Starbucks CEO Howard Schultz, left, with incoming CEO Laxman Narasimhan, Sept. 7, 2022.
Source: CNBC
Starbucks on Monday said Laxman Narasimhan has officially turn out to be CEO, nearly two weeks sooner than expected.
He’ll lead the coffee giant’s annual shareholder meeting Thursday, marking his first public address as its chief executive.
After being named incoming CEO in September, Narasimhan has spent months learning about Starbucks’ business, including training as a barista. The official transition was expected to occur April 1.
Before his appointment, he was chief executive 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’s ending his third stint in the highest job.
“Today, I’m entrusting you all with Starbucks – something that holds a spot in my heart second only to that of my beloved family,” Schultz wrote in a letter to company leadership that was viewed by CNBC.
Schultz returned nearly a 12 months ago after former CEO Kevin Johnson surprised investors by announcing his retirement.
This time around, Schultz suspended the corporate’s buyback program for months, pushed back against baristas’ union plans and announced a latest technique to sustain with how the corporate’s business has transformed.
Since Schultz returned April 4, Starbucks stock has risen nearly 8%, bringing its market value to $113 billion. The S&P 500, meanwhile, has fallen greater than 13% over that point.
Despite stepping down sooner than anticipated, Schultz continues to be expected to testify in front of a Senate panel on March 29 concerning the company’s alleged union-busting activity.
In September, Schultz told CNBC that he’s never planning on coming back as Starbucks’ chief executive again.
Investors have been putting pressure on the corporate to be certain that that never happens. On Thursday, shareholders will vote on a proposal from SOC Investment Group, which represents pension funds sponsored by unions, that will require the Starbucks board to begin succession planning at the least three years upfront.
