Starbucks CEO Howard Schultz, left, with new CEO Laxman Narasimhan, September 7, 2022.
Source: CNBC
Starbucks said on Monday that Laxman Narasimhan had officially taken over as CEO, nearly two weeks ahead of schedule.
He will lead the coffee giant’s annual shareholders’ meeting on Thursday, marking his first public address as chief executive.
After being named the new CEO in September, Narasimhan spent months learning about Starbucks’ business, including training as a barista. The official transition was to take place on April 1.
Prior to his appointment, he was managing director of Reckitt, which owns brands like Lysol, Durex and Mucinex. He also previously worked at PepsiCo and McKinsey.
Narasimhan takes the reins from Howard Schultz, who completes his third stint at the top of the standings.
“Today I entrust you all to Starbucks – something that holds a place in my heart after that of my beloved family,” Schultz wrote in a letter to company management that was seen by CNBC. .
Schultz returned nearly a year ago after former CEO Kevin Johnson surprised investors by announcing his retirement.
This time around, Schultz suspended the company’s buyout program for months, pushed back on baristas’ union plans and announced a new strategy to keep up with the company’s business transformation.
Since Schultz’s return on April 4, Starbucks stock has risen nearly 8%, bringing its market value to $113 billion. The S&P 500, meanwhile, fell more than 13% during this period.
Although he resigned earlier than expected, Schultz is still expected to testify before a Senate panel on March 29 about the company’s alleged union-busting activities.
In September, Schultz told CNBC that he never plans to return as chief executive of Starbucks.
Investors lobbied the company to make sure that never happened. On Thursday, shareholders will vote on a proposal by SOC Investment Group, which represents union-sponsored pension funds, that would require Starbucks’ board to begin succession planning at least three years in advance.
