09:04 AM EDT, 08/13/2024 (MT Newswires) -- (Updates with additional details in the fourth and fifth paragraphs.)

Starbucks ( SBUX ) said Tuesday that Brian Niccol has been named chair and chief executive officer, effective Sept. 9.

Laxman Narasimhan has stepped down as CEO and board member, the company said.

Chief Financial Officer Rachel Ruggeri will serve as interim chief executive until Niccol, who currently serves as Chipotle Mexican Grill's ( CMG ) chair and CEO, takes over, Starbucks ( SBUX ) said.

Starbucks ( SBUX ) said its board chair, Mellody Hobson, will become lead independent director.

It was earlier reported that the company was negotiating a settlement with Elliott Investment Management that would include a board seat for the activist investor, which had been pushing for governance improvements at Starbucks ( SBUX ).

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