Kevin Johnson has been the CEO of Starbucks for five years.
While the company searches for a long term successor, Howard Schultz will return as interim CEO, once again taking the helm of the coffee chain he elevated to a global brand. He has been the chief executive of Starbucks three times.
The company's shares rose in morning trading. Starbucks will have a leadership transition ahead of its annual shareholder meeting.
I told the Board a year ago that I would be retiring from Starbucks.
In 2009, Johnson joined the board and became a member of the leadership team in 2015. He was named president and CEO in 2017. He wrote in his final letter to employees that Wednesday's annual shareholder meeting is his 14th with the company.
Johnson used his experience as a former tech executive to push Starbucks into the digital age and update its store footprint to reflect the different ways consumers want to buy coffee. He accelerated the chain's expansion in China, its second-largest market.
Starbucks shares rose more than 50% in his time as head of the company. The stock rose less than the S&P 500.
The chair of Starbucks told CNBC on Wednesday that the company will choose a permanent successor by the fall.
"We're not going to hire over Zoom, I can tell you that," said Hobson, co-CEO of Ariel Investments.
There are a number of strong candidates for the top job at the company.
In a statement, he said he had no plans to return to the company. From 1986 to 2000 he was the CEO. He contemplated a run for president in 2020.
You have a deep sense of responsibility when you love something. Although I did not plan to return to Starbucks, I know the company must transform once again to meet a new and exciting future where all of our stakeholders mutually flourish.
The company said that the interim chief executive would be paid $1. Starbucks wants to lean on Howard's expertise and brilliance throughout the transition, but he won't stay on longer as the company's next full-time chief executive.
There are a lot of candidates. She said that people want this job, and that they will have a new leader in the fall. We will get him until the fall. Trust me.
The board knew that Johnson would retire a year before discussing a successor or a transition.
Howard Shultz knows Starbucks. He knows the company's goals and strategy. Other interim CEOs couldn't help in ways that Schultz can. Timothy Hubbard, an assistant management professor at the University of Notre Dame, said that it was surprising that Starbucks did not have a succession plan.
The former COO of the company, who was thought to be the heir apparent, left the company in early 2021.
Starbucks's baristas are trying to unionize, and the CEO shift comes against that. More than 140 Starbucks stores in 26 states have petitioned the National Labor Relations Board to unionize. Six locations have voted in favor of a union.
In a move that may have signaled his return to the company, Starbucks CEO Howard Shultz and other executives went to Buffalo, New York-area cafes to discourage baristas from voting in favor of unionizing.
Starbucks retaliated against two employees in Phoenix who were trying to unionize, according to a complaint filed by the National Labor Relations Board. On Tuesday, a group of 75 investors in Starbucks sent a letter to the company's CEO and CFO urging them to adopt a policy of neutrality for all attempts to organize.
Starbucks made some mistakes when asked about the union push.
When you think about it, we think Howard is capable of engaging with our people in a way that will connect with them.
Four notable CEO transitions from publicly traded restaurant companies have taken place in recent months.
Domino's Pizza CEO Ritch Allison will retire at the end of April, while Gene Lee will retire the following month. The CEO of Wingstop stepped down to become the CEO of Salad and Go.
The chair of Starbucks spoke Wednesday. The day was misstated.
All Rights Reserved © 2024
