8-KLeadership ChangesCorporate ChangesExhibits & Filings

PEPSICO INC 8-K Report, Executive Changes (Aug 15, 2006)

Filed August 15, 2006For Securities:PEP

Summary

This SEC Form 8-K filing by PepsiCo, Inc. (PEP) on August 15, 2006, primarily announces significant leadership changes. Steven S. Reinemund, the current Chairman and CEO, will retire in May 2007, transitioning to an Executive Chairman role from October 2006 until his retirement. Indra K. Nooyi, currently President and CFO, will succeed Mr. Reinemund as Chief Executive Officer effective October 1, 2006. This transition marks a crucial moment for the company's strategic direction, with Ms. Nooyi, a long-time executive, taking the helm. Accompanying these leadership changes are amendments to PepsiCo's By-Laws, effective October 1, 2006. These amendments formalize the separation of the Chairman and CEO roles, create the position of Executive Chairman, and clarify the powers and duties of the CEO and the Board of Directors. The filing also details the division of Ms. Nooyi's current responsibilities between two other seasoned PepsiCo executives, Richard Goodman (CFO) and Hugh Johnston (Executive Vice President, Operations), both reporting to Ms. Nooyi.

Key Highlights

  • 1Steven S. Reinemund, Chairman and CEO, to retire in May 2007, after serving as CEO since May 2001.
  • 2Indra K. Nooyi, currently President and CFO, appointed as Chief Executive Officer, effective October 1, 2006.
  • 3Steven S. Reinemund will transition to Executive Chairman from October 1, 2006, until his retirement.
  • 4PepsiCo's By-Laws amended to formally separate Chairman and CEO roles and create an Executive Chairman position.
  • 5Richard Goodman appointed Chief Financial Officer; Hugh Johnston appointed Executive Vice President, Operations.
  • 6These appointments and by-law changes are effective October 1, 2006, signifying a planned leadership transition.
  • 7The filing signals a strategic succession plan, with a focus on internal talent development.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce significant leadership changes at PepsiCo, including the upcoming retirement of the Chairman and CEO, Steven S. Reinemund, and the appointment of Indra K. Nooyi as the new CEO. It also details amendments to the company's By-Laws to reflect these changes.

Indra K. Nooyi, who currently serves as President and Chief Financial Officer, will become the Chief Executive Officer of PepsiCo, effective October 1, 2006. Mr. Reinemund will transition to an Executive Chairman role until his retirement in May 2007.

The By-Laws have been amended to allow for the separation of the Chairman of the Board and Chief Executive Officer positions, create the role of Executive Chairman, and clarify the CEO's responsibilities in overseeing the company's business and affairs. These changes are effective October 1, 2006.

Effective October 1, 2006, Ms. Nooyi's current responsibilities will be divided between two PepsiCo executives: Richard Goodman will become Chief Financial Officer, and Hugh Johnston will be promoted to Executive Vice President, Operations. Both will report to Ms. Nooyi.