Virginia “Pepper” Potts was Personal Assistant to Anthony Stark through out the first movie she is seen as a loyal friend and confidante of the billionaire. They playfully flirt but keep a professional boss/employee relationship until Tony returns from Afghanistan.
After his return from Afghanistan, things dramatically change between them as they both realize how much they need each other. Pepper is furious that Tony is willing to risk his life by becoming Iron Man but ultimately comes to terms with his new alter ego and reluctantly agrees to hack into Stark Industries’ computer system to help him.
There she discovers that Stane has been supplying terrorists with Stark weaponry and hired the Ten Rings to kill Stark, but the group reneged on the deal upon discovering who the target was.
She later meets with Agent Coulson of “Strategic Homeland Intervention, Enforcement and Logistics Division”, a counter-terrorism agency, to inform him of Stane’s activities. After Stane attacks Tony on the roof of Stark Industries he tells Pepper to blow up the reactor core, but she is reluctant to set it off as Tony is still on the roof, however she sets it off and Tony is still safe, but his reactor fails but the echo of Pepper yelling his name seems to bring him back.
In Iron man 2, Potts is promoted to Stark Industries’ CEO while Tony is attempting to set his affairs in order due to his impending death due to the poisonous side-effects of the arc reactor’s power source. After much tension due to the fact that he won’t tell her what is happening to him, things come to a head at Tony’s birthday party. He drunkenly admits that he loves her and proceeds to blow up his mansion in a fight with Rhodey.
After a failed attempt at reconciliation with Tony, Pepper attends the Stark Expo where she and Natasha Romanov expose Justin Hammer’s crimes and his association with Whiplash. As Natasha is trying to hack into Rhodey’s armor, Pepper learns the truth about Tony’s condition. She is distraught but rises to the occasion by helping to evacuate the Expo and refuses to leave the site until everyone is safe and out of harm’s way.
After Vanko’s drones start to detonate, Tony saves Pepper from the exploding drones’ remains. She quits as CEO, and they finally kiss.
When talking to Nick Fury at the end of Iron Man 2, Tony tells him that he and Pepper are in a stable-ish relationship and his life was back on track.
Pepper Potts is played by Gwyneth Paltrow. Paltrow asked Marvel to send her any comics that they would consider relevant to her understanding of the character, who she considered to be very smart, levelheaded, and grounded. She said she liked “the fact that there’s a sexuality that’s not blatant.” Jon Favreau wanted Potts’ and Stark’s relationship to be reminiscent of a 1940s comedy, something which Paltrow considered to be “fun in a sexy, yet innocent way.”
She is scheduled to appear again in Iron Man 3.