PepsiCo Board Frustrated Over CEO Nooyi, New York Post Says
Some members of PepsiCo Inc.’s board are frustrated at the lack of a plan for a successor to Chief Executive Officer Indra Nooyi and may address the issue over the next six months, the New York Post reported, citing an unidentified person close to the company.
Pressure to oust Nooyi “will be hard to ignore” if the New York-based company’s stock doesn’t improve, the newspaper cited one person as saying. Nooyi’s initiatives as CEO of the world’s largest snack-food maker, including a push into healthier foods, haven’t shown big results, the newspaper cited sources as saying.
Some board members are also frustrated that Nooyi’s only potential successor, Eric Foss, the head of the company’s bottling business, will leave next month, according to the report. Nooyi took over as CEO in 2006 and has sought to win back consumers who want healthier choices.
Tamara Coxall, a U.K.-based spokeswoman for PepsiCo, couldn’t be immediately reached for comment on the report.
PepsiCo last month reported a 4.1 percent increase in third-quarter profit to $2 billion.
The shares rose 0.8 percent yesterday to $62.50 and have dropped 4.3 percent this year. They traded at the equivalent of $62.57 at 11:43 a.m. in Frankfurt trading.
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