Seattle-based coffee chain Starbucks (SBUX) has named Laxman Narasimhan as its new chief
executive officer (CEO).
Narasimhan most recently served as CEO of health and hygiene company Reckitt Benckiser
(RKT), which owns brands such as Lysol and Mucinex. He will join Starbucks in October and
learn about the company before assuming the CEO job next April.
Until then, Howard Schultz will carry on as interim CEO of Starbucks. Schultz will remain on
Starbucks’ board after Narasimhan succeeds him in the top job.
Starbucks has been searching for a permanent CEO ever since Kevin Johnson retired this past
spring after five years in the role.
Schultz has said that he wants to reinvent Starbucks to reflect how the world has changed since
the pandemic. The company is holding an investor day on September 13 in Seattle, where it’s
expected to unveil more details about the changes the company plans to make.
Narasimhan also previously worked at PepsiCo (PEP), serving as its global chief commercial
officer. Prior to working at the food and beverage giant, he was a senior partner at consulting
firm McKinsey.
Starbucks is currently grappling with a union push, with more than 200 stores in the U.S. voting
to organize under the labour group Workers United. The union battle has resulted in negative
media headlines and multiple lawsuits.
Starbucks’ stock is down 27% this year and trading at $85.40 U.S. per share.
