PepsiCo, Inc. (NYSE:PEP) has done well so far and has surprised the street after welcoming Richard Fisher on its board of directors on Monday. Fisher is a seasoned financial heavyweight, who has joined the company’s board right from yesterday. Prior to Pepsi, Fisher was a former head of the Federal Reserve Bank of Dallas. Following the announcement, the stock of Pepsi showed little movement as it moved up by 51 cents and remained quite static at $95.85.
Logical or not
Jim Cramer was among the one to respond to PepsiCo, Inc. (NYSE:PEP)’s move. During show ‘Squawk on the Street’, Cramer tried to find the logic of the company’s selection for its board. He said that Fisher is a more of anti-accomodative and excels at provoking discussions. Cramer said that PepsiCo, Inc. (NYSE:PEP) is attempting to build its board of people, who have an in-depth hold on both overseas and domestic finance scenario. However, he added that investors should not be buying PepsiCo, Inc. (NYSE:PEP) just because they placed a financial overweight on the board. He said that it would be a bad call.
Fisher is known for being a policy hawk, who came on PepsiCo, Inc. (NYSE:PEP)’s board after working with the Dallas Fed for the last ten years. He had officially stepped down from his position four days back. Other than Fisher, the company also added William R. Johnson, who is a former chairman and CEO of H.J. Heinze, which is an advisory partner to Trian Fund Management, headed by activist investor Nelson Peltz. It is to be noted that Pelson has been pushing PepsiCo, Inc. (NYSE:PEP) to split off its drinks division from its snacks unit.
As the craze for soda loaded drinks are fizzing out, companies like PepsiCo, Inc. (NYSE:PEP) have to look constantly for improving sales. After receiving improved sales growth in Egypt, the company has pledged $500 million investment in the region.