Ramon Laguarta to replace Ms Nooyi, who will continue as chairwoman until next year

WASHINGTON(TIP): PepsiCo said on Monday, August 6, that Indra Nooyi would step down as chief executive after 12 years at the helm and named president Ramon Laguarta as her successor.

Mr Laguarta will take over from Ms Nooyi on October 3rd and will also join the board, the company said in a statement.

Ms Nooyi (62), who has been with the company for 24 years, will continue as chairwoman of the board until early 2019.

Ivanka Trump who looks upon Indra Nooyi as her inspiration and mentor commented: “The great Indra Nooyi is stepping down as PepsiCo CEO, after 12 years. Indra, you are a mentor + inspiration to so many, myself included,”

Indra Nooyi has been a darling of Indian Americans who have always taken pride in her as a shining example of the achievements of women of Indian origin abroad.

Commenting on her stepping down as CEO of one of the largest companies of the world, Dr. VK Raju, eminent Indian American ophthalmologist who hails from Andhra Pradesh, said, “Indra Nooyi has been a towering personality in the corporate world of America and is responsible for the growth of PEPSICO”.

Ms. Nooyi grew up in Chennai, India, where during food shortages in the 1960s her middle-class family stood in line for rice rations studded with stones. When Indra and her sister were young, their mother challenged them at the dinner table each night to give speeches about what they would do if they were prime minister or another world leader. After the speeches, their mother would vote.

Ms. Nooyi came to the U.S. in 1978 on a scholarship to the Yale School of Management and worked at several companies before joining PepsiCo in 1994 as head of strategy. She was chief financial officer and president before she was named chief executive, succeeding Steve Reinemund.

After becoming CEO in 2006, Ms. Nooyi said she wanted to make PepsiCo “a defining corporation of the 21st century.” “Nobody’s going to remember you for delivering earnings to stockholders; they will remember you for the lasting impact you made on society,’’ she said in a 2009 speech.

The company’s shares have gained 78 per cent since Ms Nooyi took the top job in 2006.

Mr Laguarta, a 22-year veteran of PepsiCo, oversaw global operations, corporate strategy, public policy and government affairs in his role as president.

He also served as head of the company’s Europe Sub-Saharan Africa division before becoming president.