Starbucks finds new CEO to replace Howard Schultz

Starbucks Coffee Company has a new chief executive and it was confirmed on Thursday, Sept. 1. The coffee chain named Laxman Narasimhan as the CEO who will be Howard Schultz’s successor.

The new chief is set to take over starting in April 2023, and before then, Shultz will remain to assist with the smooth transition to new leadership. Narasimhan just stepped down as CEO of London-listed Anglo-Dutch Reckitt Benckiser multinational consumer goods company.

While still in the interim chief position until the early second quarter of next year, Schultz will remain in the company as an adviser. In any case, Reuters reported that the newly-appointed chief only joined Reckitt Benckiser in September 2019, and before that, he worked for PepsiCo.

Narasimhan is being lauded for his leadership that has successfully led Reckitt through the COVID-19 pandemic. Although it was a difficult period for most companies, he was able to help the company and increased sales of its health and hygiene products.

Once he officially moves to Starbucks, the new CEO is expected to lead the company through its chaotic period since many of its locations in the U.S. have unionized and workers are demanding better salaries and benefits amid the high inflation rating today.

As per CNBC, Starbucks is set to hold an investor conference on Sept. 13 in its Seattle headquarters, and more details about the leadership transition and plans will be revealed here. This will still be led by Schultz since his time as interim CEO is not up yet.

“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,” Starbucks’ independent board of directors chairman, Mellody Hobson, said in a statement.

She added, “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.”