Friday, December 18, 2009

Pepsico CEO should be fired

I had the misfortune of watching the CEO of PepsiCo (NYSE: PEP), Indra K. Nooyi, on Cramer's Mad Money last night. She sounded like a stark-raving mad socialist. Here is my best effort at transcribing one of the most offensive statements with respect to PepsiCo's "Performance with Purpose" doctrine:

We believe that the new future is public/private partnerships – where companies feel responsible for society at large... If society has a problem with obesity, rather than say 'it is not my problem,' you work with the lawmakers, work with the regulators, legislators and NGO’s to say, “how can we address it?”

That all sounds real cheery and makes for great PR for the government-controlled media, but a company's job is to make money for its shareholders, not take responsibility for society at large. We don't need companys working with regulators to solve every perceived problem with mankind. One look at PepsiCo's website and you might think they are an environmental company instead of a food and beverage company. CEO's who lose sight of the mission of improving shareholder value should be fired. Boards who lose sight of the mission of improving shareholder value should be sued for breaching their fiduciary duties. Oh, I'm sure these folks would say that by doing these things, they are improving shareholder value, but that's doubtful. It appears to me that the board and the CEO are using shareholder money to advance their own left-wing radical agenda. American Family Association is already boycotting Pepsi for, among other things, donating money to causes that promote the radical homosexual agenda, including same sex "marriage." How, exactly does promoting the homosexual lifestyle build shareholder value?

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