Yesterday PepsiCo, a Fortune 500 company with an annual revenue of $32.6 bn in 2005, announced that they will appoint Ms. Indra Nooyi as the new CEO and will replace Steven Reinemund in October. This was a huge move by the the world famous softdrink maker, and, while the move was not surprising, it is still significant.
In October, Nooyi will join an elite group of women – the group that you address as “CEO” - among which some of the more notables are Meg Whitman of eBay and Anne Mulcahy of Xerox. This small set of women, now totaling 12 among Fortune 500 companies, have the responsibility of leading their respective companies forward, the success or failure of the company riding on their backs. If the company is doing well, the CEO gets praise, recognition, and often, a hefty bonus. If the company tanks, the CEO more-often-than-not gets the boot. This is a lot of responsibility, responsibility that until recently wasn’t bestowed upon women. However, in today’s modern market, women are getting bumped up the corporate ladder faster and at a greater rate than they used to. While the statistics still remain skewed (almost 50% of the working population is female while only about 10% hold corporate officer positions) despite the fact that female-run companies have been shown to outperform their male-run counterparts, people are beginning to realize that women can do this job too.
Pepsi’s appointment of Nooyi is a special one however, for she is not only the female CEO of one of the most well known brands ever, but she is also the only Indian CEO amongst the Fortune 500 companies. Which was more surprising for you, that Pepsi appointed a female, or that she was the only Indian? I would have to say the latter…
With the number of Indians that are in the corporate world in the United States today, I must say, I personally found it surprising that the future Pepsi CEO is the only one amongst the F500 that is Indian. Perhaps I am being biased in thinking that with the success Indians have seen in the US, it is only logical to assume that there are Indian CEOs, but is no one in the least bit surprised by the fact that she is the only current one?
This Madras born CEO is said to be a great fit for the company. Having formerly served as the CFO of the company, according to Reinemund, ”[he] is convinced she is more than qualified and clearly ready for her new role leading PepsiCo.” This will by no means be an easy task, and she she will have to have a running start as the company currently faces bans in India due to reports that their products contain harmful pestecides, but should she handle the responsibility well and take Pepsi to new heights it will be a great step for both women and Indians alike.
Ms. Nooyi, good luck.
Cheers,
Taps
