FIRST CUT

INDRA NOOYI ANNOUNCED AS PEPSICO CEO

“Driving them up the wall/ Iron Woman rules them all."
A friend of Indra Nooyi once re-wrote Black Sabbath’s Iron Man only altering the lyrics that bit to honour the electric guitar-loving lady. Prophetic action, it seems now, as Nooyi, 50, has been elected by the PepsiCo Board to take over as chief executive officer. She replaces Steve Reinemund, starting October 1, 2006 who will become executive chairman.

Putting a stamp of approval on her 12-year stint with the corporation, the Pepsico Board said in a statement: "We are exceedingly fortunate to have a leader of her caliber, vision and experience to take the helm. She has been instrumental to PepsiCo's solid direction and ongoing success and has the complete endorsement and support of the board." Reinemund summed up on a conference call with investors saying that "Her record of transforming PepsiCo speaks for itself, and she has been an invaluable partner and ally throughout my time as CEO.”

Nooyi herself said on the same call that she is “very excited and very humbled by her new appointment.” She gives full credit to her colleagues, especially Reinemund and Michael D. White, PepsiCo Vice Chairman and Chairman & CEO of PepsiCo International. She has worked closely with them and describes her relationship where “they complete each other’s sentences.”

Nooyi's current responsibilities will be divided between two PepsiCo veterans: Richard Goodman, 57, currently CFO of PepsiCo International, will assume the position of CFO for the corporation. Hugh F. Johnston, 44, currently Senior Vice President, Transformation, has been promoted to the newly created position of Executive Vice President, Operations with added responsibilities of global procurement and IT. Both will report to her.
Known to be a determined achiever to anyone who has interacted with her, Nooyi helped engineer over $30 billion worth of deals in the past few years. She has played key roles in the Tricon spin-off, the purchase of Tropicana, the public offering of Pepsi Cola bottling group and the merger with Quaker Foods. In 1997, she prodded Roger Enrico, then CEO, to spin off PepsiCo's fast-food business. Nooyi was ranked #4 on Fortune Magazine's list of "50 Most Powerful Women in Business" in 2005.
This may have been expected but as Nooyi has said often in public forums "It is not easy up there. " Proud of her Indian origin- she is known to wear the traditional sari for several formal functions- Nooyi stands tall as an example for people who imagine they belong to disadvantaged groups.

(This article appeared on the front page of Hindustan Times in Sept `06. It contained the first quotes grabbed from an investors' teleconference by Ms Indra Nooyi after being announced as CEO, PepsiCo)