5 things to know about Starbucks new CEO

Mellody Hobson, Starbucks chairwoman said that the company believes it has found an exceptional individual to be its next CEO as Narasimhan is a tested leader, according to The Wall Street Journal.

“We have asked Schultz to remain as interim CEO until April 2023 to assist the new CEO. Narasimhan will assume the CEO role on April 1. He will take over the world’s largest coffee chain in a number of locations and sales,” Hobson added as quoted by The Wall Street Journal.

All you need to know about Starbucks new CEO

1) Laxman Narasimhan was CEO of Reckitt, which also makes Durex condoms, Enfamil baby formula and Mucinex cold syrup. He announced his departure from that post earlier on Thursday, and FTSE-listed Reckitt’s shares fell 4%, according to news agency Reuters.

2) Narasimhan, new Starbucks CEO, had joined Reckitt in September 2019 and was the first external candidate to take the helm at Reckitt since it was formed in 1999. 

3) He previously worked at PepsiCo, which is a Starbucks partner for ready-to-drink products, as its global chief commercial officer, and had gained plaudits from Reckitt investors for his management style after helping revitalize the company after a sales slump.

4) Ashish Sinha, portfolio manager at Reckitt shareholder Gabelli said that Narasimhan took a very balanced and systematic approach to strategy to get things right and he did not even go in all guns blazing. 

5) According to a regulatory filing, Narasimhan will be paid $1.3 million in annual base salary and will also receive a $1.6 million cash signing bonus and a replacement equity grant with a target value of $9.25 million to make up for incentives that he’s forfeiting by leaving Reckitt, as per Bloomberg reports.

(With inputs from agencies)

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