More Shakeups Coming At Pepsi?
Rumors are rampant at PepsiCo. On July 19, Pepsi announced flat earnings for the second quarter--and the resignation of John Cranor III, CEO of beleaguered KFC. Cranor is succeeded by David Novak, a former executive vice-president at the company's flagship Pepsi-Cola North America Div. In a related move, Brenda Barnes was promoted to chief operating officer at Pepsi-Cola. Barnes's promotion heightens speculation that more changes are coming. Headhunters say that PepsiCo CEO Wayne Calloway, who is recovering from prostate cancer, is looking for an executive from outside the company to succeed him. But Andrall E. Pearson, formerly president of Pepsi and now a Pepsi director, says there is no search under way. "I can understand how that kind of a rumor could get going, but the board is not putting pressure on [Calloway] to find a successor," says Pearson. "They've had one bad quarter, so just relax."