Howard Schultz returns to Starbucks as interim CEO

“A year ago, I signaled to the board that I was considering retiring from Starbucks as the global epidemic was coming to an end,” Johnson said in a statement. “I feel like this is a natural book for my 13 years with the company.”

Johnson joined Starbucks (SBUX) Board in 2009, and in 2015 became Chairman and CEO. He replaced Schultz in 2017 as CEO.

Until September, Johnson will be a special adviser to the company and its board.

“As I make this change, we are very fortunate to have a founder who can step in on an interim basis, and give the board time to further explore potential candidates and make the right long-term successor decision for the company,” Johnson added.

In a video message, Johnson said Starbucks was “a gift in my life” and that he was “filled with gratitude and hope for the future.” He, along with Melody Hobson, the independent chairman of the board of directors, will share many more during the company‚Äôs annual shareholder meeting on Wednesday.

Johnson led the company through difficult times before the epidemic. For example, in 2018, two black men were arrested in Philadelphia Starbucks while waiting for a friend. Widespread criticism Of the company. Johnson Apologized for the way They treat and set one up Training class for staff.

In July 2021, Starbucks stock reached an all-time high, along with other restaurant stocks that were high in the summer. Johnson implemented a number of strategies in China, including expanding, improving the company’s reward program and improving its technology.

But last year, Stakeholders voted against Company CEO pay proposal – a rare move that suggests some of them thought Johnson was overpaid. The company received $ 20.4 million in total compensation for fiscal 2021.
Under the 2019 deal, Johnson said the company could earn up to $ 50 million if it achieves performance goals from this position in fiscal 2022. The The Wall Street Journal The company will decide on the performance bonus in September, but does not currently expect to pay that fee. A Starbucks spokeswoman confirmed the report was “accurate” to CNN Business.

Shares of Starbucks, meanwhile, are down about 24% from last year, although shares rose 7% in Wednesday’s news.

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Returning to Schultz

Last year the Starbucks board hired management search firm Russell Reynolds Associates to look for an alternative to Johnson, the company said. Schultz will help find a new, permanent CEO and manage the day-to-day business, Starbucks said. For his services, he earns $ 1.

“When you love something, you have a deep responsibility to help when called,” Schultz said in a statement. “Although I do not plan to return to Starbucks, I know that the company needs to move once again to meet a new and exciting future in which all of our partners thrive on each other.”

Schultz served as CEO of Starbucks from 1987 to 2000. He returned as CEO in 2008 and remained in office until handing over power to Johnson in 2017. He stepped down as executive chairman and member in 2018.

But Schultz has been involved ever since. November, He wrote an open letter Previously posted on the Starbucks website Successful vote for unionization At a Starbucks store in Buffalo, New York.

“As a partner in Starbucks, no partner needs to have a representative to get the products we all own,” he wrote. “I’m sad and anxious if anyone thinks it’s necessary now.”

Schultz played with an idea Presidential Initiative in 2019 Before Decided not to runStarbucks triggers Provide guidance to employees How to address political questions about his plans in stores.

“Howard has had a tremendous track record of running the company successfully,” Edward Jones analyst Brian Yarbro told CNN Business.

Cowan analyst Andrew Charles wrote in a note on Wednesday that “we are a little surprised that the company is considering external candidates, as we remember many top executives who worked under Howard Schultz.” “However, union advertising can be a factor in motivating a company to look outside.”

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Already, half a dozen stores have voted to merge with many who are preparing for their own vote.

“Union dialogue is front and center.” Hobson told CNBC On Wednesday. “We made some mistakes here. We weren’t asked. We should have done it.”
This is not Starbucks’ first high-profile launch in recent years. In 2021, Rosalind Brewer resigned as COO Become a CEO Of Walgreens (WBA).

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