Published - March 21, 2023 @ 10:29 AM (EET)

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On Monday, Starbucks Corp. (NASDAQ:SBUX) said it handed the reins to its incoming chief executive officer, Laxman Narasimhan, nearly two weeks earlier than expected.

Interim CEO and longtime leader Howard Schultz exited the role Monday, the world's largest coffee chain said, with his successor officially taking over and joining the company's board, the company said.

Narasimham, 55, began working at the Seattle-based company in October, spending the last few months learning the company's culture and operations at more than 30 stores, manufacturing, and support facilities. He also earned a barista certification.

Company founder Schultz, who had served as interim CEO for the last time, said Monday in a letter to Narasimhan and other company leaders that Starbucks was his life's work and that he has entrusted them to lead the chain forward.

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“Today, I am entrusting you all with Starbucks – something that holds a place in my heart second only to that of my beloved family,” Schultz wrote in a letter to company leadership.

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WHY IT MATTERS

The leadership transition at Starbucks comes as executives and shareholders are set to address contentious matters facing the coffee chain. 

Starbucks has faced a growing union push at some of its US stores, a movement that started in 2019. During the company's annual shareholder meeting Thursday, which Narasimhan will lead for the first time, investors will discuss several proposals about the chain's governance and management, including its response to the unionization drive.

Moreover, despite stepping down earlier than anticipated, Schultz is still expected to testify in front of a Senate panel on March 29 about the coffee chain's alleged union-busting activity.

Since Schultz returned nearly a year ago after former CEO Kevin Johnson surprised investors by announcing his retirement, Starbucks stock has risen almost 8%, bringing its market value to $113 billion.

Meanwhile, during the same time, the S&P 500 has fallen over 13%.

Bringing nearly 30 years of experience leading global consumer goods businesses and advising retail, grocery, restaurant, and e-commerce companies, Narasimhan said,

"As a human connection business, we have limitless possibilities to deliver for our partners, our customers, our investors, and our communities through every cup and every connection. I am excited to work alongside our partners worldwide to unlock the limitless future of Starbucks."

Starbucks shares closed 1.2% higher at $99.85 in the regular trading session on Monday.

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