In a major top management rejig, global food and beverage giant PepsiCo may announce some major changes to its senior positions and line up at least three potential successors to its India-born chief Indra Nooyi, a media report has said.
PepsiCo plans to name former senior Wal-Mart Stores Inc executive Mr Brian Cornell to head the company’s American food division, while long-time company executive Mr John Compton may be appointed to the position of President, the Wall Street Journal reported, citing unnamed sources.
The report said that these appointments could place Mr Cornell and Mr Compton, along with PepsiCo’s European operations chief Zein Abdalla, as the top three internal candidates to succeed Ms Nooyi, currently Chairman and CEO of the global giant.
While it is not clear how and when such a succession plan could pan out, the report said that Ms Nooyi has faced investor dissatisfaction in the wake of rival Coca-Cola gaining market share from PepsiCo.
Ms Nooyi has also been unable to boost the company’s stock since she became CEO in 2006, it said, while adding that the voices have also come up for a split-up of PepsiCo, which has $22 billion retail brands, including Tropicana, Gatorade and its namesake cola.
As per the report, Mr Cornell, who worked at PepsiCo for six years before leaving in 2004, would assume Mr Compton’s current post as head of PepsiCo’s Americas—wide food division.
Last year the unit generated roughly a third of PepsiCo’s revenue, or $23 billion, and half its operating profit, or $5.5 billion. The unit includes brands like Lay’s potato chips, Doritos tortilla chips and Quaker oatmeal.
Mr Compton could be given charge of integrating the group’s far-flung global operations and brands more closely.
As per the report, 56-year-old Nooyi, whose name has reportedly come up as a potential candidates for the next World Bank chief, has recently said that she “loves” her job, and there are no immediate plans for her to step down.
The company has also ruled out any split—up for now and its board has said it fully backed the top management and its business strategy.
Ms Nooyi reportedly said at an investor meeting last month that PepsiCo had “outstanding leaders” for each of its businesses and they “are all CEO capable“.
She is also said to have taken various initiatives to boost the company’s performance and the company expects to return to “high-single-digit” earnings growth next year.