Starbucks(NASDAQ: SBUXShares rose in pre-market trading following news that CEO and director Laxman Narasimhan is resigning immediately and will be replaced by Chipotle (NYSE:CMG) CEO Brian Nicol. Nicol will take over as CEO The role will be effective September 9.gender) Chief Financial Officer Rachel Ruggeri will serve as interim CEO until then.
Chipotle (CMG) stock is down 9% Starbucks (SBUX) is 11% higher.
In addition, Starbucks Chairman Mellody Hobson will become lead independent director.
At the same time Narasimhan announced his exit, Chipotle Mexican Grill (CMG) announced Nicol’s departure effective August 31. As part of the top management changes, Jack Hartung, who recently announced that he will retire in 2025, will remain with the company indefinitely as president of strategy, finance and supply chain to ensure a smooth transition.
Narasimhan’s exit comes as activist investors Elliott Management and Starboard Value acquire positions at the company and push for changes in governance, board composition and senior executives.
