Inside PepsiCo’s Compensation Reset: A Strategic Benchmarking Journey with Abacus

Industry Focus and Scope 

PepsiCo, Inc. is a leading multinational corporation operating across the food, snack, and beverage industries, with a global footprint spanning manufacturing, distribution, and marketing of its diverse product portfolio. Managing an organization of such scale requires a compensation framework that not only reflects industry standards but also supports internal equity, workforce diversity, and business efficiency. 

To strengthen this alignment, PepsiCo partnered with Abacus to conduct an Executive Desktop Remuneration Survey. The initiative focused on analyzing and comparing executive compensation structures across various positions within the organization against selected peer groups. The project delivered two detailed CEO reports based on two distinct peer baskets, enabling in-depth benchmarking and clearer strategic insight into remuneration positioning. 

The Challenge: 

Maintaining Competitive Compensation Across a Complex Workforce 

As PepsiCo continued to evolve its leadership and organizational structure, it faced the critical task of ensuring that executive compensation remained competitive, equitable, and aligned with prevailing market benchmarks. This challenge was further compounded by the diversity of roles, job families, and career levels within the organisation, all of which required carefully tailored compensation strategies. 

At the same time, PepsiCo needed to ensure that its remuneration framework supported internal equity and business efficiency while remaining responsive to market trends and the varied needs of its workforce. Achieving this balance required focused analysis, clarity in benchmarking, and a structured understanding of where its compensation stood in relation to its peers. 

Key Challenges 

• Ensuring executive compensation remained competitive within the market and aligned with industry benchmarks. 
  
• Maintaining consistency in compensation structures across diverse job families and career levels. 
  
• Addressing the varying needs of a diverse workforce through customized compensation strategies. 
  
• Preserving internal equity while implementing differentiated remuneration practices. 
  
• Aligning compensation frameworks with business efficiency objectives. 
  
• Keeping HR policies in step with current market standards and evolving remuneration trends. 

The Solution:

Structured Remuneration Analysis by Abacus 

Abacus conducted an Executive Desktop Remuneration Survey designed to deliver a clear, structured, and data-driven assessment of PepsiCo’s executive compensation framework. The engagement focused on detailed evaluation, benchmarking, and analysis to support informed decision-making at the highest levels. 

Services & Solutions Delivered: 

• In-depth analysis of executive compensation across various positions within the company. 
  

• Comparative benchmarking through two distinct peer baskets, resulting in two detailed CEO-level reports. 
  

• Breakdown of remuneration based on job families and career levels to ensure fair and competitive structuring. 
  

• Comprehensive evaluation of benefits packages using Mercer’s Career Stream for competitiveness assessment. 
  

• Development of salary bands aligned with the 50th and 75th percentile of market data for precise benchmarking. 
  

• Identification of alignment between PepsiCo’s grading structure and industry standards. 
  

This structured approach enabled PepsiCo to gain a holistic view of its remuneration positioning and allowed leadership to approach future compensation decisions with greater clarity and strategic direction. 

Outcome & Impact:

Enhancing Compensation Strategy and Market Alignment 

The project provided PepsiCo with a clear and comprehensive overview of its executive compensation structure in comparison to its peers. With deeper visibility into remuneration benchmarks and structural alignment, the organization was able to make more informed and strategic decisions regarding its compensation policies. 

The insights supported the development of more tailored compensation strategies that addressed the diverse needs of the workforce while ensuring internal equity and improved operational efficiency. By aligning grading structures with industry standards and current market trends, the initiative strengthened PepsiCo’s ability to sustain a competitive, transparent, and strategically consistent executive remuneration framework. 

Conclusion 

The collaboration between Abacus and PepsiCo demonstrates the value of structured analysis and strategic insight in refining executive compensation practices. Through detailed benchmarking and comprehensive evaluation, Abacus supported PepsiCo in strengthening its HR policies, aligning its grading framework with industry standards, and enhancing the overall effectiveness of its remuneration strategy. 

This case study reflects how a focused, data-driven approach can reinforce organizational alignment, improve decision-making, and support sustainable business efficiency through well-structured compensation systems.