Pepsi cracking CEO transition code



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(AP Photo / Charles Krupa)

For once, there is good news from the meeting room. Pepsi, 29th on the S & P 500, will experience a succession / succession of CEOs very orderly.

Indra Nooyi, who has successfully led Pepsi's growth over the last 12 years, will be stepping down on October 3rd. Nooyi will be replaced by Ramon Laguarta, Director of Global Operations for Pepsi.

The board spent a year identifying a strong internal candidate. Choosing an internal candidate makes sense when the company stays on a defined strategy, unlike companies that have to deal with a huge strategic change that often requires looking outside.

In addition, Nooyi will remain Chairman of the Board until early 2019. This limited time will allow a smooth transition of knowledge and power, while preventing the growth and development of Laguarta as a new CEO. . A short rotation period and joint leadership are essential to the passage of the witness, a prolonged period of time would become detrimental and create confusion as to who is really responsible.

The CEO and the board will continue to focus on the big questions of how much to invest in the main brands: Pepsi, Gatorade, Mountain Dew compared to the overall trend of healthier emerging products: Kombucha, the hummus.

There is always the healthy tension of knowing how much future investing in the future compared to generating income and profits in the short term.

This will continue to be a delicate balancing act, as Trian (who has invested heavily in Proctor & Gamble) has long focused his attention on Pepsi.

The big question of vertically integrating bottling within the company versus short-term revenue reduction will be one of the ongoing pressures that will face the new CEO, Laguarta.

The philosophical goal of adopting ESG principles, being greener, directly engaging the consumer in new online business models and globalizing its brand portfolio for high growth brands in the markets emerging high growth makes a lot of sense for the future.

Congratulations on a smooth transition for the CEO. Few companies succeed.

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For once, there is good news from the meeting room. Pepsi, 29th on the S & P 500, will experience a succession / succession of CEOs very orderly.

Indra Nooyi, who has successfully led Pepsi's growth over the last 12 years, will be stepping down on October 3rd. Nooyi will be replaced by Ramon Laguarta, Director of Global Operations for Pepsi.

The board spent a year identifying a strong internal candidate. Choosing an internal candidate makes sense when the company stays on a defined strategy, unlike companies that have to deal with a huge strategic change that often requires looking outside.

In addition, Nooyi will remain Chairman of the Board until early 2019. This limited time will allow a smooth transition of knowledge and power, while preventing the growth and development of Laguarta as a new CEO. . A short rotation period and joint leadership are essential to the passage of the witness, a prolonged period of time would become detrimental and create confusion as to who is really responsible.

The CEO and the board will continue to focus on the big questions of how much to invest in the main brands: Pepsi, Gatorade, Mountain Dew compared to the overall trend of healthier emerging products: Kombucha, the hummus.

There is always the healthy tension of knowing how much future investing in the future compared to generating income and profits in the short term.

This will remain a delicate balancing act, as Trian (an actor currently heavily invested in Proctor & Gamble) has long since turned to Pepsi.

The big question of vertically integrating bottling within the company versus short-term revenue reduction will be one of the ongoing pressures that will face the new CEO, Laguarta.

The philosophical goal of adopting ESG principles, being greener, directly engaging the consumer in new online business models and globalizing its brand portfolio for high growth brands in the markets emerging high growth makes a lot of sense for the future.

Congratulations on a smooth transition for the CEO. Few companies succeed.