Key Highlights:
- PepsiCo has appointed Walmart finance executive Steve Schmitt as its new CFO, effective from Nov. 10.
- Schmitt, currently the CFO for Walmart U.S., will succeed Jamie Caulfield, PepsiCo’s CFO, who will retire next year after a distinguished 30-year career with the company.
- PepsiCo’s chairman and CEO, Ramon Laguarta, highlighted Schmitt’s expertise in supply chains, retail dynamics, and operational excellence, stating that his appointment will drive growth and shareholder value.
Insightful Analysis:
Amid announcing the leadership change, PepsiCo also disclosed a strong quarterly earnings report, surpassing expectations. The company reported $23.94 billion in revenue for the third quarter, a 2.6% increase year-over-year.
Despite a 3% volume decline, organic revenue rose by 1.3% due to a 4% price hike, particularly in North America. Analysts anticipate a rebound in volumes as PepsiCo focuses on innovation and customer engagement strategies.
As Schmitt assumes his new role, he is expected to leverage his retail and cost management skills to enhance PepsiCo’s performance, aligning with the company’s growth objectives.
Schmitt, aged 52, will receive a competitive salary package, including a sign-on bonus, reflecting his valuable expertise gained from his tenure at Walmart and Yum! Brands.
Caulfield will support the transition until May 2026 after stepping down as CFO on Nov. 10, ensuring a smooth handover process, as per the company’s statement.