Starbucks’ new CEO gets a head start two weeks early

Laxman Narasimhan was officially named Starbucks' CEO on Monday, nearly two weeks earlier than expected.

‍

Thursday's annual shareholder meeting will be his first public speech as the company's CEO. He will preside over it.

‍

Narasimhan has spent months becoming familiar with Starbucks' operations after being named the company's new CEO in September. This includes receiving barista training. On April 1, the formal shift was anticipated to take place.

‍

He formerly served as Reckitt's chief executive officer, which is responsible for brands like Lysol, Durex, and Mucinex. In the past, he also had positions at McKinsey and PepsiCo.

‍

Howard Schultz, who is concluding his third tenure as CEO, is replaced by Narasimhan.

‍

“I am entrusting to you all the responsibility of managing Starbucks, a company that holds a special place in my heart second only to those of my beloved family,” Schultz wrote in a letter to the company's leadership viewed by Trade Algo.

‍

Former CEO Kevin Johnson announced his retirement nearly a year ago, prompting Schultz's return.

‍

This time, Schultz put the company's buyback program on indefinite hold, opposed barista union ambitions, and unveiled a new approach to stay up with the company's evolving business.

‍

The market value of Starbucks stock has increased by over 8% since Schultz's return on April 4, reaching $113 billion. In contrast, the S&P 500 has decreased by more than 13% during that time.

‍

While resigning earlier than anticipated, Schultz is still scheduled to testify before a Senate committee on March 29 over the business' allegedly anti-union practices.

‍

Schultz stated to Trade Algo in September that he has no intention of ever serving as Starbucks' CEO once more.

‍

The company has been under pressure from investors to make sure that never occurs. Shareholders will decide on a proposal from SOC Investment Group on Thursday that would have the Starbucks board begin succession planning at least three years in advance. SOC Investment Group represents pension funds supported by unions.