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DealBook|Starbucks Replaces Chief Executive After Activist Investor Campaigns
https://www.nytimes.com/2024/08/13/business/dealbook/starbucks-ceo-out-laxman-narasimhan.html
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Starbucks makes a change at the top
This just in: Laxman Narasimhan is out as the C.E.O. of Starbucks, the company announced on Tuesday, a year and a half since he succeeded Howard Schultz at the coffee chain.
Narasimhan will be replaced by Brian Niccol, a fast-food industry veteran who executed a turnaround as C.E.O. of Chipotle. The 50-year-old executive will also assume the role of chairman at Starbucks.
Starbucks shares have fallen more than 20 percent since Narasimhan took the reins, hurt by slowing sales in the U.S. and China. Narasimhan has also been rocked by dueling activist investor campaigns and has had to fend off criticism from Schultz. It’s the company’s third leadership change in the past 18 months. Starbucks’ stock jumped more than 14 percent in premarket trading after the announcement; Chipotle was down about 9 percent.
Other changes: Mellody Hobson, who was instrumental in the hiring of Narasimhan, will stay on the board as lead independent director, but cede her role as chairwoman. Rachel Ruggeri, the Starbucks chief financial officer, will serve as interim C.E.O. until Niccol starts in mid-September.
Schultz, the retired three-time C.E.O. who was consulted on the hiring of Niccol, will remain chairman emeritus but he will not have an additional role at the company.
“Having followed Brian’s leadership and transformation journey at Chipotle, I’ve long admired his leadership impact,” Schultz said in a statement. “His retail excellence and track record in delivering extraordinary shareholder value recognizes the critical human element it takes to lead a culture and values driven enterprise.
