Howard Schultz was appointed to the position of Interim CEO at Starbucks, and in recognition of this, he was awarded a salary of one million dollars. Furthermore, as a gesture to show appreciation for Laxman Narasimhan taking on the role of Starbucks CEO in 2022, the company provided him with an exceptional package worth $8.8 million.
Following the exchange of powers at Starbucks, the company also shelled out millions of dollars to executives who had only been there for a short time. Former CEO Kevin Johnson was granted $16.7 million, while General Counsel Rachel Gonzalez got $7.6 million on her departure which included a severance payment of $2.3 million and an additional $4.8 million in cash. Consequently, Gonzalez’s overall compensation for the year 2022 amounted to a hefty $11.7 million despite her brief tenure at Starbucks.
Starbucks is one of the most profitable restaurant chains in the world, and its former CEO Johnson was paid a hefty $20.4 million in 2021, making him one of the highest-paid executives in the industry.
Despite not receiving stock options or bonuses, Schultz was also greatly rewarded for his hard work with a staggering $374,557 in “other compensation”, which mainly consisted of access to Starbucks’ company plane. This enabled him to travel around and gain an insight into the business since taking over. It’s clear that the company had great faith in him from the get-go, as demonstrated by his substantial remuneration.A year later, upon being named successor to Schultz in September 2022, Narasimhan was offered a generous sign-on bonus and stock awards as an incentive for driving the share price higher. He has been working under Schultz as CEO elect since then and will officially take over his full-time role on April 1, 2023, one year after Schultz’s return.
From humble beginnings in Brooklyn, New York, to becoming one of the most influential figures in business and coffee culture today – Howard Schultz has come a long way. His parents’ hard work enabled him to become the first in his family with an education, obtaining a degree from Northern Michigan University.
In 1982, Howard Schultz joined Starbucks as a manager. However, after a trip to Italy, he was inspired to pursue his own coffee-centric venture, called II Giornale. After leaving the company for a while, he returned in 1987 with ambitious plans of acquiring Starbucks which had grown from its humble start of five stores to 17 locations. Under Mr. Schulz’s tenure as CEO, Starbucks has since become an iconic brand worldwide!
Since then, Schultz has worked diligently to expand the company to more than 70 countries- employing over 350,000 people and making Starbucks one of the world’s leading coffee companies in the process. His innovative initiatives have helped shape the trajectory of the business, allowing it to be as successful as it is today.
Laxman Narasimhan is an academically distinguished individual equipped with a Mechanical Engineering degree from the University of Pune, India. He also has a Master of Business Administration in Finance from The Wharton School of The University of Pennsylvania and a Master of Arts in German and International Studies from The Lauder Institute at The University of Pennsylvania.
With almost three decades of experience advising and leading consumer-facing companies, he knows a thing or two about what it takes to succeed in the industry. In September 2019, Narasimhan was appointed CEO of Reckitt and his leadership has been instrumental in the company’s continued success. Since he took over, he had implemented a new strategy, execution plan, and foundational capabilities that have paid off for the Anglo-Dutch multinational FMCG giant.
Before joining Recknitt, Narasimhan held several prominent positions at PepsiCo from 2012 to 2019, such as CEO for Europe, Latin America and Sub-Saharan Africa operations, as well as Global Chief Commercial Officer (COO). Prior to this, Narasimhan was a Director at McKinsey & Company between 1993 and 2012.
Who is currently the CEO of the Starbucks company?
Currently, the CEO of Starbucks is Indian-born Laxman Narasimhan.
Who is Starbucks owned by?
In 1971, Zev Siegl, Gordon Bowker, and Jerry Baldwin founded Starbucks in Seattle’s Pike Place Market. Later in the early 1980s, Howard Schultz purchased the business from them.