Starbucks picks Laxman Narasimhan as next CEO with $1.3-million annual package

Global coffee giant Starbucks has named Indian-origin Laxman Narasimhan as its next chief executive officer, replacing Howard Schultz, who will continue as the company’s interim chief until April 2023. Narasimhan is required to begin on October 1 2022 by relocating from London to Seattle, where the company is headquartered.

The 55-year-old has earlier served as the chief executive of Lysol and Enfamil baby formula, the UK-based Reckitt Benckiser Group Plc. Schultz mentions that has now been “uniquely positioned” to head the Starbucks firm. “As I had the opportunity to get to know him, it has become clear that he shares our passion of investing in humanity and in our commitment to our partners, customers and communities,” he said in a statement.

Narasimhan will draw $1.3 million as his annual base salary, as mentioned by a regulatory filing. He will also receive $1.5 million cash signing bonus as well as a replacement equity grant with a target value of $9.25 million, to make up for the incentives he will be forfeiting by bidding adieu to  Reckitt Benckiser. Starting in the fiscal year 2023, he will also be eligible for annual equity awards equating to $13.6 million.

“Starbucks' commitment to uplift humanity through connection and compassion has long distinguished the company, building an unrivaled, globally admired brand that has transformed the way we connect over coffee. I am humbled to be joining this iconic company at such a pivotal time, as the reinvention and investments in the partner and customer experiences position us to meet the changing demands we face today and set us up for an even stronger future,” Narasimhan said.