By Investing.com Staff
Starbucks (NASDAQ:SBUX) found a new CEO to replace founder Howard Schultz, who will be stepping down as interim CEO after a transition period. The company announced that Reckitt CEO, Laxman Narasimha, would step into the top spot.
The news comes at an important time for Starbucks, which has been battling labor shortages, wage pressures, and unionization.
Investors initially cheered the news, sending Starbucks shares 0.6% higher after-hours Thursday.
Narasimhan will join Starbucks as incoming CEO on October 1, 2022, after relocating from London to the Seattle area and will work closely with Mr. Schultz, interim, before assuming the CEO role and joining the Board on April 1, 2023. Schultz will remain in the role of interim CEO during this transition period, following which he will continue as a member of the Starbucks Board of Directors.
“Laxman is an inspiring leader. His deep, hands-on experience driving strategic transformations at global consumer-facing businesses makes him the ideal choice to accelerate Starbucks growth and capture the opportunities ahead of us. His understanding of our culture and values, coupled with his expertise as a brand builder, innovation champion, and operational leader will be true differentiators as we position Starbucks for the next 50 years, generating value for all our stakeholders. On behalf of the entire Board, I am thrilled to welcome Laxman as Starbucks next ceo,” said Mellody Hobson, Independent Starbucks Board of Directors chair.
“When I learned about Laxman’s desire to relocate, it became apparent that he is the right leader to take Starbucks into its next chapter. He is uniquely positioned to shape this work and lead the company forward with his partner-centered approach and demonstrated track record of building capabilities and driving growth in both mature and emerging markets. As I have had the opportunity to get to know him, it has become clear that he shares our passion of investing in humanity and in our commitment to our partners, customers, and communities. The perspectives he brings will be a strong asset as we build on our heritage in this new era of greater well-being. I greatly look forward to our partnership over the coming months and years,” said Schultz.