PepsiCo (PEP) Welcomes Johnson & Johnson's Joaquin Duato to Board of Directors

Key Highlights

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Johnson & Johnson’s Chairman and CEO Joaquin Duato has been appointed to PepsiCo’s Board of Directors as an independent member, starting December 1, 2026.
The 64-year-old executive brings more than three decades of experience from J&J, where he has led as CEO since 2022 and Chairman since 2023.
Upon appointment, Duato will serve on the company’s Audit Committee.
Compensation includes an initial 1,000 share grant and a prorated phantom stock equity allocation.
His first $60,000 semi-annual cash retainer payment is scheduled for June 2027.

On September 17, 2026, PepsiCo revealed its decision to appoint Joaquin Duato, the current Chairman and Chief Executive Officer of Johnson & Johnson, to its Board of Directors as an independent member.

PepsiCo, Inc., PEP

The appointment becomes official on December 1, 2026. At the time of this announcement, PEP stock experienced a 2.77% decline.

The 64-year-old Duato has been with Johnson & Johnson since 1989, accumulating over 30 years of leadership experience in various senior capacities. He assumed the CEO position in 2022 before being elevated to Chairman in 2023.

Before his current role, Duato served as Worldwide Chairman of J&J’s Pharmaceuticals division between 2011 and 2018, followed by his tenure as Vice Chairman of the Executive Committee from 2018 through 2021.

Ramon Laguarta, PepsiCo’s Chairman and CEO, highlighted Duato’s extensive achievements at Johnson & Johnson as the primary factor behind this decision. “During his more than three decades at Johnson & Johnson, he has played a key role in driving strategic transformation, portfolio optimization and innovation at the company,” Laguarta said.

According to Robert C. Pohlad, who chairs PepsiCo’s Nominating and Corporate Governance Committee, Duato’s expertise in managing a major international corporation operating in highly regulated and dynamic markets makes him an invaluable addition.

Compensation Structure

Duato’s compensation package follows PepsiCo’s established framework for non-employee directors.

This arrangement includes an upfront allocation of 1,000 shares of common stock, along with a prorated award in phantom stock units based on the stock’s closing price on his December 1, 2026 start date.

Additionally, he will earn an annual cash retainer, with his initial semi-annual installment of $60,000 coming due in June 2027.

From the start of his tenure, Duato will participate as a member of PepsiCo’s Audit Committee.

Company Financial Overview

In 2025, PepsiCo recorded net revenue approaching $94 billion. The company’s extensive brand lineup features household names such as Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream.

The beverage and snack giant currently maintains a market capitalization of $184.9 billion.

The latest analyst consensus on PEP shares is rated as a Hold, with an established price target of $152.00.

Daily trading volume for PepsiCo stock averages approximately 8.26 million shares.

The shares are presently positioned below major long-term moving averages, though the stock offers an attractive dividend yield near 4% and trades at a price-to-earnings multiple of approximately 22x.

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