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Starbucks has replaced its current CEO Laxman Narasimhan with Chipotle Mexican Grill chief Brian Niccol in an executive shake-up spurred by ongoing negotiations with activist investors concerned about slumping sales, The Wall Street Journal reported.
The Seattle-based coffee chain’s current executive chairwoman, soon to be independent director, told the Journal that discussions about a leadership change began roughly two months ago, and that the decision to appoint Niccol was made by Starbucks’ board, with former CEO Howard Schultz also involved.
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Shultz remains deeply “entangled” in the company he ran for much of the past four decades, Semafor’s Liz Hoffman previously reported: He remains its sixth-largest shareholder and chairman emeritus for life, and owns a 19% stake in a Sicilian plantation from which Starbucks buys all its olive oil.
Earlier this year, Schultz publicly criticized Starbucks’ leadership for its “fall from grace,” Hoffman reported, and suggested they had neglected the “customer experience,” Schultz’s obsession during his three stints as CEO.