US: PepsiCo chairman retires
PepsiCo's chairman Steve Reinemund retired today (2 May). The company's CEO Indra K. Nooyi assumes the title of chairman.
Nooyi assumed her role as CEO in October 2006, and today becomes the fifth chairman and chief executive officer in PepsiCo's 42-year history, following Reinemund (2001-2006), Roger A Enrico (1996-2001), Wayne D Calloway (1986-1996) and Donald M Kendall (1971-1986). Herman W Lay served as PepsiCo's first Chairman (1965-1971), while Kendall served as CEO.
PepsiCo also said that its board of directors had approved a plan to increase cash returns to shareholders by raising both the company's targeted dividend payout rate and its share repurchase authorisation amount.
Nooyi said: "The plans reflect our continued confidence in the growth of our business and our steadfast commitment to providing strong cash returns to our shareholders."
The company increased its dividend payout target to 50% of prior year's earnings, beginning with its May dividend declaration. As a result of today's action, the company announced a 25% increase in the annual dividend, raising it to US$1.50 per share from $1.20 per share. The dividend is payable on June 29, 2007 to shareholders of record on June 8, 2007.
The board of directors also approved a higher level of share repurchases. The board authorised repurchasing up to an additional $8 billion through mid- 2010, once the current share repurchase authorisation is complete. The current $8.5 billion authorisation began in 2006 and has approximately $6 billion remaining.
The company indicated it expects share repurchases of $4.3 billion in 2007, an upward revision from its previous guidance of $3.3 billion, and annual share repurchases of $4 billion to $5 billion over the next several years.
Global bottled water consumption has continued to increase, with Asia/Australasia and North America leading the markets, according to a recent report....
PepsiAmericas has posted a lift in operating income for its third quarter, on the back of rising sales....
PepsiCo and Coca-Cola have begun a new battle in India's US$125m fruit juice market....
Portuguese brewer and soft drinks group Sumolis has moved forward in its talks to buy an 80% stake in rival Compal....
Gatorade has entered into a licensing deal with golf superstar Tiger Woods to develop "Tiger-inspired" sports performance beverages for athletes at all levels....
Weight management drinks have grown 24% to 570m litres in 2006 across Western Europe, the US and Japan....
PepsiCo has reported a lift in both operating profit and sales for its third quarter....
Reed's has beefed up its management team with the appointment of a new CFO....
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