PepsiCo Boss to Assume New Chair at B-School

Pepaice Chief Operating Officer Andrall E. Pearson will this spring assume a newly created chair at the Business School that stresses business experience over academic training, according to a statement released yesterday.

The appointment of Pearson, who has never held an academic post, comes after Dean of the Business School, John H. McArthur, courted the businessman last summer and recommended his tenure to the University at the end of October.

Pearson, second in command at the company and a 1947 graduate of the Business School, was unavailable for comment yesterday.

Administration (MBA) Class of 1958 Created a $1.3 million endowment for the position at their twenty-fifth reunion last year, requesting that the recipient have "innovative and non-conventional talents," and prefering "practitioners or academics from outside the regular tenured faculty," according to the statement.

Although there was some speculation over the business executive's limited academic experience, McArthur said Pearson's practical experience would benefit the B-School faculty.

"It is absolutely critical that our faculty have a well-based understanding of the changing needs of business and the problems that business leaders are trying to address," McArthur said in an October statement.

Although Business School officials said they do not know what of if Pearson will teach, the soft drink company head has previously indicated that he would like to do work in marketing and business policy.

Sciff Professor of Investment Banking Samuel L. Hayes III said the B-School is "trying to broaden the net" for people with distinguished business background, adding that Pearson was "one of [the B-School's] best catches."

Since Pearson joined PepsiCo, which is a parent corporation for six operating divisions including Pepsi-Cola and Frito-Lay, in 1971 the firm has increased its sales from $1 to $8 billion.

The tenure decision became effective on the first of this year, following approval from the University Governing Boards.