Starbucks will pay CEOs millions in 2022 to work only a quarter of the year. Yet, the company’s interim CEO, who oversaw the revamp, paid $1.
According to federal securities filings, Starbucks’ interim CEO Howard Schultz received a symbolic pay of $1 to take over and revamp the company’s operations.
But his replacement received $8.8 million in bonuses to accept the job. Laxman Narasimhan received a $1.6 million sign-on prize and $7.2 million in stock awards. He was named “CEO elect” in October and will assume a full-time position later this year.
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Millions were given to executives who worked for Starbucks for only a portion of the year due to the complicated CEO turnover that occurred last year. Kevin Johnson received a salary and stock awards totaling $16.7 million when he left his position as CEO in March.
In September, Narasimhan was chosen as Schultz’s replacement. Before officially taking over the full-time position on April 1, one year following Schultz’s return, the former CEO of Reckitt would spend several months working under Schultz as CEO elect.
These roles sometimes come with sign-on bonuses, and board directors frequently offer new CEOs and other top executives stock awards to encourage them to raise the share price.
Who is Laxman Narasimhan?
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Like many Indian-origin leaders, Laxman Narasimhan is another example who makes India proud.
Laxman Narasimhan is an indian-american business executive born on May 15, 1967. before being appointed as CEO of Starbucks, he has worked in companies like PepsiCo and Reckitt. He has lived in Pune. He is married and has two children.
6 surprising facts about Laxam Narasimhan you didn’t know
Here are six facts about the new CEO of a coffee giant around the world-STARBUCKS-
- Laxman has over 30 years of experience in the restaurant, e-commerce, business and retail industries, which makes him the best choice.
- The Indian-origin CEO was previously the CEO of RECKITT, a multinational hygiene, nutrition and consumer health company. He worked incredibly during a pandemic, came up with new initiatives and launched new programs during his term.
- Laxman Narasimhan also had various executive ranks at PepsiCo. He served as the company’s CEO of PepsiCo’s Europe, Latin America, and Sub-Saharan Africa operations, as a global chief commercial officer, as CFO of PepsiCo Americas Foods and also as CEO of PepsiCo Latin America.
- He has also worked for 19 years at McKinsey & Company. He also served as an adviser to various companies in the industry of healthcare, consumer products, hygiene and retail.
- His qualification includes a Master of Arts in German and International Studies from the Lauder Institute, The University of Pennsylvania, a degree in Mechanical Engineering from Pune university, and an MBA degree in Finance from The Wharton School of The University of Pennsylvania.
- He is fluent in six languages and serves as a trustee, a member of Verizon’s Board of Directors, Brookings Institution, and as UK Prime Minister’s Build Back Better Council.
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Controversies involve the new CEO of Starbucks.
You might be thinking that Laxman, who had an approach of a servant-leadership style throughout as career, might have had a few challenges, but it’s not true. He attempted to initiate projects for the local community to improve health and hygiene and tried to maintain sustainability in every operation he was part of. Yet there were times he had to face and go through a difficult time as a leader.
There are some abrupt scandals that came to light while he was leading. The oxy co. A local unit of Reckitt. In 2011 four pregnant women died of lung problems. After heading Reckitt for three years, Laxman resigned from the position to bag a new job in the new company in the US.
In spite of many challenges, Laxman still continues to be a great leader like many others of Indian origin in foreign countries.
Also, read why Starbucks choose Laxman Narasimhan.