1. Building Future Capabilities and Building Value
PepsiCo Global Finance Conference
Christopher Langhoff
Managing Partner
CCL Search LLC

2. Introduction / Bio
Christopher Langhoff
Chris brings a unique perspective to the recruitment of financial
officers. With over 20 years of experience as both a financial officer
and executive recruiter, he understands the role that he is recruiting for
and can communicate effectively to both candidates and clients on
many levels during the search process. His industry experience
includes the Consumer, Retail, Financial Services and Professional
Services sectors.
As a human capital expert, Chris has been both a Chief Human Capital
Officer for an alterative investment management firm and was a
Managing Director at Russell Reynolds Associates. In terms of this
financial background, Chris was the Chief Financial Officer of
Waterworks, a luxury specialty retailer. There, his primary focus was to
drive business results and develop a strong relationship with the
company's private equity ownership. Prior to Waterworks, Chris spent
more than 12 years in various senior finance roles at PepsiCo. During
his PepsiCo career, he was a member of the team that successfully
executed the IPO of Pepsi Bottling Group. He also worked in operating
finance roles for both Frito-Lay and PepsiCo Food Systems. Chris
began his career as an associate in the Equity Derivatives Group at
Goldman Sachs. .
Finally, in terms of his educational background, Chris received his B.A.
from Vassar College and his M.B.A. from Harvard Business School.
2

3. Building Future Capabilities and Building Value
• Finance as a strategic partner
• PepsiCo – an academy company in finance
• What does the current market value in CFOs
• Building capabilities
• Finance as a driver of operating performance
3

4. Finance as a strategic partner
While PepsiCo has long talked about Finance as a strategic partner others are
just getting around to that idea…
Their bosses, chief executive officers, no longer want mere number crunchers; they want them to provide
forecasts, manage risks and provide insight into issues ranging from pricing to production. As a result, CFOs
are emerging with far greater clout and responsibilities than before.
The Big New Role of the CFO – Forbes Magazine
Today’s CFOs are expected to play four diverse and challenging roles. The two traditional roles are steward,
preserving the assets of the organization by minimizing risk and getting the books right, and operator,
running a tight finance operation that is efficient and effective. It’s increasingly important for CFOs to be
strategists, helping to shape overall strategy and direction, and catalysts, instilling a financial approach and
mind set throughout the organization to help other parts of the business perform better.
Four Faces of the CFO – Deloitte.com
Excelling in accounting, controls and cash management still counts if you're a chief financial officer, but now
those skills are just the beginning.
Moving Beyond Finance – Wall Street Journal (CFO Journal)
Today's CFO is seeing their role and responsibilities evolve rapidly. Increasingly relied on for their financial
discipline and insights, these top finance executives also support and even help set organizational strategy
Evolving Role of the CFO - EY.com
4

5. PepsiCo – An academy company in finance
Number of CFOs of Public Companies with Revenues >$1BN
45 The commonality of the most prolific developers of CFOs
1. Complex multi-line business
40
2. Global in nature
35 3. Acquisitive
30 4. Strong relationship with the street
5. Dynamic – initiatives / change
25
6. Movement
20
15
10
5
0
General Honeywell PepsiCo General Ford Motor Goldman P&G Motorola McKinsey Dell
Electric Motors Sachs & Co.
Source: Boardex.com 5

6. Market View: What do companies value in financial officers?
Functional Skills
Personal
Competencies
Professional
Experience
Industry
Experience
Upside and
Potential

7. Scorecards: Measure & Compare
Candidates Candidate A Candidate B
Company
Current Role
Location
Knowledge & Functional Skills
Investor Relations
Treasury/Capital Structure
FP&A
Tax
Accounting / SEC Reporting
Operating Finance
Business Acumen
Analytical Skills
Overall Functional Analysis Score Score
Professional Experience
Vertically Integrated Company
Retail
Consumer
High Growth
Turnaround
Investor / BOD Interaction
IPO
International
Overall Experience Analysis Score Score
Personal Competencies
Leading Teams
Executing for Results
Setting Strategy
Drive / Energy
Building Relationships
Presence / Impact
Overall Competency Fit Analysis Score Score
7

8. Professional Experience: What is required for success?
1. Gain a breadth of finance experience; diversity is more important than vertical focus
2. Develop commercial insight; consider stepping outside finance
3. Build a balance between traditional finance and other skills
E&Y 4. Gain international exposure, especially in emerging markets
Next Generation
CFO 5. Participate in or lead finance transformation initiatives and major change programs
6. Seek M&A experience — both in transaction planning and post-merger integration
7. Get exposure to the market and its stakeholders; communications skills are a differentiator
8. Proactively build effective relationships with the board
8

9. Personal Competencies: Suggest how an individual will perform
Sees ahead clearly; can anticipate future consequences and trends accurately; has broad
knowledge and perspective; is future oriented; can articulately paint credible pictures
Strategic Agility and visions of possibilities and likelihoods; can create competitive and break through
strategies and plans.
Relationship Effective at forging strong personal interpersonal alliances at all levels both within and
outside the organization; builds solid relationships characterized by mutual respect,
Building & Influence loyalty, and trust.
Leads the building of effective teams committed to organizational goals; fosters
Team Builder collaboration among team members and among teams; uses teams to address relevant
issues.
Can negotiate skillfully in tough situations with both internal and external groups; can
Negotiating settle differences with minimum noise; can win concessions without damaging
relationships.
Demonstrates the capacity to change; able to successfully adjust to multiple demands,
Flexible/Adaptable shifting priorities, ambiguity, and rapid change; open to the viewpoints of others;
willingness to try new ways.
Is effective in a variety of public settings: one-on-one, small and large groups, with peers,
Public Confidence subordinates and senior management. Is effective internally and with external clients.
Intellectual Is bright and intelligent; deals with concepts and complexity comfortably; described as
intellectually sharp, capable and agile
Horsepower
Integrity Is widely trusted; is seen as a direct, truthful individual; can present the unvarnished
truth in an appropriate and helpful manner; keeps confidences; admits mistakes; doesn’t
and Trust misrepresent him/herself for personal gain.

10. Personal Competencies: What most companies value
Competency /
1 2 3 4 5
Rating
Unaware of Some awareness of Understands business Often evaluates Emphasises shareholder
competition competitors model for success decisions in financial value
Unaware of financial Some knowledge of key Knows current market terms Uses market knowledge
Business Acumen metrics financial metrics conditions Will sometimes to advance business
Misses Opportunities Knows the difference leverage commercial Consistently evaluates
between own org & relationships business impact
competitors
Thinks inside own Will contribute ideas Knowledgeable about Prepared to challenge Develops innovative
area Thinks medium term market trends convention strategies
Focuses solely on Will analyse plans Derives plans from the Will look broadly for Thinks cross function
Setting Strategy
execution strategy ideas Anticipates long term
Fails to contribute to Demonstrates some Considers trends trends
business conceptual thinking Visionary
Fails to deliver Will tackle some Track record of solid Meets stretch Distinctive track record
Does not prioritize obstacles performance objectives Resets performance
Executing for Results
effectively Generally prioritizes Acts on opportunities Translates missions benchmark
Gives up Often delivers Establishes clear plans into actionable plans
Does not delegate Will address some Delegates to Direct Promotes Direct Develops strong
Micromanages performance issues Reports Reports on merit succession plans
Does not coach or Experiences staff Uses team talent Builds high performing Builds highly effective
Leading Teams mentor turnover effectively teams diverse teams
Can run effective Clear objectives & Creates a vision
meetings priorities
Defers to others Relies on positional Articulates ideas Builds rapport and has Negotiates win-win
Building relationships Will not voice ideas power to influence Solicits opinions a highly adaptable solutions in seemingly
& influence Does not adapt others Effectively influences communication style impossible situations
communication style Sometimes uses logic some groups
Significant Area Area for Meets Job
Very Strong Towering Strength
for Development Development Requirements
10

11. Personal Competencies: What most companies value
Competency /
Rating
3 4
• Understands business model for success
• Evaluates decisions in financial terms
Business • Knows current market conditions
• Will sometimes leverage commercial
Acumen • Knows the difference between own org &
relationships
competitors
• Knowledgeable about market trends • Prepared to challenge convention
Setting Strategy • Derives plans from the strategy • Will look broadly for ideas
• Demonstrates some conceptual thinking • Considers trends
• Track record of solid performance • Meets stretch objectives
Executing for
• Acts on opportunities • Translates missions into actionable
Results • Establishes clear plans plans
• Delegates to Direct Reports
• Promotes Direct Reports on merit
Leading Teams • Uses team talent effectively
• Builds high performing teams
• Clear objectives & priorities
Building • Articulates ideas
• Builds rapport and has a highly
relationships & • Solicits opinions
adaptable communication style
influence • Effectively influences some groups
Meets Job Requirements Very Strong
11

12. Core Function Skills for CFOs
Skills & Capabilities Opportunity Expert
Operating Finance (FP&A)
Technical Accounting / Internal Control
Treasury / Capital Structure Management
BOD / Shareholder Interaction
Tax Compliance / Planning
Information Systems
M &A
Strategy
12

13. Functional Skills – the market narrows its focus/requirements
Skills & Capabilities Opportunity Expert
Operating Finance (FP&A)
Technical Accounting / Internal Control
Treasury / Capital Structure Management
BOD / Shareholder Interaction
Tax Compliance / Planning
Information Systems
M &A
Strategy
13

14. Operating Performance: Finance as a driver & partner
• Market savvy - internal and external understanding
• Collaborative effort leading to more effective execution
• Risk management – planning for unexpected events
• Global perspective
14

15. Operating Performance: CFOs as CEOs
The landscape for CFOs continues to change.
Ten years ago, companies wanted a strategist, 61 Fortune 500 CEOs were CFOs
perhaps a dealmaker, as their CFO. of their companies
Five years ago, with the passage of Sarbanes-
Oxley, companies looked to recruit CFOs
with strong functional accounting skills,
ideally with a Big Four background. As we
work our way though the worst economic
environment in the last 40 years.
Companies now require more — a great
leader and communicator with strong strategy
skills and the ability to drive performance.
They want an individual who can rise up in
the organization and be a solid contender for
the CEO spot.
15

16. Operating Performance: CFOs as CEOs
Learning's from our research
Experiences to get you in position Once in the role what is the focus
 Get out into the business Focus on People 
 Put the finance house in order Focus on Growth 
 Prepare for higher stakes and greater Interpersonal Skills 
personal demand Communicating with the Street and 
 Cultivate ―Big Picture‖ Thinking Board
 Anticipate and align top executive
support
The difference between CFOs and CEOs is narrowing as the key elements
of both roles come together resulting in succession opportunities
16

17. Building capabilities: awareness, discipline, effort & opportunity
Functional Preparation
Development of core analytical
skills of finance and an in-depth
understanding of theories/practices
that help to drive shareholder value Capability
Development
Wheel

18. PepsiCo Finance a Winning Team with Great Tradition
Christopher Langhoff
Managing Partner
CCL Search LLC