra Nooyi.

"PepsiCo today is in a strong position for continued growth with its brightest days still ahead", she added.

Under Nooyi's leadership, PepsiCo witnessed a net revenue growth from $35 billion in 2006 to $63.5 billion in 2017 and a compound annual growth rate of 5.5%.

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Meanwhile Laguarta, who has been with the company for 22 years, has been the president since September overseeing global operations, corporate strategy, public policy and government affairs at PepsiCo.

"As CEO, she grew revenue more than 80%, outperforming our peers and adding a new billion-dollar brand nearly every other year".

"Ramon Laguarta is exactly the right person to build on our success".

Nooyi joined PepsiCo in 1994 and became the Chief Financial Officer in 2001. Dividends per share almost tripled from $1.16 in 2006 to $3.17 in 2017 and a compound annual growth rate of almost 10%, according to a PepsiCo statement.

"Her leadership and vision propelled our performance, transformed our company and embedded sustainability into everything we do", PepsiCo said.

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