PepsiCo (NYSE:PEP) has satiated consumers' bellies for more than a century. But, recently, the company has left shareholders craving more. With increased competition and loss of market share, many investors wonder if this global snack food and beverage giant is simply fizzling out. Are more bland results ahead for PepsiCo?
Below is an excerpt from our brand-new premium research report, which highlights PepsiCo's leadership. It's just a taste of one section, but we hope you find it useful.
Since October 2006, Indra Nooyi has presided as CEO, a role to which she brings a great deal of company experience. For 18 years, she rose through the ranks at PepsiCo, holding various leadership roles in strategic planning and corporate strategy. Nooyi has navigated the company amid a volatile global macroeconomic backdrop. In her tenure as CEO, she has commanded increased investments in emerging markets, overseen bottler acquisitions, and returned 30% to shareholders.
In 2011, Nooyi received approximately $17 million in total compensation, representing 0.03% of the company's gross revenues that year. By comparison, this is in line with what Coca-Cola (NYSE:KO), Dr Pepper Snapple (NYSE:DPS), and Diageo (NYSE:DEO) CEOs received -- nearly 0.06%, 0.02%, and 0.02% of their companies' respective gross revenues that same year. Nooyi's performance incentives are tied to the company's growth in revenues, operating profit, earnings per share, cash flow, and return on invested capital. In 2011, revenues grew 15%, and operating profit also expanded. From 2010 to 2011, Nooyi's total annual compensation rose nearly 6%. During this time, shareholders saw a 4% total return.
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Fool contributor Nicole Seghetti owns shares of PepsiCo. The Motley Fool owns shares of PepsiCo. Motley Fool newsletter services recommend Diageo plc (ADR), The Coca-Cola Company, and PepsiCo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.