(NewsReady.com) – Howard Schultz’s name is synonymous with Starbucks. He served as CEO of the company from 1986 to 2000. Then, in 2008, he once again took the helm at the coffee chain until 2017. And five years later, in 2022, he began serving as interim CEO. Now, he is out — again.
On March 20, Starbucks announced Laxman Narasimhan had assumed the role of CEO at the company. He’s also joining the board of directors. In September 2022, the company chose Narasimhan to take over for Schultz.
The transition happened two weeks earlier than originally planned and just days before the former interim CEO is scheduled to testify before the Senate. Starbucks is being accused of using illegal tactics to stop employees from unionizing. There’s been an effort to unionize its workers since 2019. The Hill reported that in early March, a judge for the National Labor Relations Board ruled the company committed “egregious and widespread” violations of federal law to stop its employees from unionizing. Schultz will still appear in front of the Senate Committee on Health, Education, Labor and Pensions on March 29. Senator Bernie Sanders (I-VT) chairs the committee.
Comes a day before shareholder meeting and a week before Howard Schultz’s Senate grilling
— Josh Eidelson (@josheidelson) March 22, 2023
Narasimhan has spent the last several months traveling to work at stores across the world, working at more than 30 stores, support centers, and plants. He even earned his barista certification.
Independent Starbucks Board of Directors Chair Mellody Hobson thanked Schultz for “selflessly picking up the leadership mantle when asked.” She said that he did not take compensation while he was serving as interim chair.
Narasimhan said that he is “humbled” to take over as Starbucks CEO. He expressed gratitude to Schultz for his success within the company and said he is “honored to have the opportunity to build on this deep heritage.” The new CEO expressed excitement to work with the company’s partners and move toward a profitable future.
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