The Walt Disney Company announced on Monday the appointment of Hugh F. Johnston, a seasoned executive with a 34-year career at PepsiCo, as its new Senior Executive Vice President and Chief Financial Officer (CFO), effective from December 4th. Johnston will replace Christine McCarthy, who took a family medical leave of absence earlier this year.

Johnston, currently the Vice Chairman and CFO of PepsiCo, brings a wealth of experience to his new role at Disney. He has held various leadership positions at the food and beverage giant since joining in 1987. Most notably, as CFO of PepsiCo since 2010, Johnston played a pivotal role in delivering consistent growth and high-quality earnings, surpassing expectations for 55 consecutive quarters.

The appointment of Johnston came as a surprise to many, including industry analysts. Gerald Pascarelli, a Senior Vice President at Wedbush Equity Research, commented, "It was a bit of a surprise to me, and I think it was a bit of a surprise to the Street. But these things happen. It's just one of the realities of the business, and Pepsi is going to be well-positioned to handle the transition."

Johnston was praised by Disney's former CEO, Bob Iger, as "one of the best CFOs in America." Iger expressed confidence in Johnston's ability to drive growth and value creation, emphasizing his expertise and track record of unlocking efficiencies in previous roles.

As part of his compensation package, Johnston will receive a base salary of $2 million, a bonus, a stock award of $14 million, and a one-time signing bonus of $3 million.

The new CFO joins Disney during a challenging period for the entertainment conglomerate. The company faced Hollywood strikes, declining streaming revenue, and the presence of activist investor Nelson Peltz, who recently acquired a $2.5 billion stake in Disney. Peltz has expressed interest in gaining multiple seats on the company's board of directors.

Johnston's experience with dealing with activist investors at PepsiCo could prove invaluable in navigating Disney's current situation. During his tenure, Peltz campaigned for changes at PepsiCo, but the company managed to fend off a potential proxy war and successfully persevered.

Disney will release its earnings report for the most recent quarter on November 8th. This will provide further insight into the challenges and opportunities that Johnston will face as he assumes his new role as CFO.

With Johnston's appointment, Kevin Lansberry, who had been serving as interim CFO, will return to his position as CFO of the Disney Experiences segment.

The arrival of a seasoned executive like Johnston with a proven track record is expected to bring stability and expertise to Disney's financial operations, as the company continues to navigate the ever-changing landscape of the entertainment industry.