Nearly 30 years of experience in management and consulting for international consumer brands goes to Laxman Narasimhan.
Laxman Narasimhan was recently named the new CEO of Starbucks, the world’s largest coffee chain (CEO). An article in The Guardian claims that the company will now pay him a substantial salary. The outlet claims that if Mr Narasimhan achieves his goals, he will earn around $17.5 million (about Rs 140 crore) per year. He left Reckitt Benckiser to become CEO of Starbucks. Mr Narasimhan received an annual salary of £6m from Reckitt Benckiser (Rs 55 cr).
The 55-year-old’s position is better in many ways. Starbucks generates around $100bn (£87bn) in revenue, according to The Guardian, while Reckitt Benckiser is worth £45bn. As a result, Mr. Narasimhan will have a lot more personal incentives.
The world’s largest specialty coffee roaster and retailer is Starbucks, with 34,000 locations worldwide and a successful track record spanning five decades.
Mr Narasimhan is set to start working for the top coffee company as its next CEO on October 1 after moving from London to Seattle. Before officially becoming CEO and joining the board on April 1, 2023, he will work closely with named interim CEO Howard Schultz.
Mr. Narasimhan has nearly 30 years of experience in managing and advising international consumer brands.
He held several leadership positions at PepsiCo, including Global Chief Commercial Officer, where he was responsible for the company’s long-term strategy and technological prowess. He graduated from the University of Pune with a degree in Mechanical Engineering.
As the company’s CEO, Mr. Narasimhan’s biggest challenge will be dealing with Starbucks’ worsening labor relations issues. According to a statement from Starbucks, Mr. Narasimhan would spend his first few months getting to know staff members around the world.
All the information you need to know about Narasimhan
Laxman Narasimhan, an Indian-born former CEO of Reckitt, was chosen by US coffee giant Starbucks after a five-month external search as its new CEO. Starbucks Independent Board Chair Mellody Hobson said former CEO Kevin Johnson, who also held the position for at least five years, has been replaced by Hobson.
Narasimhan will leave London for the Seattle area on October 1, 2022 to take over as the new CEO of international coffee chain Starbucks. He will work closely with interim CEO Howard Schultz until April 1, 2023, when he will take over as CEO and join the board.
He understands our lifestyle and our morals, and his skills as a brand builder, king of innovation, and operational leader will be true differentiators and drivers as we position Starbucks for the next 50 years.
After graduating from Loyola High School, Pune, Narasimhan attended College of Engineering, Pune and graduated with a bachelor’s degree in mechanical engineering. After graduating, he moved to the United States and completed his Masters in International/Global Studies at the University of Pennsylvania. The Indian-born CEO of Starbucks also holds an MBA from the Wharton School.
Narasimhan began his career with the consulting firm McKinsey in Delhi and has since held several positions, including CEO, at major soft drink maker PepsiCo and British consumer health, hygiene and nutrition company Reckitt. .
Narasimhan, 55, is moving to Seattle to take up the CEO role at Starbucks. He was previously from London. Before moving to London nearly three and a half years ago, he lived and worked in New York.
During his tenure at Reckitt, the new CEO of Starbucks has shown the company great strategic transformation and a return to high-class growth. Narasimhan has nearly 30 years of experience and experience building brands with purpose, although he has no previous experience working in restaurants.
Prior to joining Reckitt, Narasimhan held several leadership roles at PepsiCo, including Global Chief Commercial Officer, where he was responsible for the company’s long-term strategy and digital capabilities. He has also worked as president of the company’s operations in Europe, Sub-Saharan Africa and Latin America, as well as CFO of PepsiCo Americas Foods and CEO of PepsiCo Latin America.
According to a Bloomberg report, he will be compensated for the incentives lost on leaving Reckitt with a replacement stock grant with a target value of US$9.25 million, a cash signing bonus of US$1.6 million. US and an annual base salary of US$1.3 million. In addition, Narasimhan has served as a director and member of a number of think tanks, including Verizon, The Brookings Institution, and the Nature Conservancy Latin America Conservation Council.
Narasimhan is the new CEO of an American giant of Indian origin, joining Sundar Pichai, Satya Nadella, Shantanu Narayen of Adobe, Punit Renjen of Deloitte and Raj Subramaniam of FedEx.
Does the outgoing CEO of Starbucks promise not to return?
After Starbucks announced a new succession plan last week, outgoing CEO Howard Schultz vowed he would never run the company again.
He said he wouldn’t return because Starbucks got the best person on CNBC’s “Squawk Box” on Wednesday.
Laxman Narasimhan, who recently served as CEO of Lysol’s parent company, Reckitt, will enter the coffee industry in October and take the helm in April. Schultz will continue to serve as an advisor and member of Starbucks’ board of directors after Narasimhan succeeds him.
Schultz, 69, returned to Starbucks for a third term as CEO after Kevin Johnson stepped down in April. Despite rumors from Wall Street and industry insiders, Schultz stood by his assertion that his current stretch would only be temporary.
Schultz claimed that when Johnson announced his retirement, he had no intention of returning to Starbucks. He led the Seattle coffeehouse chain to become a market leader while serving as CEO from 1986 to 2000 and again from 2008 to 2017. He has also openly discussed the prospect of running for president before the 2020 elections.
Narasimhan hasn’t started working for Starbucks yet, but Schultz told CNBC’s Andrew Ross Sorkin that he’s recently become “very familiar” with him. Prior to leading a turnaround at Reckitt, Narasimhan held various positions for PepsiCo and management consulting firm McKinsey. Wall Street’s reaction to Narasimhan’s appointment has been mixed. Schultz’s previous departure was announced in late 2016, and the stock price saw a double-digit decline.
Starbucks will also host an Investor Day in Seattle on Tuesday, and the company is expected to share more details about the reinvention strategy Schultz has developed.