PepsiCo's powerful commitment to diversity, embraced and promoted by Chairman and CEO Steven S. Reinemund, will continue with a historic announcement this morning.

May 2006 Buy Now

Indra Nooyi, president and CFO of PepsiCo, will replace Reinemund as CEO Oct. 1, becoming the first female CEO, and the first CEO of color, in the company's history. The native of India also will be the first female CEO of color for a Fortune 100 company. She will be the second current woman of color to head a Fortune 500 company; the other is Andrea Jung of Avon.

Reinemund is a legendary diversity champion at PepsiCo, No. 18 on The 2006 DiversityInc Top 50 Company for Diversity list. He recently told DiversityInc: "I often refer to our diversity and inclusion as a marathon ... The challenge comes with creating an environment in which every associate—regardless of ethnicity, sexual orientation, gender or physical ability—feels valued and wants to be a part of our growth."

Amy George, PepsiCo's vice president of global diversity and inclusion, says there will "not be any weakening in our support for" diversity under Nooyi. Nooyi came to PepsiCo in 1994 and was named to her current position in 2001. She has also served on the board of directors since 2001.

"I think Indra will bring uniqueness to that role based on who she is," George says.

Nooyi's actions already demonstrate a commitment to diversity. She is the PepsiCo Executive Council sponsor for women, serving as a voice in understanding and conveying the "concerns and issues women have at PepsiCo," George says. In that role, Nooyi reports directly to Reinemund and has created an internal women's-networking group. She also is leading the development of a new company Web site where women can learn how other women have advanced their careers and can receive mentoring. The Web site is scheduled for release in the fall

Last year, Nooyi sponsored a week-long event, Celebrating Us, at the company's Purchase, N.Y., headquarters. Employees showcased their diverse cultures and promoted an inclusive environment.     

Known as a brilliant strategist and engaging speaker, Nooyi articulates PepsiCo's grasp of the global market. Last year, she delivered the commencement ceremony at Columbia Business School, urging graduates to see the connection among global economies.

Nooyi's corporate career started as a product manager at Johnson & Johnson and Mettur Beardsel in India. She came to the United States in 1978 and attended Yale University. From 1980 to 1986, she served as director of international corporate strategy for Boston Consulting Company. She moved to Motorola's automotive division in 1986 and two years later was promoted to vice president and director of Motorola's corporate strategy and planning. In 1990, she became senior vice president of corporate strategy and strategic marketing for a power and automation technology company in Switzerland. Four years later, she joined PepsiCo as its senior vice president of strategic planning.

Reinemund cited the need to spend more time with his family when announcing his retirement from PepsiCo. He will leave as chairman in May and has chartered a progressive course on diversity that has made Pepsi an annual leader among The DiversityInc Top 50 Companies for Diversity.

Reinemund told DiversityInc in 2005 that about 1 percent of the company's 8 percent growth in 2004 could be attributed to diversity-inspired products. He regularly discusses diversity at employee meetings and conferences and with Wall Street analysts.

"If you don't believe [that diversity is good for business and is also the right thing to do], it's too hard and you won't stay with it, and you won't be successful if there's no business case as well," he told DiversityInc. (See also: First Comes CEO Commitment)  

Reinemund became PepsiCo president in 1999 and CEO in 2001. Before that, he served as senior operating officer of Pizza Hut in 1984. From 2002 to 2004, PepsiCo realized steady growth under Reinemund, with net revenue growing at a compound annual rate of 8 percent and income per share increasing to 19.8 percent.

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