Starbucks CEO: We’re Betting on China, Accelerating Share Buybacks
Starbucks Corp. Chief Executive Officer, Kevin Johnson, will step down on April 4, passing the CEO baton to Laxman Narasimhan, head of Reckitt Benckiser Group, who will take over in the fall of 2023.
Howard Schultz will continue as interim CEO during the transition. Johnson has been CEO since 2017. Starbucks shares rose 3.5% in premarket trading.
In a letter to employees, Johnson said he was "incredibly proud" of what the company has accomplished during his tenure, including navigating the challenges of the COVID-19 pandemic.
Narasimhan is a consumer goods industry veteran with more than 30 years of experience. Prior to joining Reckitt Benckiser in 2019, he held leadership positions at PepsiCo Inc. and Mondelez International Inc.
His appointment comes at a time when Starbucks is facing challenges in China, its second-largest market. The company has been hit by COVID-19 lockdowns and a slowing economy in the country.
In an interview with CNBC, Johnson said that Starbucks is "betting on China" and that the company is "very confident" in its long-term prospects there.
He also said that Starbucks is accelerating its share buyback program. The company has authorized a new $20 billion share buyback program, which is in addition to the $40 billion program that was announced in 2021.
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