PepsiCo Names Spinoff CEO

PepsiCo Inc. on Monday named its 72-year-old former president to the top management job of the $10-billion fast-food restaurant company that it will spin off later this year.

Andrall Pearson, a partner at the New York leveraged-buyout company Clayton, Dubilier & Rice and president of PepsiCo from 1971 through 1984, will be chairman and chief executive of the restaurant spinoff, Pepsi said.

He will be joined by David Novak, currently president and CEO of Pizza Hut and Kentucky Fried Chicken, which, along with Taco Bell, are being spun into the largest restaurant company in terms of stores in the world. Novak, 44, will be vice chairman and president.

Pearson declined to cite his salary but said it will be “well into the seven figures.”

Pepsi’s shares rose 25 cents to close at $37.375 on the NYSE.