Pressure on Pepsi (PEP) Grows; Management Shift Could Start in February

January 27, 2012 8:25 AM EST Send to a Friend
PepsiCo (NYSE: PEP) is looking to position itself better for the succession of current CEO Indra Nooyi, and moves could be coming very soon.

According to the NY Post Friday, on February 9th Pepsi will release results of a months-long review of company ops, giving more responsibilities to at least two executives in the process. Favorites to assume the role according to the Post included global snacks business head John Compton, EMEA division lead Saad Abdul-Latif, and Europe President Zein Abdalla.

Not named were Chief Scientific Officer Mehmood Khan, M.D., and Chief Communications Officer Julie Hamp, among many others.

Pepsi has been under fire for at least four years following the appointment of Nooyi as CEO in 2007. Shares, which closed at about $66.50 Thursday, are little changed from $65.20 when Nooyi took over.

Review of operations by Pepsi comes as investors patience is nearly at an impasse; Pepsi's branded cola has been losing market share to rival Coca-Cola (NYSE: KO) over the past year, and Pepsi's focus on its snacks business has also been lofty.

The Post said Nooyi herself likes Europe President Zein, but is also afraid of losing a key executive like Compton. Investors will have to wait until early February to see what initial moves will be made for the top-spot of one of the world's best food and beverage companies.


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