PepsiCo CEO - And Greenwich Resident - To Step Down

GREENWICH, CT — Indra Nooyi, 62, Greenwich resident and CEO of PepsiCo for the last dozen years, is stepping down as chief executive on Oct. 3 and will be replaced by PepsiCo's President Ramon Laguarta, the company announced Monday.

Nooyi has been with the company for 24 years and will remain PepsiCo's Chairman into early 2019. During her tenure as CEO, Nooyi has been one of the most recognizable chief executives in the United States and routinely considered one of the most powerful.

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"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 in a statement. "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."

Among the fiscal highlights of her tenure include:

• Since December 31, 2006, total shareholder return of 162% through December 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%
• Net revenue growth from $35 billion in 2006 to $63.5 billion in 2017, a compound annual growth rate of 5.5%

"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," said presiding director Ian Cook in a statement, speaking on behalf of the Board of Directors.

He continued, "She has delivered strong and consistent financial performance, managing with an eye toward not only the short-run, but the long-run as well. As CEO, she grew revenue more than 80%, outperforming our peers and adding a new billion-dollar brand almost every other year. And shareholders have benefited: $1,000 invested in PepsiCo in 2006 is worth more than two-and-a-half times that amount today.

"At the same time, Indra has invested for the future, leading the way on corporate sustainability and responsibility, and embedding a sense of purpose in everything the company does. As one of the first Fortune 100 CEOs to embed sustainability targets into business operations, Indra was a pioneer, paving the way for a new generation of business leaders who seek to 'do well by doing good.' Under her leadership, PepsiCo grew its portfolio of Good for You and Better for You options from about 38% of revenue in 2006 to roughly 50% in 2017, almost tripled its investments in research and development to expand its more nutritious offerings and minimize its environmental impact, and achieved global recognition for the company's work in communities around the world.

"Indra has also, selflessly, served as a mentor for associates up and down the organization, building close relationships with leaders in every one of PepsiCo's key markets, championing diversity and adhering to the highest standards of corporate ethics, earning PepsiCo a place on Ethisphere's list of the World's Most Ethical Companies every year since the list was established 12 years ago.

"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, 54, will become the 53-year-old company's sixth CEO. He has served as president of the Westchester-based beverage giant since 2017.

Click here to read PepsiCo's entire release.

Photo: Indra Nooyi. Photo credit: PepsiCo