Ajit Karn
Mr. Laxman Narasimhan Takes Over As Starbucks CEO
New York: Monday marked the official start of Laxman Narasimhan’s tenure as CEO of global coffee giant Starbucks, bringing the number of Indian-origin business executives at the forefront of multinational corporations to an all-time high.
In September of 2012, Starbucks announced that Mr. Narasimhan would become the company’s next chief executive officer and a board member.
Following a global search for a successor to company founder and now-former CEO Howard Schultz, Narasimhan joined Starbucks on October 1, 2022 as its incoming CEO after relocating to the Seattle area from London.
Starbucks said in a statement, “Effective immediately, Laxman Narasimhan has assumed the role of chief executive officer and will join the company’s board of directors.”
On March 23, Laxman Narasimhan will preside over the Starbucks Annual Shareholder Meeting.
“As he ascends into the position, Narasimhan will continue to engage the leadership team, share his early learnings and insights, and evaluate opportunities for the company as they chart a course forward,” the company said.
Mr. Narasimhan, the former CEO of the UK-based consumer health, hygiene, and nutrition multinational Reckitt Benckiser, brings nearly three decades of experience leading global consumer products businesses and advising retail, grocery, restaurant, and e-commerce companies to Starbucks.
During the past five months, according to the company, he has participated in a unique immersion experience, travelling to work with employees in over 30 stores, manufacturing facilities, and support centres around the world while “earning his barista certification.”
Mr. Narasimhan was quoted in a company statement as saying, “I am humbled to officially assume my role as Starbucks chief executive officer, leading our incredible team of more than 450,000 green apron partners around the world.”
He stated that Schultz’s accomplishment of “building from inception an iconic global brand fueled by an enduring passion to elevate humanity” is truly remarkable, adding, “I am honoured to have the chance to expand on this rich legacy.
“As a human connection business, we have limitless opportunities to deliver for our partners, consumers, investors, and communities with each cup and connection. I am thrilled to collaborate with our global allies to unleash Starbucks’ limitless future.” Narasimhan joined a growing list of Indian-origin CEOs at the helm of global titans, including Microsoft CEO Satya Nadella, Adobe CEO Shantanu Narayen, Alphabet CEO Sundar Pichai, and IBM Chairman and CEO Arvind Krishna. Prior to 2018, Indra Nooyi had served as PepsiCo’s chief executive officer for twelve years.
Former Mastercard CEO Ajay Banga was nominated to lead the World Bank by Vice President Joe Biden last month.
Mr. Narasimhan possesses a degree in Mechanical Engineering from the University of Pune’s College of Engineering.
In addition, he holds a Master of Arts in German and International Studies from The Lauder Institute at The University of Pennsylvania as well as a Master of Business Administration in Finance from The Wharton School of The University of Pennsylvania.
Starbucks stated that it has unveiled a company-wide reinvention strategy and continues to invest more than $1 billion in retail partners and stores for prioritised areas including increased pay and sick time accrual, new financial well-being benefits, modernised training and collaboration, store innovation and equipment, and the celebration of coffee.
Mellody Hobson, chair of the independent Starbucks Board of Directors, said in a statement that Narasimhan’s “intensive immersion” into the business and his extensive experience as a brand builder, innovator, and operator uniquely prepared him to lead Starbucks into its next phase of growth.
This immersion has increased Laxman’s comprehension of the culture and values of Starbucks. Ms. Hobson stated that during this time of learning and listening, he has already gained the hearts and minds of our international partners.
Mr. Narasimhan has previously served as an executive in numerous leadership positions at PepsiCo, including as the company’s global chief commercial officer, where he was responsible for its long-term development strategy and commercial capabilities.
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Before joining PepsiCo, he spent 19 years at McKinsey & Company, where he advised companies in the US, Asia, and India in the retail, consumer goods, and healthcare industries.
According to the Starbucks website, he is a trustee of the Brookings Institution, a member of the Council on Foreign Relations, a member of the UK Prime Minister’s Build Back Better Council, and a member of Verizon’s Board of Directors.
