Quick Summary
- 1Ramón Laguarta, the Spanish executive leading PepsiCo since 2018, emphasizes that cost reduction is a necessary condition for the company's growth.
- 2Under his leadership, the company has undergone significant restructuring, including the closure of three factories in the United States and the elimination of 5,000 jobs.
- 3This move is part of a strategy to boost profitability and group growth, following an agreement with the activist fund Elliott Management.
- 4Laguarta is recognized as one of the most influential Spanish executives in the US business landscape.
Quick Summary
Ramón Laguarta, the Spanish executive serving as CEO of PepsiCo, has stated that reducing costs is a fundamental requirement for the company to continue expanding. Since taking the helm in 2018, Laguarta has guided the beverage and snack giant through a significant restructuring phase. This strategy was developed in collaboration with the activist investment firm Elliott Management and aims to enhance the group's growth and profitability.
The operational changes have been substantial. PepsiCo has closed three manufacturing facilities in the United States and reduced its workforce by 5,000 employees. Despite these measures, the company maintains a massive global presence with a market capitalization surpassing $190 billion. Laguarta, who joined the company in 1996 after working at Chupa Chups, is known for his reserved nature and preference for keeping the focus on the business rather than his personal profile.
Executive Profile and Leadership Style
Ramón Laguarta is widely regarded as one of the most influential Spanish executives in the United States corporate sector. He currently leads PepsiCo, a company ranked among the top 100 globally by market value. The firm's valuation stands at over 190,000 million dollars, which is equivalent to more than 163,000 million euros at current exchange rates.
The company's brand portfolio includes Pepsi, which Interbrand ranks as the 38th most valuable brand in the world. Laguarta, born in Barcelona in 1963, serves as both President and CEO. He is characterized as a discreet executive who avoids the spotlight. In addressing his media presence, Laguarta has stated that his goal is not for the public to speak about him, but rather about the company, clarifying that he does not consider himself a star.
"La reducción de costes es una condición necesaria para que PepsiCo crezca"— Ramón Laguarta, CEO of PepsiCo
Compensation and Economic Philosophy
In 2024, Laguarta was identified as the highest-paid Spanish executive in the world. His total compensation amounted to 28.8 million dollars, or approximately 24.7 million euros. This figure places his earnings significantly higher than those of CEOs leading major companies listed on the Spanish stock exchange. His tenure at PepsiCo began in 1996, and he is married with three children.
When questioned regarding the justification for high executive salaries, particularly in the context of wage inequality debates in Spain, Laguarta focused on the role of the CEO. He asserts that the primary responsibility of chief executive officers is to create employment. Specifically, he emphasizes the creation of quality jobs that offer salaries commensurate with the value employees add to the company. Furthermore, he highlights the importance of creating opportunities for staff to develop and improve their quality of life, noting that his daily dedication is to build a motivated and satisfied organization.
Strategic Restructuring and Growth
The path to growth at PepsiCo involves rigorous financial discipline. Laguarta has articulated that cost reduction is not merely a choice but a "condition necessary" for the company's expansion. This philosophy drove the recent agreement with Elliott Management, an activist investor. The collaboration was designed to implement measures that would stimulate growth and ensure long-term profitability for the group.
Operational execution of this strategy has been swift and decisive. The company has taken concrete steps to streamline its operations, specifically:
- Closing three factories located in the United States
- Implementing a workforce reduction totaling 5,000 positions
These actions reflect a broader corporate pivot toward efficiency and leaner operations. By adjusting its physical footprint and staffing levels, PepsiCo aims to maintain its competitive edge in the global market while satisfying investor expectations for returns.
"El objetivo no es que se hable de mí, sino de la compañía. No soy la estrella"— Ramón Laguarta, CEO of PepsiCo
"La responsabilidad principal de los consejeros delegados es crear empleo. Empleos de calidad con los que la gente pueda tener salarios acordes con el valor que añaden a la compañía"— Ramón Laguarta, CEO of PepsiCo
Frequently Asked Questions
PepsiCo has closed three factories in the United States and reduced its workforce by 5,000 employees as part of a strategy to boost growth and profitability.
Ramón Laguarta, a Spanish executive born in Barcelona, has been leading PepsiCo since 2018.
He believes the main responsibility of CEOs is to create quality jobs and opportunities for people to develop and improve their quality of life.
