“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.”
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’s annual shareholder meeting on Wednesday.
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.
Shares of Starbucks, meanwhile, are down about 24% from last year, although shares rose 7% in Wednesday’s news.
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.
“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.”
“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.”
Already, half a dozen stores have voted to merge with many who are preparing for their own vote.
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