New Starbucks CEO Laxman Narasimhan Takes Reins From Howard Schultz Ahead Of Schedule

Starbucks Corporation SBUX said Monday that Laxman Narasimhan had assumed the role of CEO and will be joining its board of directors.

What Happened: Narasimhan, 55, was named the incoming CEO on Sept. 1, 2022. He has spent the last two months learning about Starbucks including earning his barista certification. 

Narasimhan replaces three-time CEO Howard Schultz, who had planned to exit his latest stint after the annual shareholder meeting on March 23. Earlier, Starbucks had said Schultz would remain interim CEO until April 1 this year.

Schultz was the CEO between 1986 and 2000 and again from 2008 to 2017. He took over the company again in April 2022 after Ken Johnson announced his retirement.

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Why It Matters: Narasimhan is now expected to lead Starbucks’ annual shareholder meeting, according to the company statement.

Schultz, who is also a founder of Starbucks, is to testify before the Senate Health, Education, Labor, and Pensions Committee led by Sen. Bernie Sanders (I-Vt.).

The HELP committee said in a statement that the National Labor Relations Board has issued over 80 complaints against Starbucks for violating federal labor law.

Schultz agreed to testify after Sanders said the latter could be subpoenaed. Starbucks is grappling with a rising number of employees who are voting to join unions.

Price Action: On Monday, Starbucks shares closed 1.2% higher at $99.85 in the regular session, according to data from Benzinga Pro.

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