Starbucks, revolution at the top: new CEO arrives (and the share price flies)
Laxman Narasimhan leaves, relaunch entrusted to Brian Niccol after pressure from activist investors
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Key points
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Starbucks is changing its top management and seeking a shake-up for the relaunch. The American group has appointed the current head of Chipotle Mexican Grill, Brian Niccol, as its next CEO. It is an abrupt change of management for the coffee chain, which is trying to turn around its fortunes and confront activist investors.
In the meantime, the shake-up arrived on the stock market: on the wave of the revolution at the top, the share price rose by more than 20 per cent.
The Seattle-based company said that Niccol will assume the position of ceo and executive chairman of the board on 9 September. The current head of Starbucks, Laxman Narasimhan, will step down as CEO and board director immediately.
Mellody Hobson, Executive Chairman of Starbucks from 2021, will become the lead independent director.
In an interview today, Hobson said that the company started discussing a leadership change about two months ago and contacted Niccol. The decision to choose him, he said, was made solely by the Starbucks board of directors, and that former Starbucks CEO Howard Schultz was brought in about a week ago. Schultz met with Niccol and approved him, Hobson said.
