Staffing

Laxman Narasimhan takes over Starbucks CEO role

Provided

March 20, 2023

Laxman Narasimhan, who was named incoming CEO of Starbucks last year, has officially succeeded Howard Schultz as CEO.

Over the past five months Narasimhan embarked on an immersion experience, traveling to work with employees in over 30 stores, manufacturing plants and in support centers around the world, earning his barista certification along the way, according to a company press release.

Narasimhan's first act as CEO will be leading the Starbucks Annual Shareholder meeting scheduled for Thursday.

Following the global search for the new leader of Starbucks, Narasimhan joined the company as incoming CEO on Oct., 1, 2022, bringing nearly 30 years of experience leading global consumer goods businesses and advising retail, grocery, restaurant and e-commerce companies.

Since Schultz returned last year, Starbucks unveiled a companywide reinvention strategy and continued to deliver on over $1 billion in investments in retail partners and stores for prioritized areas such as increased pay and sick time accrual, financial well-being benefits, modernized training and collaboration, store innovation and equipment and the celebration of coffee, according to the release. The company saw a 47% stock price increase since the Q2 FY22 earnings call through the Q1 FY23 earnings call, and market cap growth of approximately $40 billion during that same time.

"The board wants to express our sincerest thanks to our founder, Howard Schultz, for selflessly picking up the leadership mantle when asked — forgoing compensation and putting aside his own pursuits — for the love of our company and its partners," Mellody Hobson, Independent Starbucks Board of Directors chair, said in the release. "We would not be where we are without him."

"I am humbled to officially step into my role as Starbucks chief executive officer, leading our incredible team of more than 450,000 green apron partners around the world," Narasimhan said in the release. "The foundation Howard has laid — building from scratch an iconic global brand fueled by a lasting passion to uplift humanity — is truly remarkable, and I am honored to have the opportunity to build on this deep heritage," said Narasimhan. "As a human connection business, we have limitless possibilities to deliver for our partners, our customers, our investors and our communities through every cup and every connection. I am excited to work alongside our partners worldwide to unlock the limitless future of Starbucks."

Laxman's intensive immersion into the business coupled with his extensive experience as a proven brand builder, innovator and operator have uniquely prepared him to lead Starbucks into its next phase of growth, Hobson said.

"This immersion has deepened Laxman's understanding of Starbucks culture and values. In this time of learning and listening, he has already won the hearts and minds of our partners around the world," she said.