STARBUCKS CORP (Form: 8-K, Received: 09/01/2022 17:23:48)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 31, 2022

Starbucks Corporation

(Exact name of registrant as specified in its charter)

LOGO


Washington	000-20322	91-1325671
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

2401 Utah Avenue South, Seattle, Washington 98134

(Address of principal executive offices) (Zip Code)

(206) 447-1575

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title

Trading
Symbol

Name of each exchange

on which registered

Common Stock, par value $0.001 per share

SBUX

Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Selection 13(a) of the Exchange Act ☐

Item 5.02

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On August 31, 2022, the Board of Directors (the “Board”) of Starbucks Corporation (the “Company” or “Starbucks”) approved the appointment of Laxman Narasimhan as chief executive officer-elect of the Company, reporting to our interim chief executive officer. In connection with the appointment, Mr. Narasimhan received an offer letter, which includes a statement of employment terms that Mr. Narasimhan and the Company executed on September 1, 2022 (the “Offer Letter”).

Mr. Narasimhan will serve as an executive officer of the Company beginning on his start date, which is expected to be October 1, 2022. The Offer Letter provides that on or before April 1, 2023, Mr. Narasimhan will be appointed chief executive officer of the Company, reporting to the Board. Upon elevation to chief executive officer, Mr. Narasimhan will also be appointed to the Board and will be nominated for election to the Board at the following meetings of Company shareholders.

Mr. Narasimhan, age 55, currently serves as Chief Executive Officer of Reckitt Benckiser Group Plc (“Reckitt”), a FTSE 12 listed British multinational consumer health, hygiene and nutrition company. He has served in this role since September 2019. Prior to joining Reckitt, Mr. Narasimhan held various roles at PepsiCo from 2012 to 2019. He served as PepsiCo’s Group Chief Commercial Officer until July 2019, and prior to that beginning in 2012 served as Chief Executive Officer - Latin America, Europe and Sub-Saharan Africa, Chief Executive Officer - Latin America, and Chief Financial Officer of PepsiCo Americas Foods. Prior to joining PepsiCo, Mr. Narasimhan spent 19 years at McKinsey & Company, where he focused on its consumer, retail and technology practices in the U.S., Asia and India. Mr. Narasimhan is a trustee of the Brookings Institution and a member of the Council on Foreign Relations. Mr. Narasimhan holds a degree in Mechanical Engineering from the College of Engineering, University of Pune, India. He has an MA in German and International Studies from The Lauder Institute at The University of Pennsylvania and an MBA in Finance from The Wharton School of The University of Pennsylvania.

During Mr. Narasimhan’s employment with the Company, he will receive an initial base salary of $1,300,000 per year, and an annual cash incentive target opportunity equal to 200% of base salary. Commencing in the Company’s fiscal year 2023, Mr. Narasimhan will be eligible to receive annual equity awards with a target value of $13,600,000, pursuant to the terms of the Company’s shareholder approved equity plans.

In connection with his appointment as chief executive officer-elect, Mr. Narasimhan will receive a cash signing bonus of $1,600,000, in consideration for cash incentive opportunities that are being forfeited from his current employer. Mr. Narasimhan will also receive a replacement equity grant with a target value of $9,250,000 in respect of certain equity awards of his current employer that will be forfeited upon his joining the Company. The replacement grant will consist of 60% performance-based restricted stock units (“PRSUs”) and 40% time-based restricted stock units (“RSUs”).

Upon certain qualifying terminations, or if Mr. Narasimhan is not appointed chief executive officer of the Company by April 1, 2023 (or later mutually agreed upon date) and he resigns from employment with the Company in April 2023, then he will receive $7,800,000 and a pro-rata portion of his fiscal year 2023 annual incentive target opportunity, subject to execution of a release of claims against the Company. Following April 1, 2023, Mr. Narasimhan is expected to participate in any generally applicable severance plan.

If the Company determines that Mr. Narasimhan will not commence employment with the Company on the start date, other than due to his Misconduct, he will receive the severance payments described above and $9,250,000 in lieu of the replacement equity grant. On certain voluntary terminations occurring within twelve months of the start date, Mr. Narasimhan will be required to repay the Company the cash signing bonus on an after-tax basis and he will forfeit the replacement equity grant and any other equity-based grants.

Mr. Narasimhan will also be subject to the Company’s restrictive covenants agreement, which includes restrictions relating to noncompetition and non-solicitation for eighteen months after the termination date and protection of confidential information. Mr. Narasimhan will be eligible to participate in the employee benefit plans and programs provided by the Company to other senior executives, will be reimbursed up to fifty thousand dollars for legal fees incurred in relation to entry into the Offer Letter, and will be eligible to use Company aircraft for business-related travel in accordance with the Company’s travel policy. Mr. Narasimhan will be covered by any Company indemnification policy and D&O insurance policies.

The description of the Offer Letter in this Item 5.02 is qualified in its entirety by reference to the full text of the Offer Letter, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

There is no arrangement or understanding between Mr. Narasimhan and any other person pursuant to which Mr. Narasimhan was selected as an officer or director. There are no family relationships between Mr. Narasimhan and any of our directors or executive officers. Mr. Narasimhan has not had an interest in any transaction since the beginning of the Company’s last fiscal year, or any currently proposed transaction, that requires disclosure pursuant to Item 404(a) of Regulation S-K.

Item 7.01

Regulation FD Disclosure

A copy of the Company’s press release relating to the announcement described in Item 5.02, dated September 1, 2022, is furnished as Exhibit 99.1 to this Form 8-K.

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.		Description

10.1		Offer Letter dated September 1, 2022.

99.1		Press release dated September 1, 2022.

104		Cover Page Interactive Data File (formatted as inline XBRL)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	STARBUCKS CORPORATION
Dated: September 1, 2022

	By:	/s/ Zabrina Jenkins
		Zabrina Jenkins
		acting executive vice president and general counsel

Exhibit 10.1

LOGO

September 1, 2022

Laxman Narasimhan

Via electronic mail

Dear Laxman,

On behalf of the Board of Directors of Starbucks Corporation, it is my pleasure to offer you the position of chief executive officer-elect (ceo-elect) of Starbucks Corporation, effective upon your start date, which is expected to be October 1, 2022.

In your capacity as ceo-elect, you will report directly to the interim chief executive officer of Starbucks and will have all the duties and obligations commensurate with your position. On or before April 1, 2023, you will be appointed to the role of chief executive officer of Starbucks, reporting to the Board of Directors. Upon your elevation to chief executive officer, you will be appointed to the Board of Directors and you will be nominated for election to the Board of Directors at the following meetings of our shareholders.

The principal terms and conditions of your offer are set forth in the Annex attached to this letter, provided that your payroll and benefits may be provided through a subsidiary. In addition, your employment will be subject to the following guidelines.

Stock Ownership

As a senior executive, our executive stock ownership guidelines will apply to you. The guidelines require covered executives to achieve a minimum investment in Starbucks Corporation stock within five years of becoming subject to the guidelines (i.e., your start date). Your minimum required ownership level will be six times your annual base salary. A copy of the guidelines will be provided to you.

Executive Life Insurance

As an executive, you and your family have a greater exposure to financial loss resulting from your death. Starbucks recognizes this exposure and has provided for coverage greater than outlined in Your Special Blend. You will receive partner life insurance coverage equal to three (3) times your annualized base salary, paid for by Starbucks. You may purchase up to an additional two (2) times your annualized base salary (for a total of five (5) times salary) up to a maximum life insurance benefit of $2,000,000.

Executive Physical Exam

You are eligible to participate in Starbucks’ executive physical program. Information about the program and our program provider will be emailed to you (new participants are notified at the beginning of each calendar quarter). The program provider will contact you shortly thereafter to establish an appointment. If you have questions about this physical, please consult your Partner Resources contact.

Insider Trading

You will be prohibited from trading Starbucks’ securities (or, in some circumstances, the securities of companies doing business with Starbucks) from time to time in accordance with our Insider Trading Policy and Blackout Procedures. A copy of the policy will be provided to you on your first day and you will be required to sign a certificate that you have read and understood the policy.

Coffee and Dairy Hedging Policy

As an officer of Starbucks, you are prohibited from trading in coffee or dairy futures, options or similar instruments for your own account. If you have further questions, please consult your Partner Resources contact.

Restrictive Covenants Agreement

Your employment is contingent on you executing and complying with our Confidentiality, Non-Solicitation and Non-Competition Agreement, with such additional terms as described in the Annex, which is being provided to you concurrently with this letter.

In order to accept this offer of employment, please execute the attached Annex and the Confidentiality, Non-Solicitation and Non-Competition Agreement and return each to us within two (2) business days.

On behalf of Starbucks and the entire team, I congratulate you and wish you the best in your new role. We look forward to a successful partnership.

Warm regards,

/s/ Mellody Hobson

Mellody Hobson

Independent Starbucks Board of Directors chair

Enc.	Confidentiality, Non-Solicitation and Non-Competition Agreement

Coffee Hedging Policy

ANNEX

STARBUCKS CORPORATION

MANAGEMENT COMPENSATION AND EMPLOYMENT

KEY TERMS

September 1, 2022

This binding statement of key terms (this “Term Sheet”) sets forth the principal terms and conditions, including title and compensation, of your proposed employment by Starbucks Corporation (the “Company”). Upon commencement of employment, you shall also be subject to the terms and conditions of the Company’s policies that are generally applicable to its senior executives, as in effect from time to time.


Start Date and Title:		October 1, 2022 (the “Start Date”) – chief executive officer-elect of the Company reporting to the interim chief executive officer of the Company, with duties and obligations commensurate with your position. On or before April 1, 2023 – chief executive officer of the Company (the “ceo”) reporting to the Board of Directors of the Company. Upon your elevation to ceo you will be appointed to the Board of Directors of the Company and you will be nominated for election to the Board of Directors at the following meetings of shareholders.

Base Salary:		Your base salary will be one-million-three-hundred-thousand-dollars ($1,300,000) per annum, pro-rated for any partial year based on actual days of employment. Your base salary will be reviewed annually in accordance with the Company’s policy for the review of the compensation of senior officers and may be increased in the discretion of the Board from time to time. Base salary may not be decreased without your express written consent unless the decrease is pursuant to (and consistent in percentage reduction with) a general compensation reduction applicable to all, or substantially all, executive officers of the Company. Base salary will be paid in accordance with the Company’s normal payroll practices as in effect from time to time.

Annual Incentive:		You will be eligible for an annual cash bonus opportunity at a target of 200% of your base salary and a maximum of 400% of base salary, subject to continued service and performance in accordance with the Company’s Executive Management Bonus Plan (or any successor arrangements).

FY2023 LTIP:		Commencing in FY2023, you will be eligible for annual equity awards (on a fiscal year basis) with a target grant date fair value of thirteen-million-six-hundred-thousand-dollars ($13,600,000), pursuant to the terms of the Company’s 2005 Long-Term Equity Incentive Plan, as amended and restated (the “LTIP”) (or successor arrangements) and applicable award agreements. For your information, for our NEOs in FY2022, 60% of the target grant value was delivered in performance-based RSUs (“PRSUs”) and 40% of the target grant value was delivered in time-based RSUs (“RSUs”).



Relocation		Within a reasonable period of time following your Start Date, you agree to relocate to Seattle, WA for the duration of your employment with the Company, unless otherwise agreed to in writing and approved by the Board. You will be eligible for reimbursement for qualified relocation expenses to Seattle, WA, including gross-up for related tax implications, pursuant to the Company’s relocation policy.

Signing Bonus:		You will receive a one-million-six-hundred-thousand-dollar ($1,600,000) cash signing bonus (the “Signing Bonus”), in consideration for cash incentive opportunities that you are forfeiting by leaving your current employer, paid as part of the first payroll following your start date.

Replacement Grant:		You will receive a grant of Company equity in consideration of equity that you are forfeiting by leaving your current employer. The grant date fair value of this equity grant is nine-million-two-hundred-fifty-thousand-dollars ($9,250,000) (the “Replacement Grant”). The Replacement Grant will be delivered 60% in PRSUs and 40% in RSUs, pursuant to the terms of the LTIP and applicable award agreements. In order to provide alignment with the other members of the Company’s Leadership Team, 50% of the PRSUs will provide for participation in the Company’s in-progress FY 2021-2023 PRSU cycle, 25% of the PRSUs will provide for participation in the FY 2022-2024 PRSU cycle and 25% of the PRSUs will provide for participation in the FY 2023-2025 PRSU cycle (the FY 2023-2025 cycle awards only, the “2023 Replacement PRSUs”). These PRSUs will be eligible to be earned upon completion of FY2023, FY 2024 and FY2025, respectively, based on the metrics previously approved under the LTIP for the applicable 2021-2023 and 2022-2024 cycle and as to be approved for the 2023-2025 cycle, provided that you remain employed by the Company and have not given or received notice of termination as of the date that PRSUs are eligible to vest in accordance with the LTIP and applicable award agreement. The RSUs will vest ratably over three years, with one-third of the award vesting on each of the first, second, and third anniversaries of the Start Date, provided that you remain employed with the Company through the applicable vesting dates and have not given or received notice of termination as of such dates. Except for the 2023 Replacement PRSUs, you will receive the Replacement Grant on the Start Date and the actual number of PRSUs and RSUs granted as your Replacement Grant shall be determined using the closing price of the Company’s common stock on the Start Date (or next trading day if the Start Date does not fall on a NASDAQ trading day) pursuant to typical Company grant practices. The 2023 Replacement PRSUs will be granted at the time grants are made to other executives for the FY 2023 cycle, anticipated to be in November 2023, and the number of applicable PRSUs shall be determined using the closing price of the Company’s common stock on the grant date (or the next trading day if the grant date does not fall on a NASDAQ trading day) pursuant to typical Company grant practices.

Termination:

Although we hope that your employment with us is mutually satisfactory, please note that your employment at the Company is “at will.” This means that you may resign from the Company at any time for any reason, and the Company has the right to terminate your employment relationship for any reason or no reason at any time.

In the event that (i) your employment is terminated by the Company without “Misconduct” (as defined below) prior to April 1, 2023 (or such later date that you become a participant in any executive severance plan that may be adopted by the Company), or (ii) if you have not been appointed as ceo of the Company by April 1, 2023 (or such later date as may be agreed to by you and the Company) (“Initial Good Reason”), and you terminate your employment with the Company in April 2023, you will receive severance pay equal to seven-million-eight-hundred-thousand-dollars ($7,800,000) (i.e., two times the sum of your base salary and target bonus at the rate in effect on your start date), payable in equal monthly installments over a period of 24 months. Upon a qualifying termination as set forth above, you will receive a pro-rata portion of your target FY2023 annual incentive opportunity based on the number of days in FY2023 that you were employed with the Company. Your right to severance and pro-rata incentive is contingent upon your signing and not revoking a general release of all claims against the Company, in the form to be utilized in connection with any executive severance plan that may be adopted by the Company (or if none, as provided by the Company).

Following April 1, 2023, you will participate in any executive severance plan that may be adopted by the Company, which shall have terms no less favorable to you than the severance terms described herein.

Upon any termination of employment, you will be entitled to your accrued but unpaid salary through the end of the last week in which you worked, all unused vacation days in the fiscal year of termination, any vested benefits provided upon termination of employment under any of the Company’s benefit plans (other than any severance plans), reimbursement of all business expenses properly incurred prior to termination in accordance with Company policy, and any annual bonus earned with respect to performance in the year prior to termination but not yet paid as of the date of termination.

You will have no obligation to mitigate the Company’s obligations to you arising from the termination of your employment, and no amounts payable to you by the Company shall be subject to offset for any compensation to which you may become entitled from any other source after your employment with the Company terminates.



Definition of “Misconduct”		For purposes of this term sheet, “Misconduct” has the meaning set forth in the Company’s 2005 Long-Term Equity Incentive Plan, as amended and restated March 16, 2022.

Effect of Termination Upon Equity Grants:		Notwithstanding any provisions of any equity plan, severance plan or standard form of grant agreement: If your employment is terminated by the Company without Misconduct at any time (or, if you then participate in any executive severance plan that may be adopted by the Company, you terminate for “Good Reason” in connection with a Change in Control, as defined in any such executive severance plan) or you terminate employment for Initial Good Reason in April 2023, subject to your execution of the release described above, your Replacement Grant RSUs will vest in full and your FY 2023 LTIP award granted to you as time-vested RSUs will vest in full, in each case settled within sixty days after the date of termination, and your Replacement Grant PSUs will be eligible to vest in full in accordance with the original performance conditions of such PSUs with the number of earned PSUs based on actual performance following the end of the performance period. Except as provided above or in the “Recoupment” section below, your FY2023 LTIP award and subsequent equity awards will be treated subject to their terms as generally applicable to senior executives and any executive severance plan that may be adopted by the Company, if applicable.

Termination Prior to Start Date		In the event that, following execution of the Agreement and following approval by the Board of Directors, the Company determines before the Start Date that you will not become employed by the Company on the terms set forth herein (other than due to your Misconduct), you will be entitled to the severance benefits set forth in “Termination” above beginning from the date of such determination, except that the amount of such benefits will be increased by $9,250,000 (the grant date fair value of the Replacement Grant).

Recoupment		In the event that you terminate your employment with the Company within twelve months of the Start Date, other than for Initial Good Reason (or, if you then participate in any executive severance plan that may be adopted by the Company, “Good Reason” as defined therein) you will be required to repay the Company the Signing Bonus, on an after-tax basis, and you will forfeit the Replacement Award and any other equity-based grants awarded to you by the Company in FY2022 and FY2023 and no severance payments or benefits will be payable to you upon such termination.

Restrictive Covenants		Your employment is subject to your signing and complying with the Company’s restrictive covenants agreement, which includes restrictions relating to noncompetition, non-solicitation and confidential information, provided that the noncompetition restrictions will not include employment by or ownership of a private equity investment firm that does not invest in any company with 5% or more of its consolidated annual revenue attributable to the direct or indirect sale of coffee (whether by production, distribution, wholesale, retail or food service sales, or a combination thereof).



		You warrant and represent that you are not subject to any covenants or obligations that could interfere with your employment with the Company, except as disclosed in writing to the Company.

Reimbursement of Business Expenses		You will be reimbursed by the Company for all business expenses incurred in accordance with Company policy.

Retirement, Medical, Insurance and Other Benefits:		You will be eligible to participate in the employee benefits plans and programs provided by the Company to other senior executives, as in effect from time to time.

Aircraft		You will be eligible to use the Company aircraft for business-related travel in accordance with the Company’s travel policy.

Legal Fees:		The Company shall reimburse you up to fifty-thousand-dollars ($50,000) in reasonable legal and advisory fees and expenses incurred in connection with your entering into this Agreement.

Taxation		Notwithstanding anything in this Term Sheet or any other plan, arrangement or agreement to the contrary: All payments and benefits under this Term Sheet or otherwise provided to you by the Company may be subject to applicable tax withholding by the Company, and the Company may withhold from such amounts payable or benefits to be provided to you up to the maximum allowable withholding, including in respect of employment taxes. In the event that any payment or benefit received or to be received by you (whether pursuant to this Term Sheet or any other plan, arrangement or agreement) (all such payments and benefits, the “Total Payments”) would fail to be deductible under Section 280G of the Internal Revenue Code (“280G”) or otherwise would be subject (in whole or part) to the excise tax imposed by Section 4999 of the Internal Revenue Code (the “Excise Tax”) then, the payments or benefits to be received by you that are subject to 280G shall be reduced to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments) is greater than or equal to the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income and employment taxes on such Total Payments and the amount of Excise Tax to which you would be subject in respect of such unreduced Total Payments).


		The payments and benefits in this term sheet are intended to be exempt from or comply with Section 409A of the U.S. Internal Revenue Code (“409A”). Each such payment and benefit that is payable in installments shall be construed as a separate identified payment for purposes of 409A. You will not be considered to have terminated employment with the Company for purposes of any payments or benefits in connection with termination which are subject to 409A until you have incurred a “separation from service” within the meaning of Section 409A. If you terminate employment, to the extent necessary to avoid accelerated taxation and / or tax penalties under 409A, any payments and benefits in this Term Sheet that are payable within the six-month period following your termination date will instead be paid on the first business day following the six month anniversary of your termination date (or if earlier, the date of death). To the extent required to avoid accelerated taxation and / or tax penalties under 409A, amounts reimbursable to you will be paid to you on or before the last day of the year following the year the expense was incurred and the amount of expenses for reimbursement (and in-kind benefits) during one year may not affect amounts reimbursable or provided in any subsequent year. If your termination date occurs after November 1 of a given calendar year, any severance payments provided in this Term Sheet will be paid (or commence to be paid) in January of the following calendar year. The Company makes no representation that any or all of the payments and benefits described in this Term Sheet will be exempt from or comply with 409A.

Indemnity; D&O Insurance		You will be subject to and covered by any indemnification policy, by-law, agreement or procedure maintained by the Company at all times during and following your employment and shall be a named insured under the Company’s D&O policies.

Governing Law		State of Washington

[Signature Page Follows]

By the signatures of the parties below, which may be in counterparts, this Term Sheet shall be effective as of the date first set forth above.

STARBUCKS CORPORATION

/s/ Mellody Hobson

Mellody Hobson

Independent Starbucks Board of Directors chair

EXECUTIVE

/s/ Laxman Narasimhan

Laxman Narasimhan

Exhibit 99.1

Starbucks Names Laxman Narasimhan as Next Chief Executive Officer

Howard Schultz will continue as interim ceo until April 1, 2023 and serve as an advisor to Narasimhan through calendar 2023 while remaining on Starbucks Board of Directors.

SEATTLE (September 1, 2022) – Starbucks (NASDAQ: SBUX) today announced that Laxman Narasimhan will become the company’s next chief executive officer and a member of the Starbucks Board of Directors. Narasimhan will join Starbucks as incoming ceo on October 1, 2022 after relocating from London to the Seattle area and will work closely with Howard Schultz, interim ceo, before assuming the ceo role and joining the Board on April 1, 2023.

Narasimhan brings nearly 30 years of experience leading and advising global consumer-facing brands. Known for his considerable operational expertise, he has a proven track record in developing purpose-led brands. Building on companies’ histories, he has succeeded in rallying talent to deliver on future ambitions by driving consumer-centric and digital innovations. Most recently, he served as chief executive officer of Reckitt, a FTSE-12 listed multinational consumer health, hygiene and nutrition company, where he led the company through a major strategic transformation and a return to sustainable growth.

“Laxman is an inspiring leader. His deep, hands-on experience driving strategic transformations at global consumer-facing businesses makes him the ideal choice to accelerate Starbucks growth and capture the opportunities ahead of us. His understanding of our culture and values, coupled with his expertise as a brand builder, innovation champion, and operational leader will be true differentiators as we position Starbucks for the next 50 years, generating value for all our stakeholders. On behalf of the entire Board, I am thrilled to welcome Laxman as Starbucks next ceo,” said Mellody Hobson, Independent Starbucks Board of Directors chair.

During the transition period, Narasimhan will be fully immersed in the company, spending time with Schultz and the management team, partners and customers and gaining in-depth exposure to the brand, company culture, and Reinvention plan. This will initially include Starbucks store immersions, visiting manufacturing plants and coffee farms, connecting with partners around the globe as well as Starbucks long term business partners.

Schultz will remain in the role of interim ceo during this transition period, following which he will continue as a member of the Starbucks Board of Directors. He will remain closely involved with the company’s Reinvention and act as an ongoing advisor to Narasimhan.

“When I learned about Laxman’s desire to relocate, it became apparent that he is the right leader to take Starbucks into its next chapter. He is uniquely positioned to shape this work and lead the company forward with his partner-centered approach and demonstrated track record of building capabilities and driving growth in both mature and emerging markets. As I have 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. The perspectives he brings will be a strong asset as we build on our heritage in this new era of greater well-being. I greatly look forward to our partnership over the coming months and years,” said Schultz.

“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,” said Narasimhan. “I look forward to working closely with Howard, the Board, and the entire leadership team – and to listening and learning from Starbucks partners – as we collectively build on this work to lead the company into its next chapter of growth and impact.”

Previously, Narasimhan held various leadership roles at PepsiCo, including as global chief commercial officer, where he was responsible for the company’s long-term strategy and digital capabilities. He also served as ceo of the company’s Latin America, Europe and Sub-Saharan Africa operations, and previously as the ceo of PepsiCo Latin America, and the cfo of PepsiCo Americas Foods. Prior to PepsiCo, Narasimhan was a senior partner at McKinsey & Company, where he focused on its consumer, retail and technology practices in the U.S., Asia and India and led the firm’s thinking on the future of retail.

Narasimhan is also a trustee of the Brookings Institution, a member of the Council on Foreign Relations, served as a member of the UK Prime Minister’s Build Back Better Council, and is a member of Verizon’s Board of Directors. He holds a degree in Mechanical Engineering from the College of Engineering, University of Pune, India. He has an MA in German and International Studies from The Lauder Institute at The University of Pennsylvania and an MBA in Finance from The Wharton School of The University of Pennsylvania.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 34,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or www.starbucks.com.

Media contact

Maggie Jantzen

206-318-7100

press@starbucks.com