(Alliance News) - Starbucks Corp on Thursday named outgoing Reckitt Benckiser Group PLC Chief Executive Officer Laxman Narasimhan as the successor to longitme boss Howard Schultz.
Earlier Thursday, Reckitt announced Narasimhan was stepping down to relocate back to the US and named former British American Tobacco PLC chief Nicandro Durante to step into the role on an interim basis.
Starbucks was able to clear up where Narasimhan was heading, confirming he will join the firm on October 1. He will work closely with Starbucks' interim chief executive Howard Schultz through April 1, 2023, when he will assume the CEO role and join the company's board.
"During the transition period, Narasimhan will be fully immersed in the company, spending time with Schultz and the management team, partners and customers and gaining in-depth exposure to the brand, company culture, and Reinvention plan. This will initially include Starbucks store immersions, visiting manufacturing plants and coffee farms, connecting with partners around the globe as well as Starbucks long term business partners," the coffee chain explained.
Starbucks noted Schultz "will remain closely involved with the company" after he steps back from interim CEO duties, and will remain on the company's board.
Schultz has served as Starbucks CEO from 1986 to 2000, then from 2008 to 2018, and returned in April to serve as interim CEO during the search for a new leader.
Reckitt had announced Narasimhan's surprise departure earlier on Thursday, citing "personal and family reasons".
"Laxman has decided for personal and family reasons to relocate back to the US and has been approached for an opportunity that enables him to live there," Reckitt explained.
Prior to his time at Reckitt, where he was appointed CEO in September 2019, he held various leadership roles at PepsiCo, including as global chief commercial officer.
He also served as chief executive of the company's Latin America, Europe and Sub-Saharan Africa operations.
Reckitt said Narasimhan will be replaced by Senior Independent Director Durante while the company "evaluates and selects" the future leadership.
Durante has previous experience heading up a FTSE 100 listing, having been the chief executive of cigarette maker British American Tobacco PLC for eight years before leaving in 2019. Durante was appointed to the Reckitt board in December 2013.
Starbucks closed 1.6% higher in New York on Thursday at USD85.40. Reckitt closed 4.9% lower in London at 6,323.45 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Reckitt (RKT)
British American Tobacco (BATS)