Plummeting share prices and dropping same-store sales has resulted in the rapid exit of Starbuck’s CEO.
The global coffee shop chain has announced that Laxman Narasimhan is stepping down from his role after less than two years in the role; and his departure is effective immediately.
The new CEO is Brian Niccol, who has been poached from Chipotle Mexican Grill and been given a record sign-on pay package worth up to $113m (£88m). The Guardian reports that this is “one of the largest such executive deals in corporate history” and is “four times larger than that of his predecessor”. The newspaper adds that the new boss will also be allowed to work remotely from his home in California instead of having to relocate to Seattle where Starbucks is headquartered.
In the press statement about the appointment, Mellody Hobson, Starbucks’ new lead independent director, said: “Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth….Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world.”
The Starbucks release sings Niccol’s praises adding that revenue [at Chipotle] “…has nearly doubled, profits have increased nearly sevenfold, and the stock price has increased by nearly 800% during his leadership, all while increasing wages for retail team members, expanding benefits, and strengthening the culture.”
Niccol will take on his new role on 9th September and has negotiated a salary of $1.6m plus the potential to earn up to $23m worth of share-based bonuses annually as well as his cash bonus, which will be tied to the company’s performance.
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