Departing Rodkin Says He Wants to Be CEO of Another Company.
Suggests His Age a Factor at PepsiCo.
PepsiCo Flattens Management Structure.
Hudson and Compton Now Report to Reinemund.

Gary Rodkin, who is leaving PepsiCo, says he wants to find job as CEO and doesn't think that was possible at PepsiCo. As he departs, company puts heads of several businesses that Rodkin ran directly under chairman/CEO Steve Reinemund and eliminates Rodkin's position; moves flatten management structure. Headhunters say Rodkin will be courted by companies and private equity firms.

Perspective. Based on talks with Rodkin and other sources, consensus is that, though Rodkin is talented executive, his age proximity to Reinemund meant he'd never be CEO of PepsiCo. Reinemund is 56; Rodkin 52. Rodkin wants a CEO job, and PepsiCo wants to move forward with its long-term succession planning. With Rodkin leaving, Reinemund will directly oversee: Pepsi North America (PCNA)chief Dawn Hudson, 47; and new Gatorade/Tropicana/Quaker snacks chief John Compton, 43. Also: company president Indra Nooyi; PepsiCo international head Mike White; and Frito North America head Irene Rosenfeld who recently joined PepsiCo from Kraft.

Details. Rodkin was head of unit called PepsiCo Beverages/Foods North America, which included: PCNA; Gatorade; Tropicana; Quaker snacks. He was reporting to Reinemund. New structure. Rodkin's departure effectively eliminates PepsiCo Beverage/Foods. Now, Hudson/PCNA will report directly to Reinemund, as will new unit -- Quaker Foods/ Tropicana/Gatorade ("QTG") -- run by Compton. He was previously vice chairman of Frito North America and president salty snacks. PepsiCo says Rodkin stays through June "to ensure smooth transition."

Flexibility for Rodkin; headhunter: 'great guy.' Source says, though PepsiCo often uses "broad, one-year non-compete agreements (with departing executives)," Rodkin "may have more flexibility, though the final details have not been worked out." Executive recruiting expert: "Gary is a great guy, he's on the top of our list." But adds "major CEO jobs are few and far between. He could end up running a moderate-sized company or in private equity." Other headhunter: "His prospects are excellent. He's a terrific candidate for CEO of a food product business."

Interview with Rodkin. BD asks Rodkin: What do you want to do next? Rodkin: "I have a real desire to run something as the #1 guy. I want to put my stamp on an organization. I want to be able to drive the culture, the values, the principles, the strategy. While I could certainly do a lot of that here in this great company in this great job, I'm still part of a larger organization. I've been president of operating divisions since 1988. That's a long time. I feel I've got the skills and experience to venture out and be that one guy. I'd like to be the CEO or chairman of a either a public company or some other kind of venture. But the important thing is that I really want to run something."

Proudest PepsiCo accomplishment? "Getting Pepsi North America on the right track. I (came) in (from Tropicana in 1999) knowing nothing about the soft drink industry, the bottlers, and (was) able to get on a steep learning curve and build and leverage a great team ... I came in right after the PBG (IPO). It was a tough time. Partnering up with (former PBG CEO) Craig Weatherup, my team, the PBG team and the rest of the bottling system, (we were) able to get Pepsi on a good run. We felt very good in terms of the way we were able to compete in the marketplace. We were able to dial up the innovation, marketing and alignment with the bottlers. Driving the top and bottom lines for all of PepsiCo Beverages/Foods and the contributions my organizations have made over the years to PepsiCo's consistently strong results -- I'd say that's near the top of my list."

Thoughts on leaving? "It's a really tough decision. I love the company, I love the brands, I love the people. But, I know I really want to run something, and that's probably not in the cards at PepsiCo, primarily from an age standpoint. I'm not presumptuous to say that even if I were younger it would happen. But I know for a fact that my age is not in my favor with Steve being only four years older. It's a really tough decision, but I know it's the right one."