LOS ANGELES
,
August 20, 2024
(Industry Intelligence Inc.)
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Why did Starbucks' stock price immediately rise 25% after it was announced that the coffee chain was firing its CEO Laxmam Narasimhan and replacing him with Chipotle's CEO Brian Niccol? Ari Levy, Content Writer for FreightCaviar, shared his thoughts in a recent LinkedIn post.
"The simple lesson here: A change in leadership ignited a 25% run. Why? Because shareholders, customers, employees, and the media saw a sign of hope," Levy said. "If the leader of your organization is uninspiring and unapproachable, it's going to be hard to create a future that promotes innovation and buy-in."
Levy went on to point out that whlle Niccol is known as approachable, an innovator and fixer, Narasimhan has been quoted as saying that he doesn't work a minute past 6 pm and if you call, "you better be sure that it's important."
"I do believe when you are the CEO of a Fortune 500 company whose stock was down 25% YTD, the expectation is a bit different," Levy said.
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