Less than a year-and-a-half after permanently replacing Howard Schultz as the CEO of Starbucks, Laxman Narasimhan is stepping down.
Beginning Sept. 9, Brian Niccol, the chairman and CEO of Chipotle, will take over as permanent CEO. In the meantime, Starbucks Chief Financial Officer Rachel Ruggeri will serve as interim CEO. Additionally, current Starbucks board chair Mellody Hobson, an instrumental figure in the appointment of Narasimhan, has been named lead independent director, the company announced today.
The executive shakeup follows missed sales targets, predominantly in the key markets of the United States and China. It also comes amidst pressure from activist hedge fund investors for changes among Starbucks’ leadership and board, according to multiple Wall Street Journal reports.
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Narasimhan took over as CEO ahead of schedule last year — as three-time CEO and business celebrity Howard Schultz was preparing to testify in front of a Senate committee regarding the company’s labor practices.
Schultz, who remains part of Starbucks as chairman emeritus, was outspoken in March of this year regarding the company’s direction in the United States. In an announcement from Starbucks today, Schultz said Niccol has his “respect and full support.”
Niccol, who joined Chipotle as CEO in 2018, was previously the chief executive of Taco Bell and held numerous leadership roles at Pizza Hut. A former Proctor & Gamble manager, Niccol is on the board of directors of Walmart.
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