Winning Bizness Desk
Mumbai. In a significant shift in leadership at global coffee giant Starbucks, Laxman Narasimhan has announced his departure as CEO, with Brian Niccol set to succeed him. Niccol, who is currently at the helm of Chipotle Mexican Grill, will officially assume the role of CEO on September 9, 2024. Until Niccol’s arrival, Starbucks’ Chief Financial Officer Rachel Ruggeri will serve as interim CEO. Before leading Starbucks, Laxman Narasimhan held notable positions in the corporate world. The 57-year-old executive previously served as CEO of Reckitt Benckiser and held several senior roles at PepsiCo, including CEO of its Latin America, Europe, and Sub-Saharan Africa divisions. His extensive experience also includes a stint as a senior partner at McKinsey & Company. Narasimhan holds degrees in Mechanical Engineering from Pune University, a Master’s in German and International Studies from The Lauder Institute at the University of Pennsylvania, and an MBA from the Wharton School of the University of Pennsylvania.
Laxman never worked after 6 pm
The announcement of Narasimhan's exit has been accompanied by a viral social media discussion centered around his work habits. An interview from earlier in Narasimhan's career, in which he emphasizes his commitment to maintaining a work-life balance by not working past 6 p.m., has resurfaced. This aspect of his work style has sparked debate and is being cited in various discussions about his departure. Narasimhan joined Starbucks in March 2023 but will be stepping down just over a year into his tenure.
Brian Niccol's New Role
Brian Niccol, currently leading Chipotle Mexican Grill, will take over as Starbucks CEO in September. Niccol, who has been with Chipotle since March 2018, previously served as the CEO and Chairman of the board. Before joining Chipotle, he was the CEO of Taco Bell, where he also worked as President and Chief Marketing and Innovation Officer.
CEO Turnover Trends
Narasimhan’s departure contributes to a broader trend of high CEO turnover. According to Russell 3000, which tracks performance metrics for 3,000 American companies, 74 CEOs have left their positions in the financial year 2023-24. This figure represents a significant increase, with 74 of the 191 CEO departures being involuntary, marking the highest turnover rate since tracking began in 2017. The transition at Starbucks underscores ongoing shifts in corporate leadership, reflecting both the challenges of executive roles and the dynamic nature of global business environments.
