Change in Leadership at PepsiCo as CEO Nooyi Announces Retirement

PURCHASE, N.Y. — PepsiCo Inc. will see a change in leadership this fall when CEO Indra K. Nooyi retires on Oct. 3. She will remain chair of the company's board of directors until early next year.

The board unanimously elected President Ramon Laguarta to succeed Nooyi as CEO, effective Oct. 3. He has served as president since September.

Nooyi has 24 years' experience at PepsiCo, serving as CEO for the past 12 years. Under her leadership, the company delivered several strong results, including:

• Total shareholder return of 162 percent from Dec. 31, 2006 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; and
• Net revenue growth from $35 billion in 2006 to $63.5 billion in 2017, a compound annual growth rate of 5.5 percent.

"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," Nooyi said.

"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," she added.

Speaking on behalf of PepsiCo's board, presiding director Ian Cook said Nooyi provided outstanding leadership over the past 12 years, serving as a model both within the industry and beyond for responsible corporate stewardship in the 21st century.

"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 percent, outperforming our peers and adding a new billion-dollar brand almost every other year," Cook explained.