"Today, we start a list of the worst CEOs in America. There will be an all-time winner later in the year. The way these CEOs are picked stems from major strategy stumbles. It also included a series of decisions we made that affect three groups. These are shareholders, customers, and employees. Some of these CEOs are fairly new to the public corporations they run. Others have had their jobs for years."
"( NASDAQ: SBUX) CEO Brian Niccol is first on the list. Starbucks Corp.'s share price suggests the company's best year is well behind it, based on its performance over the last five years. The stock is down 16% while the S&P 500 is up 84%. The coffee store company has had a series of chief executives over the period. Kevin Johnson, Howard Schultz, Laxman Narasimhan, and Brian Niccol have all held the job. Schultz has had the job twice recently."
"Niccol is the board's latest CEO experiment. After a little more than a year, it has already failed, particularly for those who look at the stock price. In March, it topped $117. Today, it trades at $83. Based on three quarters of earnings and a set of announcements about planned improvements, investors have lost whatever patience they had. Niccol was expected to be a turnaround artist due to his track record at Taco Bell and Chipotle ( NYSE: CMG)."
A list of poor-performing CEOs is being compiled based on major strategy stumbles and decisions affecting shareholders, customers, and employees. Starbucks shares have lagged, down 16% over five years while the S&P 500 rose 84%. The company cycled through multiple CEOs, including Kevin Johnson, Howard Schultz, Laxman Narasimhan, and Brian Niccol. Niccol's tenure has seen the stock fall from a March high near $117 to about $83, eroding investor patience after three quarters of results and announced improvements. Niccol entered with expectations from prior turnaround work but has taken actions such as exiting China tied to disappointing outcomes.
Read at 24/7 Wall St.
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