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PepsiCo’s Indra K. Nooyi steps down as CEO

PepsiCo’s leadership team is undergoing a major change.

The Purchase, N.Y.-based company announced that after 12 years, Indra K. Nooyi would be stepping down from her role as chief executive officer.

Nooyi has worked with the company for 24 years and will remain a chairman until early 2019.

Throughout her tenure, PepsiCo has generated a net revenue growth from $53 billion in 2006 to $3.17 in 2017, and has dividends per share grow from $1.16 in 2006 to having a compound annual growth rate of nearly 10%, the company said.

"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."

Ramon Laguarta was unanimously elected by the board of directors to succeed Nooyi after she steps down on Oct. 3.

"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," Laguarta said. "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 company’s sixth chief executive officer in its 53-year history and has been with the company for 22 years. He most recently served as the president of PepsiCo, and before that was the chief executive officer of the Europe Sub-Saharan Africa division.

Prior to joining PepsiCo, Laguarta held a number of international roles for Chupa Chups.

"Ramon Laguarta's unanimous appointment follows a systematic and thorough succession process by the Board of Directors. Laguarta equally represents continuity and the necessary agility for PepsiCo," Daniel Vasella, chairman of PepsiCo's board nominating and corporate governance committee, said. "Ramon is a strong and proven executive with an outstanding track record growing organically and by acquisition some of PepsiCo's largest and most important international businesses. He keenly understands the evolving needs of consumers and customers and the trends affecting our business in markets around the world. He will bring the depth of experience and innovative thinking that has powered his previous achievements as he is inheriting a well-positioned company poised to continue delivering top-tier performance. Indra has been a visionary leader who transformed the corporation and led it to unprecedented success. Her leadership skills, strategic acumen, dedication and integrity have been critical to the sustained success of the corporation and the development of top talent."
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