Nooyi, 50, has been president and chief financial officer of the maker of Pepsi soda and Frito-Lay snacks since 1994.
NEW YORK: Food and soft-drink giant PepsiCo Inc announced on Monday that it had settled upon 50-year-old Chennai-born Indra Nooyi as its next chief executive, succeeding Steve Reinemund.
A graduate of Madras Christian College and alumna of the Indian Institute of Management, Calcutta, Nooyi will become the highest-ranked woman CEO in any US corporation when she takes over the job on October 1.
Commenting on her appointment, Nooyi said in a statement, “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.”
She said, “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.”
According to industry analysts, Nooyi, who is already president and chief financial officer of PepsiCo, was a shoo-in for the job. In 2001, she was lead negotiator on the $13.8 billion acquisition of Quaker Oats Co and was rewarded with a board seat at Pepsi, giving her a crack at succeeding Reinemund someday.
In 2004, the company held on to Nooyi and Michael White, head of Pepsi’s international business, by lavishing on them multimillion-dollar restricted stock awards that they could encash only in 2009, committing them to remain with Pepsi. Some company officials told DNA that White was also in the running for the top job, but Nooyi was the “clear favourite”.
Speaking on behalf of PepsiCo’s board of directors, presiding director Robert E Allen said: “We are exceedingly fortunate to have a leader of Indra’s calibre, vision, and experience take the helm. She has been instrumental in PepsiCo’s solid direction and ongoing success and has the complete endorsement and support of the board.” Reinemund, 58, will continue to serve as a member of the board of directors until his retirement in May 2007, after more than five years as chairman and CEO. The PepsiCo veteran, who is stepping down to spend more time with his family, is supposed to have tipped the scales in Nooyi’s favour. He has praised her for driving critical cross-business initiatives to enhance operations and enable PepsiCo to meet the changing needs of consumers and retailers.
With the move, Nooyi becomes one of the most prominent people in corporate America. She has always had little trouble making the cut to Fortune magazine’s annual list of the 50 Most Powerful Women in business in the US. This year, she jumped one place up from her previous ranking to occupy the No 11 spot.
Nooyi, who is described as “vivacious, friendly, and honest to a fault” by colleagues, weathered a media storm in May 2005 for making political remarks during a speech in Columbia Business School about the US leaning on other countries. She drew an analogy of the hand and compared the US to the big middle finger which “sticks out so much”.
Other than that little brush with controversy, Nooyi is best known for her strategic thinking and sharp deal-making skills, which have led to the remaking of the company in the last decade. Nooyi has played key roles in the Tricon spin-off, the purchase of Tropicana, the public offering of the Pepsi Cola bottling group and the merger with Quaker Foods.
Before joining PepsiCo, Nooyi was senior vice-president of strategic marketing for Asea Brown Boveri, and vice-president and director of corporate strategy at Motorola.
Nooyi graduated with a degree in chemistry, physics, and maths, and then earned a master’s degree in finance and marketing from IIM-C. She also holds a master’s degree in public and private management from the Yale School of Management. She is a member of the boards of Motorola, the International Rescue Committee, and Lincoln Centre for the Performing Arts in New York City.
She and her husband Raj live with their two daughters in Greenwich, Connecticut.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}