PepsiCo CEO Nooyi to Step Down Effective Oct. 3

Indra Nooyi will step down as chief executive of PepsiCo (PEP) on Oct. 3 and will be replaced by Ramon Laguarta, the company said on Monday.

Nooyi will step down on Oct. 3 after 24 years with Pepsi, including the past 12 as chief executive. She will retain her role as chairman until early 2019 to ensure a “smooth and seamless transition.” Laguarta will join the board on Oct. 3.

Pepsi grew under Nooyi’s leadership as net revenue grew from $35 billion in 2006 to more than $63 billion in 2017, a compound annual growth rate of 5.5%. Shareholders have seen a return of 162% since the end of 2006, and share repurchases have totaled $79.4 billion in the past 12 years, the company said.

Nooyi, 62, said serving as CEO of Pepsi was the “honor of my lifetime” and that she’s “incredibly proud” of what the company did during her tenure.

Ian Cook, the director of the board, said Nooyi was a role model and along with delivering strong results and shareholder value was a pioneer in the industry.

“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,” he said.

Laguarta will become the sixth CEO in Pepsi’s 53-year history, all of whom have been appointed from within the organization. He has been with Pepsi for 22 years and has held a number of executive and general management roles, the company said.

Since September 2017, Laguarta has served as president of Pepsi, overseeing global operations, corporate strategy, public policy and government affairs. He previously was CEO of Europe Sub-Saharan Africa, and prior to that he was president of PepsiCo Eastern Europe region. Laguarta also served in a variety of sales, marketing and other commercial roles across Europe.

The rest of Pepsi’s senior leadership team will remain unchanged, the company said.