By Mike Esterl
PepsiCo Inc. named Enderson Guimaraes, chief executive of its
European unit, to oversee global operations as the snack and
beverage giant overhauls its management bench after some high-level
departures.
The company said Monday that Mr. Guimaraes will assume the
responsibilities of President Zein Abdalla. It disclosed last month
that Mr. Abdalla, widely viewed as a potential successor to Chief
Executive Indra Nooyi, would leave PepsiCo at the end of
December.
Mr. Guimaraes isn't being given the title of president, which
Ms. Nooyi held before becoming CEO in 2006. Mr. Guimaraes, who
joined PepsiCo in 2011, will instead assume the title of Executive
Vice President, Global Categories and Operations.
That suggests there is still no clear No. 2 to Ms. Nooyi, who is
59 years old and hasn't indicated any plans to step down anytime
soon. Brian Cornell left PepsiCo this summer to become CEO at
Target Corp. John Compton, another potential successor, left
PepsiCo in 2012.
Ms. Nooyi came under fire from investors in 2011 after the
company missed profit targets and lost market share to beverage
rival Coca-Cola Co. But PepsiCo's fortunes have improved since she
introduced a restructuring program in 2012. The company raised its
profit forecast in October for the second time this year and its
share price reached a 52-week high last week.
The improving results have helped Ms. Nooyi fend off activist
shareholder Nelson Peltz, whose Trian Fund Management LP is
campaigning to split PepsiCo's beverage business from its more
profitable snacks business. In addition to its namesake cola,
PepsiCo's billion-dollar retail brands include Lay's potato chips,
Quaker oatmeal, Tropicana orange juice and Gatorade sports
drinks.
Mr. Guimaraes, who is Brazilian and in his mid-50s, will be
responsible for overseeing PepsiCo's global beverage, snacks and
nutrition groups, global procurement and corporate strategy.
Because of the company's decentralized structure, though, he won't
control a big budget.
The executive joined PepsiCo as president, global operations in
2011 from Electrolux, where he was executive vice president and
oversaw the company's major appliances business for Europe, Africa
and the Middle East. He also served as president of PepsiCo's
global nutrition group before becoming CEO of PepsiCo Europe in
2012.
PepsiCo said that Ramon Laguarta will become CEO of PepsiCo
Europe. Mr. Laguarta is currently President, Developing &
Emerging Markets, PepsiCo Europe. He joined the company in
1996.
Some company observers have questioned the strength of PepsiCo's
management bench following several recent high-profile exits. Debra
Crew, another senior executive, left PepsiCo this fall to become
president and chief commercial officer at R.J. Reynolds Tobacco
Co.
In a statement, Ms. Nooyi said PepsiCo "enjoys a deep bench of
leaders across the company." Messrs. Guimaraes and Laguarta are
"highly skilled operators" with "impressive performance track
records," she added.
Hugh Johnston, who joined PepsiCo in 1987 and became chief
financial officer in 2010, has long been viewed as a dark-horse
candidate to eventually succeed Ms. Nooyi. Some company observers
have speculated Ms. Nooyi could at some point give Mr. Johnston
added responsibilities, including possibly the title of
president.
A company spokesman declined Monday to comment on any future
management changes, including the potential naming of a companywide
president.
In addition to Ms. Nooyi and Mr. Abdalla, Mr. Compton also
briefly held the title of president before leaving PepsiCo.
Write to Mike Esterl at mike.esterl@wsj.com
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