Keurig Dr Pepper announces CEO succession plan
CFO Ozan Dokmecioglu to become CEO later this year
Keurig Dr Pepper Inc. (NASDAQ: KDP) today announced a CEO transition plan that leverages the successful partnership between Chairman & CEO Bob Gamgort and CFO Ozan Dokmecioglu to ensure continuity of the Company's leadership and strategic direction, while strengthening KDP's focus on deploying its exceptional discretionary free cash flow to create shareholder value.
Keurig DrPepper
The KDP Board of Directors has appointed Ozan Dokmecioglu, currently Chief Financial Officer & President of International, as the Company's next Chief Executive Officer, effective July 29, 2022. Dokmecioglu will join the Company's Board of Directors at that time. Bob Gamgort, currently Chairman and CEO, has committed to serve as Executive Chairman of KDP for two years.
The announcement follows the successful completion of KDP's three-year merger integration period, including building the strength of the management team, and provides clarity on succession with a thoughtful transition plan. It also reflects the unique opportunity ahead for KDP to drive significant value creation through strategic capital allocation, following the completion in 2021 of the Company's deleveraging phase, and a heightened focus on continued operational excellence in a challenging and unpredictable macroeconomic environment.
Gamgort and Dokmecioglu will work in close partnership, as they have since the take-private transaction of Keurig Green Mountain in 2016 and subsequent merger with the Dr Pepper Snapple Group, collaborating on driving the strategic direction of the Company and maximizing the value creation potential of KDP. As CEO, Dokmecioglu will lead the execution of the Company's strategy and ensure continued operational excellence, both of which have enabled KDP to meet or exceed its public commitments, while Gamgort, as Executive Chairman, will lead the Board of Directors and oversee the deployment of KDP's significant discretionary cash flow. KDP's talented and experienced senior team will continue in their current roles, with the process for recruiting a CFO to succeed Dokmecioglu already underway.
Commenting on the announcement, Gamgort stated, "I am excited to partner with Ozan, our leadership team and the KDP Board of Directors to drive continued growth and value creation. As we move into the next chapter for our modern beverage company, we're establishing a leadership team that can guide the success of KDP well into the future."
As part of the transition, Gamgort and KDP have entered into an agreement for his role as Executive Chairman, in which Gamgort has committed to remaining a significant investor in KDP, maintaining at least half of his KDP shareholdings during his tenure as Executive Chairman.
"I am honored to assume the role of KDP CEO at this important time for our Company and look to the future excited by the enormous potential that lies ahead," stated Dokmecioglu. "I am grateful for the ongoing partnership with Bob and the support of our Board of Directors and leadership team, as we continue to work together to drive outsized value creation," he added.
KDP Lead Independent Director Paul Michaels stated, "We are pleased to appoint Ozan as our next CEO after a thorough succession planning process, including the consideration of internal and external candidates. Ozan is an exceptionally strong leader with the skills, experience, values and perspective to lead KDP into the future. We are also fortunate to have Bob in a position to continue working closely with Ozan and the leadership team over the next few years."
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