Jim Cramer shared his thoughts on the recent Starbucks Corp. (NASDAQ:SBUX) CEO change and its implications for traditional investing strategies.

What Happened: Cramer the host of CNBC's "Mad Money," discussed the recent shift in the Starbucks leadership. He noted that the change in CEO, from Laxman Narasimhan to Brian Niccol, the former CEO of Chipotle Mexican Grill (NYSE:CMG), has been a significant factor in the company's recent stock surge.

Cramer wrote, "One thing you hate is when a shibboleth that's meant to exert and exact discipline actually loses you money. That's how I have been feeling about the idea that giving up on value is a sin."

"Since the late '80s, I have held that if you think that a company, or its brand, is valuable, you must fight to "keep it on your sheets," the genuine Wall Street gibberish for holding on to the stock," he added.

Cramer pointed out that the market had lost faith in Narasimhan and his management style, which he described as "consultant-like." The change in leadership, according to Cramer, has renewed investor confidence in the company's future prospects.

He also raised questions about the potential challenges Niccol might face, particularly in light of the lingering influence of Howard Schultz, the company's founder and a major shareholder. Cramer, however, expressed confidence in Niccol's ability to steer the company in the right direction.

Why It Matters: The leadership transition at Starbucks comes at a crucial time. Billionaire hedge fund manager Bill Ackman recently reduced his stake in Chipotle, hinting at potential challenges within the company.

Niccol's appointment has already had a significant impact on Starbucks' valuation. The company's stock jumped around 20%, adding more than $15 billion in valuation. This surge reflects investor confidence in Niccol's ability to steer the company towards growth.

Moreover, Niccol's compensation package is substantial, including a $113 million payday and remote working privileges. This package includes a $10 million sign-on bonus, a $75 million equity grant, and a potential $23 million annual grant beginning in fiscal 2025.

Cramer previously emphasized Niccol's pivotal role in Starbucks' turnaround. In his show, Cramer highlighted that Niccol is the "key to a new Starbucks," but cautioned that the turnaround "can't happen overnight." Starbucks has faced challenges in its major markets, including a decline in same-store sales for two consecutive quarters.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote