PepsiCo, Inc. has announced that its Board of Directors has unanimously elected Ramon Laguarta, 54, to succeed Indra K. Nooyi, 62, as Chief Executive Officer. Nooyi will step down on October 3rd after 24 years with the company, the last 12 as CEO. She will remain Chairman until early 2019 to ensure a smooth and seamless transition. Laguarta was also elected to the company’s Board of Directors, effective 3rd October.
Under Nooyi’s leadership, PepsiCo has delivered strong results:
- 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%
“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.”
Nooyi continued: “Ramon Laguarta is exactly the right person to build on our success. He is a terrific executive with a long and proven track record of growing businesses. He has a deep understanding of the changing preferences of consumers and other critical trends unfolding around the world, and he has demonstrated that he knows how to navigate them successfully. Ramon has been a critical partner in running the company, and I’m confident he will take PepsiCo to new and greater heights in the years to come.”
Indra has 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.
Commenting on his appointment, Mr. Laguarta said, “I’m incredibly humbled and privileged to be appointed the next CEO of PepsiCo, and I want to thank the Board of Directors for the confidence they have placed in me with their decision,” said Laguarta. “I also want to thank Indra for her overwhelming support. She has transformed the company with her bold vision and outstanding leadership, and I feel fortunate to have her as a mentor and a friend. And of course, I want to thank all of my colleagues, as well as the customers, bottlers, partners, and investors who are part of the PepsiCo family. I look forward to working more closely with all of you in the months and years ahead, and to continue growing this special company long into the future.”
Laguarta will become the sixth CEO in PepsiCo’s 53-year history. All have been appointed from within the organization, a testament to PepsiCo’s strong bench of talent and succession planning.
Laguarta has held a number of executive and general management roles in his 22 years at PepsiCo. Since September 2017, Laguarta has served as President of PepsiCo, overseeing global operations, corporate strategy, public policy and government affairs.