By Kelly Riddell Nov. 18 (Bloomberg) — DirecTV Group Inc. , the largest U.S. satellite-television provider, named PepsiCo Inc.’s Michael White as its next chief executive officer to strengthen the company’s brand amid escalating competition. White will take over Jan. 1, El Segundo, California-based DirecTV said today in a statement. White, vice chairman and CEO of PepsiCo’s international unit, said in September that he would retire this year from the world’s second-largest soda maker. PepsiCo CEO Indra Nooyi credited White, 57, with helping boost international sales to almost $20 billion, more than double the amount when he became head of the division in 2003. He joins DirecTV as cable and phone companies, such as AT&T Inc. , spur competition by offering Web, phone and TV services in one package. DirecTV has sought a new CEO since Chase Carey left in June to become News Corp.’s chief operating officer. “From Mike’s background at Pepsi, it makes a lot of sense,” said Matthew Harrigan , an analyst at Wunderlich Securities in Denver. “Pepsi is one of the greatest brands out there. Mike can continue to build what Chase started.” Capitalizing on DirecTV’s exclusive programming, such as NFL Sunday Ticket, will help lure more subscribers, said Harrigan, who recommends buying the shares and doesn’t own any himself. PepsiCo CEO “I know every PepsiCo associate across the globe joins me in congratulating Mike on his appointment,” Nooyi said today in an e-mailed statement. “We will miss Mike’s influence throughout PepsiCo, but we are thrilled for him as he begins a new chapter — taking on the opportunity of leading a world-class digital television organization.” White, who will also become a DirecTV board member, joined PepsiCo in 1990. Before that, he served in executive positions at Avon Products Inc. , Bain & Co. and Arthur Andersen & Co. White has a bachelor’s degree from Boston College and a master’s in international relations from Johns Hopkins University. He’s been a director at Whirlpool Corp. since 2004. “For any company that can land someone of that magnitude, they’re doing pretty darn good,” said Jack Russo , an analyst who follows the beverage industry for Edward Jones & Co. in St. Louis. “He was doing a great job” at PepsiCo, Russo said. White’s 2008 compensation of $10.1 million at the soda maker included a base salary of $1 million and stock and option awards, according to a company filing. Carey’s compensation at DirecTV last year totaled $12.3 million, including a base salary of $2.3 million. The company didn’t say how much White will be paid. ‘Thorough Search’ DirecTV’s sales last quarter climbed 9.7 percent to $5.47 billion from a year earlier, bolstered by demand for digital-video-recording services and high-definition TV. “After a very thorough search, we have found an exceptional leader with a sustained track record of success, profitably growing businesses and a reputation for making the impossible possible,” said John Malone , DirecTV’s chairman. In May, DirecTV announced plans to combine with Malone’s Liberty Media Corp.’s entertainment unit , reducing Malone’s voting power in DirecTV and giving it more freedom to pursue strategic initiatives. Shareholders are set to vote on the combination tomorrow. DirecTV rose 11 cents to $31.04 at 4 p.m. New York time on the Nasdaq Stock Market. The shares have gained 35 percent this year. Pepsi, up 14 percent this year, fell 30 cents to $62.30 in New York Stock Exchange composite trading . To contact the reporter on this story: Kelly Riddell in Washington at kriddell1@bloomberg.net
Read more from the original source:
DirecTV Appoints Pepsi Vice Chairman White as Next Chief, Succeeding Carey
