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(Reuters) -Starbucks named Nordstrom's Cathy Smith as its finance chief on Tuesday, hiring a retail industry veteran to aid CEO Brian Niccol's efforts to revive sales at the coffee giant.
She will replace Rachel Ruggeri, a 20-year company veteran who became the chief financial officer in 2021.
Smith, 61, will join next month after leading the finance operations at the department store chain for about two years. Prior to that, Smith was the chief finance officer at big-box retailer Target for five years. She was also CFO at Walmart's international division.
Niccol highlighted Smith's retail experience and success in turning around businesses in a statement on Tuesday.
Niccol, hired from Chipotle last year, has put in place the "Back to Starbucks" plan focused on streamlining the business by improving customer experience at its U.S. stores through a simpler menu and reduced waiting times.
Smith's appointment is the latest in a shakeup under Niccol. Earlier this year, Starbucks said its North America president and chief supply chain officer would leave.
The company at the time appointed chief operating officer of Taco Bell, Mike Grams, to a newly created role of North America chief stores officer.
Niccol has also sought to simplify Starbucks' structure, removing management layers and creating smaller, more nimble teams.
Last month, Starbucks said it would eliminate 1,100 corporate roles but added that the company would continue to hire for "priority positions."
Prior to Niccol taking the helm roughly six months ago, Starbucks' shares had lost about 40% of their value as sales lagged, particularly in the U.S. The stock is up nearly 50% since Niccol's appointment was announced in August.
Starbucks said Smith would forfeit about $15 million in cash incentive and equity awards in connection with her departure from Nordstrom. In turn, Smith will receive a cash signing bonus of $5 million and roughly $11 million in equity grants.
She will have an initial base salary of $925,000 along with a annual cash incentive component.
(Reporting by Juveria Tabassum and Aishwarya Venugopal in Bengaluru; Editing by Leroy Leo and Sriraj Kalluvila)