C-Suite Transitions – Laxman Narasimhan Named CEO Of Starbucks

With over 34,948 stores in 80 countries, Starbucks (SBUX) is the world’s largest coffee chain with its headquarters in Seattle, Washington. The company was founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker. Current interim CEO Howard Schultz has been with the company for over four decades and this is his third stint as CEO. Mr. Schultz retired from Starbucks in 2018 but rejoined as interim chief executive officer and a member of the company’s Board of Directors on April 4, 2022, after Kevin Johnson announced his retirement as President and CEO of the company.

On August 2, 2022, Starbucks reported results for the fiscal third quarter that ended July 3, 2022. Net revenues for the North America segment grew 13% year-over-year to $6.1 billion in Q3 FY22. The growth was primarily driven by a 9% increase in company-operated comparable store sales. Operating income increased to $1.33 billion in Q3 FY22, up from $1.3 billion in Q3 FY21.

On September 1, 2022, Starbucks announced that Laxman Narasimhan will become the company’s next Chief Executive Officer and will join Starbucks as incoming CEO on October 1, 2022. He will be replacing Howard Schultz who will continue as interim CEO until April 1, 2023.

Laxman Narasimhan has been serving as Chief Executive Officer of Reckitt Benckiser Group, a multinational Anglo-Dutch consumer goods firm since September 2019. He started significantly transforming Reckitt’s business within months of joining the company. Mr. Narasimhan hired Kris Licht, a top executive from his previous company PepsiCo, to fill the role of Chief Transformation Officer and replaced Reckitt’s CFO.

Laxman held a number of key positions at PepsiCo from 2012 to 2019, including Global Chief Commercial Officer, before joining Reckitt. Before joining PepsiCo, Laxman worked for McKinsey & Company for 19 years in a variety of positions from 1993 to 2012.

Welcome to edition 5 of  C-Suite Transitions, a new weekly series that tracks appointments and departures at publicly traded companies during the prior week. We highlight five appointments and departures each week by picking the largest companies from the full list of management changes.

You can find all the appointments and departures listed below in our  C-Suite Transitions tool.

Appointments

1. Starbucks Corporation (SBUX): $88.31

On September 1st, Starbucks announced that Laxman Narasimhan will become the company’s next chief executive officer and a member of the Starbucks Board of Directors.

Mr. Narasimhan will join Starbucks as incoming CEO on October 1, 2022,  and will work closely with Howard Schultz, interim CEO, before assuming the CEO role and joining the Board on April 1, 2023.

 

MarketCap: $96.98B Avg. Daily Volume (30 days): 5,725,344 Revenue (TTM): $31.98B
Net Income Margin (TTM): 13.03% ROE (TTM): -53.96% Net Debt: $20.65B
P/E: 23.73 Forward P/E: 24.33 EV/EBIDTA (TTM): 18.51
P/S (TTM): 3.03 P/B (TTM): N/A 52 Week Range: $68 – $118.13

2. Truist Financial Corporation (TFC): $47.10

On September 7, 2022, Truist Financial Corporation announced that Michael B. Maguire has been appointed as Chief Financial Officer of Truist, effective as of September 15, 2022. Truist is the seventh largest bank holding company in the U.S. with $529 billion in assets. Truist was created in December 2019 through a merger of equals between BB&T Corporation and SunTrust Banks.

Mr. Maguire, will succeed Daryl N. Bible, who announced in May 2022 that he planned to retire from Truist. Since December 2019, Mr. Maguire has served as Chief Consumer Finance and Payments Officer of Truist.

MarketCap: $61.04B Avg. Daily Volume (30 days): 4,229,113 Revenue (TTM): $22.50B
Net Income Margin (TTM): 27.79% ROE (TTM): 9.52% Net Debt: $8.36B
P/E: 10.43 Forward P/E: 8.35 EV/EBIDTA (TTM): N/A
P/S (TTM): 2.82 P/B (TTM): 1.10 52 Week Range: $44.22 – $67.05

3. Allegro MicroSystems (ALGM): $22.81

On September 1, 2022, the Board of Directors of Allegro MicroSystems, appointed Michael C. Doogue, the company’s Senior Vice President of Technology and Products, to the new role of Senior Vice President, Chief Technology Officer, effective September 1, 2022.

Mr. Doogue has served as Senior Vice President of Technology and Products since 2019, and he has held progressive engineering and executive leadership roles at the company since joining in 1998.

MarketCap: $4.29B Avg. Daily Volume (30 days): 391,911 Revenue (TTM): $798.29M
Net Income Margin (TTM): 12.78% ROE (TTM): 14.77% Net Cash: $247.13M
P/E: 42.49 Forward P/E: 21.37 EV/EBIDTA (TTM): 23.00
P/S (TTM): 5.29 P/B (TTM): 5.52 52 Week Range: $19.20 – $38.28

4. Avnet, Inc.  (AVT): $41.45

On September 6, 2022, Avnet announced that the Avnet Board of Directors appointed Kenneth A. Jacobson to serve as Chief Financial Officer (principal financial officer), effective September 6, 2022.

 

MarketCap: $3.91B Avg. Daily Volume (30 days): 942,525 Revenue (TTM): $24.31B
Net Income Margin (TTM): 2.85% ROE (TTM): 16.73% Net Debt: $1.71B
P/E: N/A Forward P/E: 7.78 EV/EBIDTA (TTM): 5.15
P/S (TTM): 0.18 P/B (TTM): 0.96 52 Week Range: $35.30 – $49.92

5. The Scotts Miracle-Gro Company (SMG): $57.61

On August 31, 2022,  The Scotts Miracle-Gro Company announced that its Board of Directors appointed David C. Evans,  as interim Chief Financial Officer, effective August 30, 2022. The Company is conducting a search process to fill the Chief Financial Officer role on a permanent basis.

Mr. Evans served as Chief Financial Officer of the company from 2006 until 2013 and was named to its Board of Directors in 2018.

 

MarketCap: $3.21B Avg. Daily Volume (30 days): 585,873 Revenue (TTM): $4.17B
Net Income Margin (TTM): -6.37% ROE (TTM): -34.56% Net Debt: $3.73B
P/E: N/A Forward P/E: 13.61 EV/EBIDTA (TTM): 12.40
P/S (TTM): 0.82 P/B (TTM): 8.10 52 Week Range: $55.97 – $176.64

Departures

1. Starbucks Corporation (SBUX): $88.31

Starbucks (SBUX) announced that Laxman Narasimhan will become the company’s next chief executive officer and a member of the Starbucks Board of Directors. Mr. Narasimhan will join Starbucks as incoming CEO on October 1, 2022, and will work with Howard Schultz, interim CEO, before assuming the CEO role and joining the Board on April 1, 2023.

Howard Schultz has been with the company for over four decades serving as Chairman and CEO from 1987 till 2000, 2008 till 2017, and since April 2022.

MarketCap: $96.98B Avg. Daily Volume (30 days): 5,725,344 Revenue (TTM): $31.98B
Net Income Margin (TTM): 13.03% ROE (TTM): -53.96% Net Debt: $20.65B
P/E: 23.73 Forward P/E: 24.33 EV/EBIDTA (TTM): 18.51
P/S (TTM): 3.03 P/B (TTM): N/A 52 Week Range: $68 – $118.13

2. Hartford Financial Services Group  (HIG): $65.75

On September 7, 2022, Douglas Elliot resigned as President of The Hartford Financial Services Group, effective December 31, 2022.

 

 

 

MarketCap: $21B Avg. Daily Volume (30 days): 1,642,462 Revenue (TTM): $22.23B
Net Income Margin (TTM): 9.44% ROE (TTM): 12.92% Net Debt: $1.27B
P/E: -7.55 Forward P/E: 7.79 EV/EBIDTA (TTM): 7.34
P/S (TTM): 1.03 P/B (TTM): 1.51 52 Week Range: $61.23 – $76.85

3. Western Alliance Bancorp (WAL): $74.86

On September 6, 2022, Western Alliance Bancorporation reported that Randall Theisen will retire from his current roles of Chief Legal Officer and Corporate Secretary of the Company and Western Alliance Bank in the first quarter of 2023.

 

MarketCap: $7.82B Avg. Daily Volume (30 days): 487,930 Revenue (TTM): $2.22B
Net Income Margin (TTM): 44.22% ROE (TTM): 21.86% Net Debt: N/A
P/E: 7.91 Forward P/E: 6.29 EV/EBIDTA (TTM): 12.30
P/S (TTM): 3.72 P/B (TTM): 1.64 52 Week Range: $68.11 – $123.34

4. GitLab Inc. (GTLB): $54.16

On September 1, 2022, Eric Johnson, Chief Technology Officer, and Gitlab entered into a Service Continuation Agreement, pursuant to which Johnson will resign from his position effective October 1, 2022.

 

 

MarketCap: $7.05B Avg. Daily Volume (30 days): 1,668,732 Revenue (TTM): $333.04M
Net Income Margin (TTM): -52.84% ROE (TTM): -30.81% Net Cash: $970.89M
P/E: -34.95 Forward P/E: N/A EV/EBIDTA (TTM): -34.82
P/S (TTM): 24.12 P/B (TTM): 8.95 52 Week Range: $30.74 – $137

5. DENTSPLY SIRONA Inc.  (XRAY): $31.92

On September 1, 2022, DENTSPLY SIRONA and Walter Petersohn, the company’s Senior Vice President, Chief Commercial Officer, mutually agreed to the  separation of Petersohn from DENTSPLY SIRONA, effective September 30, 2022.

 

MarketCap: $6.69B Avg. Daily Volume (30 days): 1,969,117 Revenue (TTM): $4.19B
Net Income Margin (TTM): 8.81% ROE (TTM): 7.50% Net Debt: $2B
P/E: -50.40 Forward P/E: 11.53 EV/EBIDTA (TTM): 9.48
P/S (TTM): 1.67 P/B (TTM): 1.40 52 Week Range: $30.98 – $62.48

 

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